Amazon and E-commerce

It has many positive qualities that impact the industry. Technology simplifies the purchasing process. Since the industry is web based, it helps eliminate the nuisance of not having products when wanted by having the capabilities of placing orders 24/7 at any computer with web access. Technology will also standardize the purchasing process thus reducing processing costs associated with traditional processing. Capturing and maintaining customer data by Amazon.com will help increase productivity by being able to have fast data through put.

In new countries, Amazon needs either pre-determined national priority supporting the e-market development or strong governmental lobbying of internet-based industry to increase the governmental capacity to earn. In some instances, the corporation needs local political hierarchies to relax cultural or religious ideologies for facilitating conditions friendly to the e-commerce development. Economic Element Since the company deals in US dollars, fluctuations of currency can cause issues when selling via the internet. Currently, global economy is improving, and internet sales are expected to grow. When the economy suffers downfalls, online retail sales are one area that e... ... middle of paper ... ...8) Development of new marketing tools, such as commission for referrals, discounted and free shipping, and promotional offers.

That’s where Amazon Go pays off. Once built fully up to certain sophistication Amazon can sell this technology to other retailers. This enables Amazon to work as a technology platform providing this services to several other grocery stores. The proposition for other retailers is even more tempting— they will be saving the labor costs which is the biggest component of the store as well as improve efficiency. In the times when labor costs are increasing and labor availability is low, this becomes a twofold benefits package for retailers.

In this chapter the researcher is analysing the empirical findings by applying the theories of literature review. Consequently, this chapter will be helpful for writing the recommendations and solutions. 4.1 Porter’s Five Competitive Forces Analysis: The manufacturing process in online book industry is relatively simple despite deploying a highly modernized technology which means to have fewer entry barriers. Moreover, the pages made by E Ink Corporation are electronically displayed on Amazon Kindle like in Sony e reader, irex, iPod etc. In this regard there is a huge challenge to persuade more book publishers so that more books can be accessed on the Kindle.

Promoting such favorable business environment Amazon hopes to reinforce awareness and confidence in e-commerce customer population, as well as encouraging best practice among competitors. Amazon’s competitive threats come from other e-commerce, Web sites like: Walmart.com, Barnes & Noble.com, Ebay.com, etc. Amazon knows that customers are sensitive to product quality and price, and personal information security so at Amazon.com they can expect to benefit from all three offerings. Amazon.com has a world-class management team led by Mr. Jeffrey P. Bezos founder and company’s Chairman of the Board and Chief Executive Officer. He has exceptional knowledge of the industry.

They provide the reader with a cost effective way to purchase and read books. In addition to that I found an article from WSJ by Steve Johnson that stated “E-books would likely change the way we read, write and sell books in profound ways” (Johnson). This statement is entirely accurate, because we are currently living through the transition to the digital form of publishing. Besides being cost effective E-books have many other advantages compared to traditional books. E-books have made a big impact in the lives of students.

Amazon Creates Value for Customers Amazon creates value for its customers by offering customer satisfactory services by managing retail operations with efficient use of technology. Operational efficiency is the strength of Amazon.com and supports the management to maintain its competitive advantage and enhance corporate performance. Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers Amazon.com was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers Question 2) Who are Amazon.com’s competitors and how has it created its competitive advantage?

However, Amazon still face high industry rivalry established bookstores have well customer base, great brand recognition, brand awareness and so forth. Moreover, the established bookstores extend business to the Internet make industry rivalry greater. Also, for the completely online companies like Amazon, E-bay themselves, they have intense rivalry between each other. The threat of new entrants is high since it is inexpensive to set up an online store compared to set up a physical bookstore. Also, the bookstores can easily expend their business to the Internet since they have resources that obtain their physical store business.

Amazon and Walmart, who continually invest in technology are likely to remain competitive on price, and will be able to offer services which make goods available to consumers in efficient ways, are likely to e... ... middle of paper ... ...distribution channel would lower Amazon’s labor costs, thus increasing its capacity to further reduce prices of products. As a result, traditional retailers would face even tougher competition against online retailers. Online shopping is set to radically change the dynamics of the retail industry with increased consumer reach. It is expected to continue flourishing with mobile transactions increasing and online retail sales projected to reach $434 billion over the next four years. Even big box retailers are entering in to the e-commerce market.

Web services to Amazon, eBay, and their developer partners is that they expand the possibilities to any company that wants an e-commerce, they present tools and technology for integrating web platforms with web services, they create software apps that expand the market of the clients, Amazon offers different categories as product details, search, capabilitie... ... middle of paper ... ...cessful. In addition, it because too many challenges for Web services business, they need to focus on core business processes. An opportunity for outsourcing, offshoring, and application hosting company now provides many options that allow them to concentrate. In addition, they must provide the service website that can attract customers to use. Moreover, the Web services paradigm is expected to transform the Web into a distributed application-to-application networks.