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 "Amazon.com" 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 Amazon.com 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...

Find Another Essay On Amazon IT Strategy

The Success of Amazon.com Essay

830 words - 3 pages mention by Bezos himself derives more sales and gives Amazon a competitive edge over its rivals. It is because of the discount strategy that Amazon has been able to beat all the big competitors like Barnes and Nobles. Amazon's strategy over the years has been to spend whatever it saves on expenses on discounts and even more discounts. The company knows that it will get a better return investing in lower prices.Few companies in the book business can

Amazon Essay

2511 words - 10 pages means more than $500M in revenues for the entire fiscal 2008 for Amazon coming solely from its Web Services.' From this statement, it is very obvious that Amazon Web Services has turned out to be a very thriving strategy for Amazon.com to increase its sales and profits.2.3 SecurityThe most fundamental step for an E-commerce business to grow vigorously is to have a reliable and secure connection so that shoppers need not worry about credit card fraud

e business amazon

1416 words - 6 pages market is possible.When visiting Amazon, however, the number of products and services it offers is absurdly numerous, and meanwhile, Amazon has sufficient product and service differentiation to keep customers loyal. It would be virtually impossible for a new company to reach the magnitude of inventory, distribution network, economies of scale and status that Amazon maintains. Without well-developed distribution network, geographic factors will

The Amazon Ecosystem

2567 words - 10 pages has posed a serious environmental pollution threat in the Amazon Rainforest environment. When gold is mined in Brazil, it is separated through the use of mercury into valuable metal. As a result of the use of mercury, the soil, air, and water in certain regions of Brazil have become heavily polluted with mercury, and the surrounding environment suffers as plants and animals are poisoned (Amazon, 2002).A strategy local governments, businesses, or

Amazon Case Analysis

5207 words - 21 pages it difficult for [Amazon] to compete in the long-term as it would hold a significant competitive disadvantage in terms of outbound distribution costs" (D'Eathe, p.2). "However, Moody's believes that management's focus on achieving profitability, and a clearer strategy to harvest investment in existing operations rather than expend capital on new businesses, holds the potential for positive cash flow within the medium term. Amazon invested

Amazon case study

3392 words - 14 pages improve the performance of their inventory management by adopting location postponement. Postponement is the strategy adopt by the companies to build agile supply chain. In postponement amazon centralized their inventory in one strategic location and from that location they supply the products to the desired locations. This process make the supply chain faster because the inventory will stored in a centralized location and it can be quickly

External & Internal Analysis of Amazon during 1997. Example of a Strategic Management in the New Economy

2445 words - 10 pages , it tried to keep the pace with delivering a high level of customer satisfaction. This strategy has established a reputation for reliability, courtesy and value; and continued to build market share.Exploitation of data warehousing. The Amazon made a good use of its customer information. The customer database contained useful information, including who bought or is interested in what type of merchandise. Using data mining techniques and

SWAT Analysis of Amazon's Original Business Plan

2278 words - 9 pages and it burst at the start of the 21st century. Amazon survived the crash in stock prices but was far from unaffected. In December of 1999 their stock price peaked at $106.68, but in September of 2001 their stock fell as low as $5.97. However, that same quarter Amazon posted its fist profit of $5 million, or 1 cent per share. Amazon stock prices from 1997 to 2004 Bezos’s strategy of slow growth is about one thing, competitive

Amazon case study

2473 words - 10 pages portfolio with different product categories. (AmazonGeniuscom, 2012) It is obvious that 20 years of experience in the market, good decisions and strategic innovations make them one of the most powerful player on the market. Market position: According to Alexa.com Amazon is ranked as the 10th most popular company in a global rank and the 5th most popular in the United States. More than 11million people visit the Amazon.com per day and spend more

Amazon Kindle Marketing Analysis

2000 words - 8 pages give satisfaction to its partner book retailers such as Barnes & nobles, Borders, and Google by complying with all legal formalities such as book conversion standards and media distribution criterion for preventing book piracy and substandard reading material. But, there is an imperative need to follow some effective ways of advertisement and consistent pricing strategy to confront its competitors. Despite all these, Amazon Kindle is suffering from some weaknesses but still it has been revolutionizing the book businesses and the reading patterns of its customers by preventing the book piracy in order to supply qualitative reading material.

Amazon.com

1071 words - 4 pages companies, Borders, that will, hopefully, be beneficial for both. Borders acquires Amazon technology (a very sought after commodity) and Amazon acquires a 'brick-and-mortar' outlet for Internet sales. While in the store to pick up orders made online, it is assumed that shoppers will also look and buy from Borders (Davis, 2001).There are several strategies that are often chosen as a means of pursuing an advantage over competitors. A company may

Similar Essays

Amazon.Com And Management Information System Essay

1269 words - 5 pages early pioneer in establishing software customer data for collaborative filtering purposes. In order fulfillment, Amazon has utilized its high-tech warehouses capabilities to reduce its operation cost. Through retailing strategy, Amazon has formed partnerships with the famous retailers for instance Target and Borders Books. It is a win-win situation as its competitors-partners are allowed to offered similar items via their linked websites at their

Amazon And E Commerce Essay

821 words - 4 pages ) It means including Yahoo! And the five most often visited the site Excite, has become the Amazon Bookstore cooperative partner. 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

Critical Appraisal Of Amazon.Com Current E Business Strategy And Activities

1477 words - 6 pages advantage of this approach is that the incremental costs to expand the business, whether to multiple product line or geographically, are small. This strategy of perfecting before scaling helps in long-term survival and growth of the company. Customer Focus Since it's beginning, Amazon has always kept focus on the needs of its customer and never lost sight of it. This gives Amazon a strong foothold of the internet retail business. Playing on this

Amazon Business Process Essay

790 words - 4 pages , Amazon does a fantastic job making their business process to be easy and efficient for both the customers and for internal affairs. II. Innovation Strategy Amazon’s innovation strategy is heavily influenced by their vision, which is “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” It is clear from the many interviews and articles: Bezos