Amazon.Com; A Case Study.

1060 words - 4 pages

IntroductionThe lunched of Amazon.com in July of 1995 was the creation of a new and bold way of doing business on the Internet. Amazon.com forced the traditional physical world brick and mortar retailer in the book industry to change the way they target the industry's consumers and then epitomized Business-2-Consumer e-retailing. Although, Amazon.com started as an online bookstore, according to eRetailNews 2000-11, ISSN; 1529-2959, they have since spread its wings into other industries such as music, DVD, toys, videos etc...Subsequently, this has created a multitude of direct competitors for Amazon.com in several different industries. As Amazon.com continues to grow and create new alliances with other industry's leaders, the competition for global online market share grows intensively. As a result, Barnes and Nobles online store barnesandnobles.com is now the leader in online book e-retailing.In this section of the paper titled Amazon.com, I will discuss Amazon.com SWOT analysis based on a report conducted by eRetailNews. The Internet Retailing Report titled "New vs. Old: The battle between traditional retail and dotcoms", eRetailNews 2000-11, ISSN: 159-2959. Additionally, I will discuss Amazon.com marketing and business strategies, the trends and forces in the online business-2-consumers industries, Amazon.com technology and financial information.Amazon.com SWOT Analysis (according to eRetailNews, The Internet Retailing Report, 2000 - 11 ISSN: 1529-2959; Titled: New vs. Old: The battle between traditional retail and dotcoms - Mini eRetail Scorecard)StrengthsWell established web brandLoyal customers base of over 12million shoppersDistribution facilities to handle growth and fulfillmentLeader in use of technology to delivery targeted contentExcellent offline customer serviceBuilding international presence in markets outside of the USAHas moved away form being a low price supplier of books toward a focus on delivering outstanding service at a priceWeaknessesAmazon.com brand has been diluted by entering a wide number of product segments, increasing competitionNeed to restructure business to drive toward profitability has meant upward pressure on pricesNo offline brand presenceInsufficient community added valueNow competes as a mass merchant, allowing specialty stores to identify with particular segment, e.g. Barnes and Noble - books, eToys - Toys, Home Depot - Tools.Customers need to return products through third parry delivery services, even for ToysRUs merchandiseNo telephone supportOpportunitiesOpportunity to establish itself as a global mass merchant leader in the online shopping arenaBuilding community events around the brand would help create brand affinity as well as loyaltyEstablish 24x7 hour telephone support for customers and order processingFrequent shopper discounts will increase retention and repeat purchasesFurther offline partnerships can potentially help Amazon by allowing customers to return products offline storesThreatsSuccess in...

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