Essays on Strategic Managment: Amazon.com Case Study Case Study

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Class: Teacher: November 15, 2007University: Amazon Business Model 1995-2003. Changed and EvolvedAn American based electronic company, amazaon. com has its origin and roots in Seattle, Washington. It is agreed widely that amazaon. com is almost the number one company that initiated e-commerce. The CEO of company, Jeff Bezos is regarded as founder of e-commerce. Jeff Bezos founded the company in 1994. That year is also termed as an early and initial years of conventional internet. Bezos experienced and exploited the potential to complete extent, present in Internet. It is termed as the largest bookstore in brick-and mortar, selling an excess of two hundred thousand titles, online.

As earlier mentioned that company was incorporated in the year 1994 in Washington, it was re-incorporated after two years in 1996.The company is spending millions of dollars to obtain customers and serve them beyond their expectations. This being the main strategy has worked. Company progressed by leaps and bounds. Amazon placed themselves not only in the category of books, but also targeted customers of CDs and DVDs. (Barry, D. 2006). The company also deals with barbecues, TVs with larger screens and many products of kind.

Jeff Bezos served his career as Vice President in a Bank based at New York. He sensed the power and increasing supremacy of internet especially in the Web format. The growth rate of internet at that particular time was two thousand three hundred percent per year. A critical analysis was made by Bezos by studying a variety of twenty products. He searched for the best seller product online. (Borders Overbroad? 2005)The results recommended that Bezos should choose selling books online as he found a variety of more than three million books available globally.

Bezos thus initiated the sale of online books in July 1995. Main focus of Amazon was on enormous and gigantic selection, high quality of service, effectiveness and pricing compatible with target customers. (Assael H. 2000)Book stores dealing in physical stock make mentionable investments in the areas of inventory, staff and building. The more investment is, the less are chances for keeping enough stock. Moreover Amazon sensed that it is difficult for the publishers and book sellers to serve the customers globally keeping in view the limitations imposed by demographics of the customers.

In the initial years Amazon used the shoulders of retail stores for maintaining its inventory. In this manner Amazon was successful to avoid the costs of real estates also. (Alsop, S. 2004) In the initial years Amazon did not face major rivalry as the prominent players were not present in this category. The biggest player Barnes & Noble possessed about 1/10th market share and that too offline. Amazon enjoyed the initiative for many years and kept advantage by servicing the segments of CDs, Pet supplies, electronics etc.

(Bernhard, W. 2007) Their services also include auctions thereby placing themselves as a leading market player offline as well as online. (Wills, C. 1999) In the year Amazon made investment in HomeGrocer. com to capitalize on their market share. In the same year they also entered into a partnership with Sotheby. Under the umbrella of this partnership Sothebys. Amazon. com were successful in carrying art and antiquities to be purchased through online auctions. Later in 2001, they formed a partnership with Border. com with the intention to help out its sales plans and schemes.

(Alsop, S. 2004)

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