Running head AMAZON.COM’S E-BUSINESS MODEL
Amazon.com’s E-Business Model
Assignment #2 Submitted in Partial Fulfillment
of the Requirements for the Course
BUS508: Contemporary Business
Amazon.com’s E-Business Model
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 internet has become a part of most everyone daily life for many years now. In addition E-Business has appeared for several years now. E-Business refers to conducting business over the internet. E-Business accounts for more than one-quarter of the value of all manufacturing shipments, sales and revenues, totaling $1.3 trillion (Boone & Kurtz, 2011). In 1996 a famous retail company in E-Business was launched called Amazon.com. Amazon.com sells various products like electronics, books, music, DVD’s, housewares, PC’s and cars. Amazon.com is the biggest retailer in E-Business, it has expanded its business in more than 220 countries. Amazon had first started out as a company had first started out as an online bookstore. While selling books Amazon was making a decent profit, but Amazon leadership did not feel that they were not making as much money as they had hoped to make for the first year. Also a lawsuit from Barnes and Noble prompted Amazon to come up with a way to better its corporation. In 1999 when the E-Business boom began Amazon decided to jump on the bandwagon and emerge itself into the world of E-Business. Wen Amazon began to emerge into the world of E-Business this was the best thing they could have done. By doing this they begin to make huge profits and turned into one of the world’s leaders in E-Commerce. Amazon was able to take over the E-Business because they began to offer to their customer’s better deals than the other E-Business corporations could offer. They were truly focused on customer satisfaction. The firm uses sophisticated inventory tools that help keep its costs down and allow it to wait for favorable supplier prices before placing orders. Amazon
was able to restock when nobody else was restocking. As demands was falling
off a cliff [because other retailers had placed holiday orders much earlier], they
could get better rates (Boone & Kurtz, 2011 pp. 223).
The owner Jeff Bezo understood that in order to remain competitive in this business they had to first focus on the needs of the customers. Understanding what customers want and need is was very beneficial for the success of the company. Also expanded its merchandise at a lower cost would also attract more customers to order from Amazon. Another benefit of Amazon was that they had partnership with numerous transportation companies and could provide fast and accurate service to their consumers. Amazon has experienced many negatives ratings from some of their customers because of some of the defective merchandise they have received. Because Amazon has partnership with many consumers to sell their merchandise Amazon does not really know what a person may be receiving. Consumers only know that they ordered this merchandise from Amazon and if something is wrong Amazon should be responsible for the product. I fully understand their complaint. I fully understand the consumer’s complaint. I recently ordered a Colby MP3 player from Amazon and when I got the MP3 player it did not work. I looked all over the internet to try and find a contact number for Amazon but could not. I called Colby and went through some trouble shooting techniques before it was determined that the part was defective. The Colby told me to return the merchandise back to Amazon and they would replace it. Although once I went on Amazon website to find out how to return the item it was fairly easy. I felt as though instead of me returning the item back to...
References: Boone, L., Kurtz, L., (2011). Contemporary Business. Hoboken, NJ: John Wiley and Sons Inc.
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