Preview

Amazon.Com Business Model

Powerful Essays
Open Document
Open Document
2362 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Amazon.Com Business Model
Amazon.com’s E-Business Model
Amazon.com was founded in 1994 as an online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon competes in a vast array of markets including: books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand.

Imagine if Toys-R-Us, the largest toy retailer began selling books or if the NBA began selling hardware online. The threat of consumer confusion would rise, thus bringing into question the value of the Toys-R-Us and NBA brands. Some analysts question the wisdom of Amazon.com selling products that are typically sold in the business-to-business markets. For example, you can now purchase industrial, laboratory, and scientific supplies from Amazon.com. (See Appendix – comparison and contrast chart of Amazon.com, Barnes and Noble, and Borders.)

Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

The study comprises of Amazon.com which started its history by selling books and now one of the online market leaders globally not only for books but products from various categories. Company started with a mission to be Earth’s most customer centric company. In order to become the largest and convenience online store for all, there are major problems or threat being faced by Amazon.com in succeeding its mission. The major problems are Amazon facing are and may be some of Amazon.com recommended solutions such as; technology integration and R&D, strategic cost analysis, differentiation, inventory, visionary & informative, keep customers in the loop on everything, shipping & delivery,


References: Amazon.com Annual Report. Website retrieved 26 April 2011.  http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual  Amazon. Website retrieved 26 April 2011. www.Amazon.com Barnes and Noble. Website retrieved 26 April 2011. www.BarnesAndNoble.com Borders. Website retrieved 26 April 2011.  www.Borders.com American Booksellers Association - Research & Statistics. Website retrieved 27 April 2011. http://www.bookweb.org/research/stats/389.html American Booksellers Association "Study Shows Anemic Retail Book Market". Website retrieved 27 April 2011. http://www.bookweb.org/news/pressroom/331.html E-Commerce Times
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    BUS3022 Unit 3 Assignment 1
    • 891 Words
    • 3 Pages

    BUS3022 Unit 3 Assignment 1

    Noran, E. (2013, July 8). Analysis of the Amazon Business Model. Retrieved December 6, 2014, from http://www.digitalbusinessmodelguru.com/2013/07/analysis-of-amazon-business-model.html…

    • 891 Words
    • 3 Pages
    Better Essays
    Read More
  • Better Essays

    Mgt 330 External-Internal Factors Paper
    • 1179 Words
    • 5 Pages

    Mgt 330 External-Internal Factors Paper

    In planning their business, Amazon had to take into account all internal and external factors to avoid catastrophic troubles while beginning their company. The same concept holds true, even today. Internal and external factors affect the planning, organizing, leading, and controlling (four functions of management) functions of management involved in the successful and continual growth of Amazon’s company. Their company began as a planned rival to Google and Microsoft, for lead in the online retail industry. With their original focus, Amazon used four different key values to help their business off-the-ground, and stay focused on their personalized progress. Their ability to zone-in on customers, dynamic pricing, personalized service, and brand variety was their plan for success (Amazon, 2011). It became a primary goal for Amazon to make their customers’ online shopping experience easier and more enjoyable while supplying dynamic pricing options and the convenience of a ‘one-stop’ retail ordering system. The business model of Amazon included selling books, compact discs, movies, electronics, and games. Currently, Amazon has the largest online retail selection because it extends its inventory out to offer home goods,…

    • 1179 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Amazon Case Homework Student Version
    • 332 Words
    • 3 Pages

    Amazon Case Homework Student Version

    1. What is Amazon’s business and what factors are critical to its success? [list or table]…

    • 332 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Capstone Project Bus599
    • 2781 Words
    • 12 Pages

    Capstone Project Bus599

    Amazon.com is an organization that offers a broad range of services to consumers and is considered an online leader of pure-plays - pure online merchants. Amazon.com was founded in July of 1995 with a mission to fully utilize the Internet to make book buying fast, easy, and all in all, a very enjoyable experience. They currently have 29 million customers in 160 different countries, making Amazon.com one of the leading online merchants. It is rated third in business-to-consumer online revenue as of June 20, 2000. Amazon.com represents the ideal e-Commerce company. It was one of the first to demonstrate the potential for "virtual" upstarts and turned the market on end - even leading the "bricks and mortar" companies.…

    • 2781 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Better Essays

    Amazon Inventory Evaluation Method
    • 1752 Words
    • 6 Pages

    Amazon Inventory Evaluation Method

    The Internet has become an extremely popular place for small businesses and firms to advertise and sell their products. Although this is a very easy and popular way to sell, it all depends on how well the company uses its resources and marketing ideas. One company that is widely known across the country and famous for having grown so fast since its online creation is Amazon.com. It opened a whole new market for competitive business in the specialty industries on the computer and has proven to be a successful company on the Net. Amazon.com is one of the famous public companies that investors love to invest into. How can Amazon.com meet its goal of achieving profitability to please its investors? What information do investors need to have to consider continuing investment in Amazon.com? Financial statements are meant to enable the investors to evaluate the performance of Amazon.com, analyzer its cash flow and assess its financial position. In this paper, Learning Team D will examine the cost-flow method that Amazon uses in its inventory, its impact on adjustment and how Amazon discloses on its financial statement. In addition, this paper also analyzes the impact on adjustment to Amazon's current ratio and discusses whether its competitors made the same adjustment.…

    • 1752 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Yahoo and Amazon: Building a Competitive Advantage
    • 1627 Words
    • 5 Pages

    Yahoo and Amazon: Building a Competitive Advantage

    1. Describe, in brief, the histories of both of Amazon.com and Yahoo.com, and determine the core business of each.…

    • 1627 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Financial Analysis Project Part IV 2 1

    • 1349 Words
    • 5 Pages

    Financial Analysis Project Part IV 2 1

    References: Amazon.com, Inc. (2014, october 10). Financial and Strategic Analysis Review. Retrieved from Amazon.com, Inc: http://callisto.ggsrv.com/imgsrv/Fetch?banner=4f874577&digest=4f8c317c2ce3be6a85eb173efa90ff7c&contentSet=SWOT&recordID=360812_GDRT27249FSA…

    • 1349 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    D1 Evaluate how successful a selected
    • 828 Words
    • 3 Pages

    D1 Evaluate how successful a selected

    In this report I will be evaluating how successful Amazon as a business has been in preparing the growing use of the e-business.…

    • 828 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Evaluation of Corporate Performance
    • 2357 Words
    • 10 Pages

    Evaluation of Corporate Performance

    Amazon’s 2012 financial statement is quite extensive. The statement reviews the business in general, risk factors, common stock, shareholder maters, and operational results. The business’ main goal is to be he Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators. Customers are served through the organization’s retail website. The website focuses on selection, price, and convenience. Amazon also offers programs that enable sellers to sell their products on its website and their own branded websites. The company serves developers and enterprises of all sizes by providing access to technology infrastructure that enables virtually any type of business. In addition, it serves authors and independent publishers with Kindle Direct Publishing. Knowing the…

    • 2357 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    ASSIGNMENT 1 BUS 599 Samantha Phill
    • 3136 Words
    • 11 Pages

    ASSIGNMENT 1 BUS 599 Samantha Phill

    Describe, in brief, the histories of both of Amazon.com and Yahoo.com, and determine the core business of each.…

    • 3136 Words
    • 11 Pages
    Best Essays
    Read More
  • Good Essays

    Amazon Long Tail
    • 730 Words
    • 3 Pages

    Amazon Long Tail

    Amazon “Offer{s} a nearly limitless selection and something interesting happens: there’s actually more money to be made selling the obscure stuff than the hits. At Amazon.com, roughly 60 percent of books sold are titles that aren’t available in even the biggest Borders or Barnes & Noble Superstores”.(Anderson 2004)…

    • 730 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Case Study- The Amazon of Innovation
    • 1735 Words
    • 7 Pages

    Case Study- The Amazon of Innovation

    Q2. In what ways does Amazon, as a company, evidence the willingness and ability to collaborate?…

    • 1735 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Amazon: History and Background
    • 1498 Words
    • 6 Pages

    Amazon: History and Background

    Amazon was founded in 1994 by Jeff Bezos, who is still the head of the company at the time. Based in Seattle, Amazon started out as an online bookseller and went on to become the world 's largest non-travel e-commerce business. Once the website was established as a bookseller, it was a logical step into the sale of other entertainment products, such as music and films, and also into the hardware used to deliver home entertainment.…

    • 1498 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Cultural Diversity 101
    • 655 Words
    • 3 Pages

    Cultural Diversity 101

    In this assignment, Amazon.com and Yahoo.com 's history will be described along with determining the core of both businesses. Next, the key strategic differences that have impacted the relative success of both Amazon.com and Yahoo.com will be determined. After determining the differences, I will compare and contrast the approach to strategic planning that each company has pursued in order to achieve a competitive advantage. Next, I will analyze the manner in which each company 's distinctive competencies help to shape the strategies that each company pursues. Last but not least, there will be a recommendation of one functional level strategy for each company which will prescribe the essential ways in which each company may achieve superior efficiency, quality, innovation, and customer responsiveness.…

    • 655 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Value Chain Analysis
    • 2679 Words
    • 8 Pages

    Value Chain Analysis

    The company was founded in 1994 by Jeffery P. Bezos. In the early years of Amazon they were mostly known for selling books. The idea behind it was that traditional brick-and-mortar stores could not hold more than a few hundred thousand books, whereas Amazon being an online store could hold an infinite amount of books (“History of amazon.com,”). Since its early days of being an online book store Amazon as grown to become a fortune 500 company with a global reach. Amazon operates in over 10 countries worldwide with over 88,000 employees (“Inside amazon,”). Amazon is one of the most visited sites in the world, with over 500,000,000 monthly visitors, and over 100 million active members (“Top 15 most popular websites”, 2014).…

    • 2679 Words
    • 8 Pages
    Better Essays
    Read More

Related Topics