Amazon And E Commerce Essay

821 words - 4 pages

First of all, Amazon was founded in 1994. It took the advantage of the emerging period of Internet to develop its online shopping industry. People from all over the world, as long as they can get access to the internet, they can look through the website of Nowadays, it’s a common sense that online shopping accounts for a lot of share in the market, but the managers didn’t knew it at the very beginning of the emerging of internet. As a result, the managers in Amazon had a very good foresight of the development of online shopping. Moreover, they create innovative site features to cater to the taste of consumers. Consumers can search some inside page of the book, and the searching ...view middle of the document...

This is also Amazon’s most popular alliance and advertising strategy.

Thirdly, more detailed talk, Amazon developed a lots agents and distributors to support its huge international distribution services net. It needs to find more firm partners to expand their business, because only based on the M&A is not enough at all. As we know, Amazon was always increasing it distribution centre all around the world. It keeps looking for agents to take part in the e-commerce business. There are two kinds of popular agents or partners more precisely, in the whole business activities of Amazon. One is that Amazon cooperates with the local postal system to help it deliver the merchandises. It’s in fact, an outsourcing which can cut the expense on logistics and having the professionals do it. Another is that Amazon attracted thousands of sellers as well. In this case, Amazon acts as an intermediary, only provides the basic platform and guarantees the transaction and trade to be safe and order.

There would be also many barriers for Amazon to expand its internationalization strategy. The most significant one is the culture differences. Different regional market has different preference and price sensitiveness. In this kind of cases, the love of variety is particularly prominent. Indeed, sometimes price discrimination did make sense when entering a huge market. It is easy to understand that a small market has a limited...

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