The business strategy at Amazon has changed much since it began some 13 years ago. Beginning as a way to sell books over the internet directly to customers, Amazon offered a much larger selection and lower prices. By providing great customer support via telephone and e-mail the customers were able to connect with real people. The creation of “1-click” shopping was Amazon’s own. In 1998 they began selling music and video products. The take home message is that goals were set upon a “virtual” retail company. This encompassed “lean inventories, low head count, and significant cost savings over traditional bookstores.”
In the early 2000s Amazon lowered prices, gave free shipping, and offered e-commerce to business in an attempt to boost revenues. Next they looked into operations for improvements with efficiency. Finally in 2003 Amazon was on paper a profitable corporation. Even today they still are doing well with the discount prices and ease of shopping they offer.
3. Why did the company change its strategy?
Amazon changed its strategy throughout its existence to compete better. The survival and success of any company, especially an online retailer is dependent upon its ability to adjust to the current market. By making changes to its business strategy Amazon was able to report profits in less than a ten year period. Not to mention continual profits until recently. The changes made within Amazon as noted in the previous question were timely and we will likely see more in the near future.
4. Do you thing Amazon can continue to be successful? Explain your answer.
I believe that Amazon is a great company. I have used them repeatedly over the years for purchasing textbooks and personal reading materials. I do not hesitate or even shop around because I am so confident that I will be getting a great deal at Amazon. I would gladly use them over E-Bay as I trust the website more. As for the future I think they will continue to deliver for their investors. If the senior management is flexible and creative they can adjust to any economic situation. Not to mention that there will always be college students who need books. A good history combined with a more or less steady base for revenue and customers also make my beliefs more solid, in regards to their continual success.
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