According to the definition of Whatis.com "E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners." In today's competing world, many organizations are rethinking their strategies in terms of the online business and its capabilities and culture. Organizations are taking advantage of the widespread web to buy and sell goods from other companies and recently from individual customers. Exploiting these opportunities of convenience, availability and widespread reach of the web or Internet, many companies such as Amazon have benefited from the use of web successfully. What is Amazon?
From "EARTH'S BIGGEST BOOKSTORE" to "everything to everybody" to "Wall Mart of the Internet" to "World's most customer-centric company", Amazon has been tagged with these kind of labels by its customers and followers. The reason for these many labels is because of the Amazon changing business model. Starting from Single-product, customer centric and an intermediary with little inventory in 1995-1997 to Multi-product, profit-making, Client-centered, investor, Services provider in 2000. Amazon has been changing its business model according to market conditions. One indication of a smart company is to continuously change its business model; it is an indication of smart company and ultimately the smart management team. It is also an indication that the company is learning and adopting itself to the external and internal environment. For the first time in year 2000, Amazon management has set its focus of making profit. Again, it is an indication of nothing but smart, opportunistic management that utilized its strength to grow. It is very clear that Amazon management team is very focused. In order to meets its future targets, Amazon has implemented a restructuring plan. It will allow Amazon to reduce operating costs, reduce employee staff, and strengthen some of its fulfillment and customer service operations. According to the quarterly report released by amazon.com for quarter ended September 30, 2004 "There has been a steep decline in operating costs." This has improved the performance of the company. Amazon Business Strategies
Since its beginning, Amazon has adopted various e-Business model to increase its customer base and recently set its focus on making profit. Given below are the strategies adopted by Amazon. Expertise and scaling
Amazon has a track recording of first gaining expertise in the market and then scaling into other areas. For ex. Amazon started with a web-based bookstore model and after gaining expertise in various operations expanded to other segments and geographies. Another example is, after capturing the US market; it expanded its business to Europe- U.K, France and Germany and then to Japan. One advantage of this approach is that the incremental costs to expand the business, whether to multiple product line or geographically, are small. This strategy of perfecting before scaling helps in long-term survival and growth of the company. Customer Focus
Since it's beginning, Amazon has always kept focus on the needs of its customer and never lost sight of it. This gives Amazon a strong foothold of the...