November 11, 2012
More than any other corporation of the Internet age, Amazon symbolizes the up-and coming philosophy of business strategy. It is the General Electric of our times, and Bezos is the Jack Welch. (Rao, 2011). One of the few winners of the dot-com bubble is Amazon. According to Johnson (2010) “Amazon survived the dot-com bust because it had a viable and innovative business model built around a market-changing customer value proposition and a radical profit formula, which upended the staid book industry.” (p. 1). Amazon’s strategy is like a chess game. Every asset is a piece in a game of chess. Amazon’s strategy consists of a multitude of options for retailers, small businesses, and individuals to sell their items. Amazon then receives a portion of the sale. Amazon employs a multi-level ecommerce strategy. Anyone can sell almost anything on Amazon.com. On Amazon.com you can find merchandise sold by Amazon, individuals, third-party sellers, and small companies. You can find refurbished goods, new goods, and used goods. It is the focal point for the sale of merchandise. Amazon receives a percentage on all sales made using any of Amazon services. Based on the aforementioned, I believe that Amazon’s strategy is a wise strategy. There are a number of components to Amazon. They offer a program for individuals to become their associates. This allows the associates to build a website off of Amazon, move products from Amazon’s warehouse to their website, sell those products and make a commission. Amazon allows other retailers to use Amazon.com as an outlet for their online sales by leasing space to these retailers. Amazon also has Amazon Marketplace, Amazon Auctions, and Amazon zShops. These sites allow smaller companies and individuals to sell or auction new and used goods. There is also Amazon Advantage. Amazon Advantage allows individuals that makes their own music CDs or writes...