It provides Amazon.com with the capital to continue to branch out into new areas. Acquisitions of companies such as Kiva Systems (discussed previously) and other on-line retail companies such as Zappos, Quidsi, Livingsocial, and Lovefilm have increased the overall capability of Amazon.com. These acquisitions create a whole new list of opportunities for the corporation, which in turn adds more capabilities to the Kindle Fire
Big data has directed organizational change in allowing Amazon to expand from an online book store to an internet giant. Revolutionary application of big data has allowed Amazon to create superior service quality while motivating employees by providing real time information to solve customer issues. Big data has strengthened Amazon’s competitive capabilities by pioneering the application of big data and charging a monthly fee to smaller businesses
The internet allows users to search out products with ease and makes doing research on given products that much more effective. Deploying internet technologies can take attention away from focusing on core business functions; however the impact of the internet on marketing and advertising has enabled businesses to effectively communicate with consumers and demographically hit a broader audience. Marketing and advertising in the twenty first century have taken a whole new route in hitting the targeted market. The goal of any company when marketing a product is to sell that product to anyone that sees its advertisement. Being able to effectively market is what will keep products moving off the shelves for consumers to buy, as well as allowing businesses to thrive in these times of such economic insecurity.
The next few years will see a lot of B2B companies on the Internet developing new designs of supply chain management. Many companies have already found a lot of opportunities in supply chain integration. They are achieving a lot success in efficiency and are gaining advantage over their competitors. While companies are making quick money after the internet bubble burst, the internet has also helped expand supply chain management. The Internet has created more opportunities for companies to buy online and also open their own internet channels.
Amazon.com - A Giant of E-commerce EXECUTIVE SUMMARY Electronic commerce industries that make “e-commerce” possible are growing at breakneck speed, altering not only how Americans, but also the global marketplace produces, markets, and acquires goods and services. In the e-commerce industry, it is generally agreed that Amazon.com provides one of the best business model “benchmarks” today. Amazon.com came online in the summer of 1995 with a mission to use the Internet to transform book buying into the fastest, easiest and most enjoyable shopping experience possible. According to their home page Amazon.com “since the summary of 1995 our customer base and product offerings have grown considerably, millions of people in more than 220 countries have made Amazon.com the leading online shopping site.” When you visit Amazon.com, you can buy books, music, videos, and more--by a click of the mouse. While the company has yet to turn a profit, they have revolutionized e-commerce by making customer interaction and feedback part of their brand image.
Amazon and Ebay: The New Face of Web Services CASE STUDY QUESTIONS 1. What are the purpose and business value of Web services? The principal purpose of Web service is create the exchange of data between business (for example e-commerce or e-business) in real time via Internet, and this way a business might share with its costumers, suppliers, and other business partners all the necessary information. As a result, the use of Web serving by any organization, which wants grow up and support a place in the market, is the best tool. This is because the increasing and development of the technology and communication (or by the globalization's growth) the use of the Web to make business is increasing too.
This will definitely increase the current earnings of the Amazon.com. The company is facing major shifts towards cloud computing and system infrastructure. As online shopping becomes more popular processing orders and distributing merchandise becomes more complex and difficult. Growth of market in various countries traded by Amazon.com including Europe will need taking the precautions to deal with increase in demand. (Schepp, 2009:12).
The company has been very thorough in creating and placing distribution centers in order to increase profitability of the company. As the company continues to expand around the world and into once unexplored niches of the market, it will continue to implement the same logistical strategies that have been so successful in the past. With many companies around the world using Amazon’s model in their own businesses, it is evident that Amazon’s strategy is successful and capable of growing with the ever-changing culture of running an online marketplace.
Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it.
Conclusion The internet has played a huge part in transforming industry value systems through globalisation and supply chain integration. One of the biggest benefits of using the internet for these systems is the ability to communicate in real time between supplier, manufacturer, courier , distributer and ultimately, the customer. It also improves service levels between all parties and reduces logistics costs. However the advent of global manufacturing companies has led to a number of new challenges. The major problem for large manufacturing companies is storage at their facilities of raw materials and finished products.