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Amazon.Com E-Bussiness Model

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Amazon.Com E-Bussiness Model
Running Head: AMAZON.COM 'S E-BUSINESS MODEL 1

Amazon.com 's E-Business Model

Lauren Edwards

Dr. Etido Akpan

Business Enterprise

May 1, 2011 (Resubmitted May 11, 2011)

Amazon.com 's E-Business Model 2

1. 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.

Amazon.com, the largest online retailer in the United States, was founded by Jeff Bezos in 1994 and the site went online in 1995. Amazon.com first started out as huge online bookstore, now the company sells products such as CD 's, DVD 's, toys, MP3 downloads, computer software, furniture, video games, apparel, electronics, and food among other things. When a company offers so many different products in different categories there are bound to be some pros and cons associated. The most obvious pro that came from the growth and diversification of Amazon.com is their profitability. When Amazon.com finally did see some profit it was six years after it first launched on the web, with a profit of $5 million to now annual revenues of $6.7 billion.(Amazon.com, 2011) With offering so many different products, Amazon.com has a greater potential to make the most profit because there is literally has something for everybody. Founder Jeff Bezos ' goal for Amazon.com was to have every product in the alphabet, (Amazon.com, 2011) with having such a large product selection, profit is bound to follow, eventually. Another pro for Amazon.com is their customer base and loyalty. The company currently has 130 million active customer accounts and 2 million active sellers. (Amazon.com, 2011) The more the product line up grows and diversifies, the more their customers will grow and diversify as well. When Amazon.com only sold books they had a large consumers presents, but only from people who wanted to buy books. Now the consumer presents isn 't just for those who like to


References: Amazon.com. (2011, May 1). Retrieved from http://www.amazon.com Amazon.com. (2011). Wikipedia. Retrieved May 1, 2011, from http://en.wikipedia.org/wiki/Amazon.com Annual reports and proxies. (2011, April 27). Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol- reportsannual Barnesandnoble.com. (2011, May 1). Retrieved from http://www.barnesandnoble.com Boone, L.E., & Kurtz, D.L. (2011). Contemporary Business. Hoboken, NJ: Walsworth Publishing Company. Borders.com. (2011, May 1). Retrieved from http://www.borders.com
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