Amazon Case Write Up

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How has Amazon changed the market for books?

Amazon has changed the market for books by making it easily accessible with a vast selection for customers to chose from where a book that the local store doesn't offer is just a click away. Amazon makes it cost effective for both the writers and customers as costs are reduced when books are online instead of paper. Amazon also acts as a storage system for readers that don't have the space in the house for actual paper books. Amazon makes it possible for anyone anywhere to purchase a book, cheaply and with convenience included.

Describe the role the “three invariants” play in Amazon’s business model. Amazon has offered a digital representation of books by storing books online for easy access. Computer power is used where Amazon offers reliable storage, such as Amazon cloud where large companies rely on Amazon for storage.

By being a top online retailer, Amazon has gained capabilities it can use for new business ventures. Describe some of these based on the articles you have read. How will they help Amazon become more profitable?

Amazon has gained a good reputation where large well known companies are happy to form alliances with Amazon. Therefore a customer that knows these well known companies with big brands will be susceptible to buy from Amazon as they know and trust the big brands the companies offer. Amazon has 'staying power' as there have being many companies that offer the same products and services however Amazon still remains arguably the largest online retailer.

What risks does it face as Amazon offers more products and services? By Amazon offering more products and services it risks losing the original speciality that Amazon first offered and in-turn losing customers to other companies that provide better products and services.
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