Case Study

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Unit VI Case Study: Amazon.com
By Chanda Maneval

Amazon.com’s success online is attributed to many reasons: first they are a massive e-commerce pure-click business, meaning that they exclusively use the Web site to facilitate or conduct the sale of products (Kotler & Keller, 2012). Being a pure-click company allows products sold on Amazon.com to have a lower price than those found in the brick-and-mortar companies due to lower overhead prices (McArdle, 2012). They also have about 40 warehouses and can build one in less than a year; shortening the shipping time and bringing them closer to the customers (McArdle, 2012). Everything Amazon.com does is customer and third party merchant centric – they invest in technology to make the shopping experience easier and faster (Kotler & Keller, 2012). Amazon.com has built and maintains a huge customer base; they manage customer information to design recommendations for each customer and developed a “Customers Who Bought This Item Also Bought” section. For example if you buy one product they will offer/suggest another similar to being offered fries with your burger (First, n.d.). Another reason Amazon.com is successful are the many things they continue to do such as building a set of online service platforms for developers/third-party merchants (Rosoff, 2007). These platforms make it easy for any merchant to create a virtual store with low risk and no additional cost (Kotler & Keller, 2012). An example is Amazon’s flexible payment services, which allow a merchant to accept money from customers without having to build the e-commerce system from scratch (Rosoff, 2007).

The Kindle will revolutionize the book industry for several reasons some of which will be discussed below. Obvious reasons are that customers can take hundreds to thousands of books with them on a trip or simply a way to have a book collection at home without taking up massive space or the cumbersome weight of hard copy books. No more trying to decide which books you want to take with you on a trip or place on your bookshelves at home. The Kindle is your personal e-library with Amazon offering more than 22 million books, games, songs, and movies for purchase for your Kindle (Manjoo, 2012). To top it off, many of these are free with a subscription to Amazon’s prime shipping service (Manjoo, 2012). For seventy nine dollars a year, Amazon Prime subscription readers have access to the Kindle Lending Library with over a hundred thousand titles and can borrow up to one free book per month with no due date (Horn, 2012). Amazon has also extended the library selection from larger publishing houses to now allowing authors to submit self-published books, which eliminates the traditional publishing world, which also adds to revolutionizing the book industry (Horn, 2012). According to Amazon, users have borrowed more than a million of these exclusive self-published titles (Horn, 2012). Another reason the Kindle coupled with Amazon will revolutionize the book industry is it reaching back to the days of Dickens when authors use to publish or release books in installments – Amazon is bringing this lost art form back to life by launching serialized titles (Manjoo, 2012). All of these things together will create a grand experience for customers like none other in the book industry.

According to the CEO of Amazon.com, the way forward for Amazon is to continue to do what they do best, but do it better (Fowlkes, 2012). Amazon plans to continue improvements on its next generation tablets, product delivery, and market share explorations all of which will lead to retaining and building customer satisfaction. With the success of the Kindles, Amazon will spend money improving upon the Kindle to offer more perks that the customers are looking for all while maintaining a low cost (Fowlkes, 2012). With keeping with the motto of doing it better – Amazon will find new ways to get products in customers hand faster....
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