Advantages of Open Door Policies

Topics: Electronic commerce, Amazon Web Services, Online shopping Pages: 2 (517 words) Published: September 27, 2009
Nowadays, Amazon has taken drastically changes in sharing their business database. The underlying data including product descriptions, prices, sales rankings, customer reviews, inventory figures, and countless other layers of content that powers the $7 billion online retailer is now open for public. Amazon is opening its site to outside programmers, providing access to databases and features that have taken years and something approaching $1 billion to develop over nearly a decade. It is not just Amazon Company who did open their database access. This strategy has been followed by eBay, Google and even Yahoo.

Why is this happening? Why do the company be secretive one minute but open the next. What is behind the open door policies? There are actually several underlying benefits that encourage them to do so. First advantages of opening their database access to developers and entrepreneur is all that bottled-up intellectual property becomes even more valuable once outsiders get their hands on it. Amazon also believes that their data could triggers new websites and businesses that would expand the company's already gigantic online footprint and ultimately drive more sales. For example, since the company launches its first project called Amazon Web Services, more than 65,000 programmers and businesses, made good use of that data. They are actually building moneymaking websites, new online shopping interfaces, and an innovative service for thousands of Amazon’s independent sellers.

Furthermore, they also perceived value in the Web's great new beyond. Through open access, it will merge thousands of other businesses selling symbiotic products and services. Other benefit that the company such as Amazon and eBay is increasing chances that developers and businesses will organize around their systems. In addition, this brilliant yet risky move can help the company to get their experimental R&D for free. They simply build a platform and let others build all the...
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