SITUATION ANALYSIS
A) ENVIRONMENT
Amazon.com has started online book-selling in 1995 and this lead creation of a lot of new trends. The book distribution and book selling industry was changed deeply in July 1995 when Jeffrey Bezos brought virtual book-seller Amazon.com online. This new idea of online book-selling company changed the whole consistency of the environment. The industry which works in book-selling environment was relatively stable because there were so many book publishers and individual book- sellers. Actually the market was lovely, enjoyable, comfortable and non-price competitive. In such environment, all companies were enjoying good revenues and profits. However; Amazon.com made a great change all of these. By being first in online book-selling business, Amazon.com could pick all of the advantages. It could also be called “first-mover advantages”.
In 1996, there was an important strategy which was made by Amazon.com to attract new customers. Amazon Associates programs were implemented. Any person or small business that operates a website can become affiliated to Amazon by putting an official Amazon hyperlink to Amazon’s website on its own website. If a referral results in a sale the Associate receives a commission from Amazon.
Amazon is a virtual company which can use the Internet and World Wide Web to sell customers around the world. However; the ability to enter new overseas markets was limited by a major factor: Amazon.com offered its customers the biggest selection of books written in the English language so that an obvious first choice would be the United Kingdom in 1996 followed by other English-speaking nations such as Australia, New Zealand, India and Germany in 1998. Language can be accepted as one of the biggest cultural difficulties.
In 1999 Bezos began to search for other products that could be sold profitably over the internet. One of these growing sectors was music CDs. From 2000 on, it expended its store fronts and began to... [continues]
A) ENVIRONMENT
Amazon.com has started online book-selling in 1995 and this lead creation of a lot of new trends. The book distribution and book selling industry was changed deeply in July 1995 when Jeffrey Bezos brought virtual book-seller Amazon.com online. This new idea of online book-selling company changed the whole consistency of the environment. The industry which works in book-selling environment was relatively stable because there were so many book publishers and individual book- sellers. Actually the market was lovely, enjoyable, comfortable and non-price competitive. In such environment, all companies were enjoying good revenues and profits. However; Amazon.com made a great change all of these. By being first in online book-selling business, Amazon.com could pick all of the advantages. It could also be called “first-mover advantages”.
In 1996, there was an important strategy which was made by Amazon.com to attract new customers. Amazon Associates programs were implemented. Any person or small business that operates a website can become affiliated to Amazon by putting an official Amazon hyperlink to Amazon’s website on its own website. If a referral results in a sale the Associate receives a commission from Amazon.
Amazon is a virtual company which can use the Internet and World Wide Web to sell customers around the world. However; the ability to enter new overseas markets was limited by a major factor: Amazon.com offered its customers the biggest selection of books written in the English language so that an obvious first choice would be the United Kingdom in 1996 followed by other English-speaking nations such as Australia, New Zealand, India and Germany in 1998. Language can be accepted as one of the biggest cultural difficulties.
In 1999 Bezos began to search for other products that could be sold profitably over the internet. One of these growing sectors was music CDs. From 2000 on, it expended its store fronts and began to... [continues]
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