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Case Study, Amazon: From Book Seller to Service Provider.

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Case Study, Amazon: From Book Seller to Service Provider.
University of Phoenix | Amazon Evolution | Toni Smith | | XBIS/219 - BUSINESS INFORMATION SYSTEMS | 4/21/2013 |

Instructor: Milton Morgan

Case Study, Amazon: From Book Seller to Service Provider. |

Niklas Zennstrom stated: “When we look at investing, we always think about 'how defensible is this, how likely is it that somebody is going to copy this.' E-commerce tends to be something easy to copy because it's execution.” Amazon is the world’s largest online retailer since the company opened in the garage of Jeff Bezos’, and its yearly are over 10 billion dollars. Many companies subsequently have copied Amazon and now compete for e-commerce profits; therefore companies like Google and Microsoft become an issue for Amazon. This has instigated Amazon to develop products for other e-commerce businesses, and now Amazon offers business- to -business e-commerce. This paper will discuss whether Amazon is moving away from its core competency of a leading online retailer, and if this is a wise strategy. A brief description of the Amazon database, how Amazon uses each component, and what data management issues may be encountered by Amazon, the relationship between data, information, and how Amazon tackles each will be included in this paper. To survive the invasion of companies like Google, Amazon has resolved to supply a series of computing, storage and other services that make its infrastructure available to businesses and people to assist them administer the technological and logistical parts of their company. Amazon only uses 10 percent of its processing capability, and offering these additional services will not impair other segments of the online retailer. This is a move away from its core expertise; however, this is a shrewd decision on the part of the Amazon Company. This strategy allows the company to boost earnings by using resources already on hand. This is similar

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