How did Amazon make the transition from bookseller to other merchandise?
1. Research and Background Content
Translate any website
• Zamalek Fans-Arabic
• Arte Toreo-Spain
1.2 Organization Background
Amazon.com is an e-commerce company based in Seattle, Washington (USA). Although he started selling books, currently markets a wide range of products, among which are music, video, clothing, toys, jewelry, electronics and more.Besides operating in the United States have websites in other markets such as Canada, France, Germany, Japan and the United Kingdom.
In 2003, the company had revenues of $ 5.3 billion. It has about 26 million customers. Part of the Fortune 500.
Brand Recognition: the Amazon brand is synonymous with online sales and customer-oriented service
The business model: have the ability to increase sales(cash and units) without large increases in direct costs
Diversification: the variety of products it sells and geographic markets serving gives it great stability.
Business performance: Over the past years has continuously reinvented itself, constantly improving its value proposition.
Amazon has the great opportunity Increase pre-sale: the pre-sale of items (customers pay before they areavailable and months before they have to pay the provider), it is a big business that can increase
Multi-supplier strategy: to include third-party stores (like Circuit City, Toys R Us and Office Depot), allows you to add a lot of products, improve its value proposition and strengthening its brand
Web services: the AWS service, whereby allowing third parties to develop applications for itstechnology platform, allows you to constantly innovate without major investment. Underdeveloped markets: the rapid increase in Internet use and broadband in other countries (including those where already present) will allow you to continue to grow internationally).
On the Other hand Growing competition: the segment of electronic commerce is evolving rapidly and highly competitive. Companies like eBayand Walmart are short-term threats Inventory risk, to meet its promised delivery time, the company must maintain significant inventory. This puts you at risk to changes in demand and product cycles Performance under pressure: the company must justify the "price aggressively high" assigned to the financial markets.
It is important recognized that one of the Strategies is based on low prices: themajor incentive for the company are its low prices, although these have achieved their purpose, it is possible that customers are attracted to other stores that provide greater or better incentives.
Complexity of the business: to increase the variety of products and geographical reach, it becomes more complex distribution
Growth: The growth of the company, excluding special events (like therelease of Harry Potter) are not impressive
Shipping Cost: for some time, the company has offered free shipping, to win customers, this strategy is costly and not necessarily sustainable
2. Rationale for the Chosen Topic
One of the latest questions in relation to electronic commerce between companies and individuals, known as B2C or business toconsumer "is whether the purchases through this channel are cheaper than through traditional channels. Although at first sight seems an easy answer thesis through a simple empirical analysis, there is a question that it adds some difficulty: how monetarily quantified the cost supposed to make the purchase conventional establishments? It is not easy to introduce a much respect, as this depends on each...