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Amazon.Com Business Model

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Amazon.Com Business Model
Amazon.com’s E-Business Model
Amazon.com was founded in 1994 as an online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon competes in a vast array of markets including: books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand.

Imagine if Toys-R-Us, the largest toy retailer began selling books or if the NBA began selling hardware online. The threat of consumer confusion would rise, thus bringing into question the value of the Toys-R-Us and NBA brands. Some analysts question the wisdom of Amazon.com selling products that are typically sold in the business-to-business markets. For example, you can now purchase industrial, laboratory, and scientific supplies from Amazon.com. (See Appendix – comparison and contrast chart of Amazon.com, Barnes and Noble, and Borders.)

Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

The study comprises of Amazon.com which started its history by selling books and now one of the online market leaders globally not only for books but products from various categories. Company started with a mission to be Earth’s most customer centric company. In order to become the largest and convenience online store for all, there are major problems or threat being faced by Amazon.com in succeeding its mission. The major problems are Amazon facing are and may be some of Amazon.com recommended solutions such as; technology integration and R&D, strategic cost analysis, differentiation, inventory, visionary & informative, keep customers in the loop on everything, shipping & delivery,


References: Amazon.com Annual Report. Website retrieved 26 April 2011.  http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual  Amazon. Website retrieved 26 April 2011. www.Amazon.com Barnes and Noble. Website retrieved 26 April 2011. www.BarnesAndNoble.com Borders. Website retrieved 26 April 2011.  www.Borders.com American Booksellers Association - Research & Statistics. Website retrieved 27 April 2011. http://www.bookweb.org/research/stats/389.html American Booksellers Association "Study Shows Anemic Retail Book Market". Website retrieved 27 April 2011. http://www.bookweb.org/news/pressroom/331.html E-Commerce Times
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