Amazon.Com: an E-Commerce Retailer
Amazon.com: An E-Commerce Retailer
A case report prepared for
MG 495 Business Policy
(Fall I 2012)
Miguel Lopez
26 August 2012
Amazon.com: An E-Commerce Retailer
I. INTRODUCTION
Selling nothing but books is how Amazon.com started its business in 1995, now is acknowledged as the leading online retailer in the world. In addition, its new line of products is the compact disc, digital video disc and movie videos, to include many other products from retail partners from around the world as partnership agreements, which sell their goods through the Amazon.com website. This agreement known as “powered by Amazon,” allows partnered companies to use Amazon.com website capabilities and technology to order and purchase products. Retailers that have played a part in powered by Amazon partnership are Toys ‘R’ Us and Target.
A. EXECUTIVE SUMMARY
1. Summary statement of the problem: Even though Amazon.com implemented a viable corporate strategy by increased market share, expanded product offering, and overall sales growth, yet still faces the pressure from the stock market to continue to produce steady profits. Coming from a combination of trimmed customer confidence level and a larger unemployment rate, these two areas make the retail future of Amazon.com to seem unclear. 2. Summary statement of the recommended solution: Due to its low overhead, the more sales that Amazon.com had, the bigger the increase in profit margin on the items it sold. (Collins, Mockler, & Gartenfeld, 2003, p. 3). Also collecting sale payments right away and floating partner retailer’s payments 30 to 40 days, in order to generate a great amount of working capital. Maximize the competitive advantage of not having a retail operating expenses to sell products and services. The introduction of the zShops concept to small and midsized companies provided them a website to
A case report prepared for
MG 495 Business Policy
(Fall I 2012)
Miguel Lopez
26 August 2012
Amazon.com: An E-Commerce Retailer
I. INTRODUCTION
Selling nothing but books is how Amazon.com started its business in 1995, now is acknowledged as the leading online retailer in the world. In addition, its new line of products is the compact disc, digital video disc and movie videos, to include many other products from retail partners from around the world as partnership agreements, which sell their goods through the Amazon.com website. This agreement known as “powered by Amazon,” allows partnered companies to use Amazon.com website capabilities and technology to order and purchase products. Retailers that have played a part in powered by Amazon partnership are Toys ‘R’ Us and Target.
A. EXECUTIVE SUMMARY
1. Summary statement of the problem: Even though Amazon.com implemented a viable corporate strategy by increased market share, expanded product offering, and overall sales growth, yet still faces the pressure from the stock market to continue to produce steady profits. Coming from a combination of trimmed customer confidence level and a larger unemployment rate, these two areas make the retail future of Amazon.com to seem unclear. 2. Summary statement of the recommended solution: Due to its low overhead, the more sales that Amazon.com had, the bigger the increase in profit margin on the items it sold. (Collins, Mockler, & Gartenfeld, 2003, p. 3). Also collecting sale payments right away and floating partner retailer’s payments 30 to 40 days, in order to generate a great amount of working capital. Maximize the competitive advantage of not having a retail operating expenses to sell products and services. The introduction of the zShops concept to small and midsized companies provided them a website to
References: Collins, P.; Mockler, R; & Gartenfeld, M, 2003; From Wheelen, T., & Hunger, J. (2008). Strategic management and business policy. Upper Saddle River, NJ: Prentice Hall.