Amazon.Com E-Business Model

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  • Topic:, Online shopping, Retailing
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  • Published : March 18, 2011
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This paper will discuss how the largest retailer of books, has expanded into many other markets besides books and maintained profitability. It will examine how Amazon was able to maintain its brand identity and also look at whether Amazon should consider retail locations. Furthermore this paper will compare and contrast the websites of, Barnes and, and according to the functionality and design and other criteria.

Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books.

Amazon has not lost its identity by expanding into markets beyond books however has matured in its appearance. In the past Amazon was initially just an online retailer of books but now Amazon is a retailer of clothing, jewelry, electronics, shoes, and hardware just to name a few. By Amazon expanding into these other markets it has increased its market share and profit over the last five years. During this recession time many businesses are closing or losing sales however Amazon had a profit increase of 9 percent on sales that rose 18 percent. (Boone 2011) Amazon has stayed consistent with its strategy of the customer being the focus. Also Amazon has continued to adhere since its inception that “they must fill three enduring needs: vast selection, low prices, and fast, accurate delivery”. (Boone 2011) Being able to continue with those philosophies, expand into many markets and increase profits shows that Amazon has definitely not lost its identity however just grown into a better online retailer beyond books. It shows signs of maturity like a cliché says that when you can change yet remain the same. Recommend what Amazon should do to protect its brand.

Amazon can protect its brand by continuing to attract and keep customers by meeting the buyers’ expectations. (Boone 2011) So Amazon will need to continue to offer low prices and having great merchandise delivery and return turnarounds. Also Amazon will have to make sure that their website is continually functional for most viewers. It helps that consumers see reviews of products before purchasing most of them which aids in their decision to order from them versus another retailer. Amazon will always need to be researching and surveying consumers in order to stay ahead of the game. This will aid to make sure what is needed and when it is needed in the future for consumers.

Amazon can also protect its brand by being open to change or creating new innovations and fresh ideas to its consumers. Amazon created an edge to its brand when it created the Kindle. The Kindle, the electronic-book reader, has become a million dollar best seller. (Boone 2011) Also making sure that the website’s content and design is effective will aid in protecting the brand of Amazon. Because Amazon’s brand is through the medium of a website then the importance of the effectiveness of this website and the content of it makes a difference in the mindset of many consumers. One can’t afford to loose too many consumers because they weren’t able to navigate or find a product on the website. Also if Amazon continues to have good partnerships like the one that they have with Target or Sears then that also will help protect the brand of Amazon. The more exposure that consumers have with Amazon then it will definitely be a common website of choice.

Recommend what Barnes & Noble and Borders should do to recapture some of their online market share.

Barnes and Noble would have to implement some changes in order to recapture some of their online market share. They probably would first need to study and research every tactic that Amazon has utilized to capture the market share that they have at this time. Then compare and contrast those strategies with their own strategies to see what they could easily implement now without...
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