Amazon or more specifically Amazon.com is one of the world’s largest retailers online. In the beginning amazon started selling books at a low cost. They now offer hundreds of thousands of products and hundreds of vendors with their own store fronts. This “evolution” has now provides a way for consumers to get what they want for a small shipping fee or with Amazon Prime free shipping. But have they moved away from their core competencies of being a leading online retailer? What are the components of their database and what management issues will they encounter?
Even though they have moved from books to other products and services they have maintained the position of selling online at a low cost. This focus and commitment to its core beliefs led to 3.7 Billion in revenue for 2001 (2011 Amazon shareholder report). The changing economic climate helped Amazon with this change from bookseller to just about any product or service you can imagine. Their core competencies or beliefs are customer convenience and accessibility, massive selection, quality of content, effective search tools and great price (Amazon 2012). These competencies, when looked at in a basic view, are still what the bookseller turned giant started with and have not changed. With so many directions to move in the online world Amazon need to add to their beliefs rather than change them.
Amazon stores massive amounts of data, tracks information and consumer trends. The even offer data services to businesses and consumers through their website. In 2002 Amazon upgraded its database to Excelon Corp’s ObjectStore. (Informationweek 2002) This upgrade improved update time form 8 hours to two minutes. The data collection is a direct result of transactions and page views that take place through their merchants by the consumers. The data provides them with information and provides statistical reports that reflect the transactions that are made pages that are viewed. They also use these...
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