Amazon It Strategy Essay

1237 words - 5 pages

IT strategy of AmazonIntroductionAmazon a company which is truly synonymous to the gigantic river it has adopted name from. A company which started as book selling company now has almost everything in its selling portfolio. The company's on line profiling "" started as an online bookstore soon diversified its operation in selling into DVDs, VHSs, CDs, Video & MP3 downloads/streaming, software, videogames, electronics, apparel, furniture, food, toys and jewellery. Like a river looking new paths during its course Amazon has also started producing consumer electronics notably the Fire Phone, Amazon Kindle e-book reader and the Kindle Fire tablet computer and is the leading cloud ...view middle of the document...

Unlike the concentrated music industry, no brand could have the power to freeze out the bulging new entrant.Product: A book is a universal and simple object it does not have to be accurately described. Book distributors have already started exchanging digitalized listingSearch: The biggest advantage for Amazon was emergence of search engines as it has made it easier for customers to find books among the entire database. Amazon has by virtue repeatedly appears first on Google's results page.Buying Power: The great size has enabled company with better ability to negotiate volume discounts. Unfortunately many suppliers ignore at their own risk.Brand & Trust: Trust of the brand is hard to earn and could easily vanish but Amazon through IT integration dint let that happen.Cost Management: The cost management has been integral part of Amazon and IT has helped them reduce their variable cost.Digitally driven supply chains at Amazon enable it to grow from one 400 sq feet garage in 1995 to 50 fulfilment centre of area 2600000 sq ft by year 2010. This is kind of growth Amazon were able to amplify.Strategy for Massive InventoryBuild: Again and again, Amazon has simply created a new category. Even though VentePrivée was the market leader. In May 2011, Amazon launched My Habit,.Buy: When the competitors are already well established and its uphill to get better through new venture, Amazon may acquire an incumbent. Quidsi (Diapers + Soap) bought for $540 m in 2010.Partner: In its view to forward integration markets, Amazon offers its technology service and e-commerce expertise to third parties. Such as launching a co-branded web store with Toys "R" Us.Technology: The technology has been cutting edge with their IT enabled supply chain and autonomous robots.Synergy: Legendary customer service: Ranked Amazon #1 in 2010 (dedicated customer service Twitter account) One-of-a-kind customer-centric culture with highly skilled employees Niche markets for 10 years before acquisition 97% of sales were...

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