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

1477 words - 6 pages

Business strategies and activities play a very crucial role in the future development of the organization. These strategies become more important, in case of e-business organization such as Amazon.
Every organization uses different business strategies in order to remain in business. Some adopt customer- centric strategies; some uses strategies to maximize their profit. For a long time, many organizations have made quality as their selling point.
The goal of this report is to analyze the Amazon's e-business strategies and activities. This report also discusses the result of strategies adopted by Amazon and how far it has been successful.
Introduction
According to the definition of Whatis.com "E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners."[1]
In today's competing world, many organizations are rethinking their strategies in terms of the online business and its capabilities and culture. Organizations are taking advantage of the widespread web to buy and sell goods from other companies and recently from individual customers. Exploiting these opportunities of convenience, availability and widespread reach of the web or Internet, many companies such as Amazon have benefited from the use of web successfully.
What is Amazon?
From "EARTH'S BIGGEST BOOKSTORE" to "everything to everybody" to "Wall Mart of the Internet" to "World's most customer-centric company", Amazon has been tagged with these kind of labels by its customers and followers.
The reason for these many labels is because of the Amazon changing business model. Starting from Single-product, customer centric and an intermediary with little inventory in 1995-1997 to Multi-product, profit-making, Client-centered, investor, Services provider in 2000. Amazon has been changing its business model according to market conditions.
One indication of a smart company is to continuously change its business model; it is an indication of smart company and ultimately the smart management team. It is also an indication that the company is learning and adopting itself to the external and internal environment.
For the first time in year 2000, Amazon management has set its focus of making profit. Again, it is an indication of nothing but smart, opportunistic management that utilized its strength to grow. It is very clear that Amazon management team is very focused.
In order to meets its future targets, Amazon has implemented a restructuring plan. It will allow Amazon to reduce operating costs, reduce employee staff, and strengthen some of its fulfillment and customer service operations. According to the quarterly report released by amazon.com for quarter ended September 30, 2004 "There has been a steep decline in operating costs."[2] This has improved the performance of the company.
Amazon Business Strategies
Since its...

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