Amazon Case Study
Questions for discussion:
1. What is the lasting legacy of Amazon.com? ...
With that in mind, I think the lasting legacy of Amazon is going to be imperative to the rapid growth of the internet. ... What did Amazon.com get right and what did it get wrong?
Amazon’s history is minuscule compared to that of most corporations, so to explain what they did right and wrong is merely an example of how companies start with a learning curve. ...
The first decision that Amazon did that was beneficial was to become an online retailer only, not a bricks and clicks store. ...
The next beneficial decision that Amazon made was to have a customer-centric vision. ... Instead of the customer trying to navigate through someone else’s site, they could design their Amazon around his/her own preferences.
One of Amazon’s competitive advantages at first was the size of their products, books were easy to ship. ...
Other areas where Amazon has faltered were early on. ... Should Amazon have remained an online bookstore? ...
It is not clear if Amazon made the best choice when electing to diversify, but its decision was unwavering. ... This is one area where Amazon has not succeeded. ...
The next advantage Amazon exemplified by diversifying was the technology start-up cost. ... This is a huge benefit, could you imagine starting an online company without the technology costs, well this is what Amazon did. ... Can Amazon.com successfully compete with bricks and clicks stores such as Barnes and Noble?
I think the real question is can brick and mortars compete with Amazon? ...
The reason I believe Amazon can exceed the bricks and clicks bookstores is product diversity. ... The size of Amazon’s networks is enormous. ...
One competitive advantage Amazon has over BN is that they have a very successful advertising design. ... Amazon pays for other websites to advertise their products on the affiliate’s site. Once the customer buys a product from being referred by an affiliate, Amazon will pay the affiliate 5-15% of the sale. This is unique marketing in that Amazon only pays for advertising on the products that were purchased. ... The affiliate can type in a keyword, let’s say “baseball”, and Amazon will give them 5-10 different banners for the affiliate to use for advertising on baseball books. ... They also give out Amazon search boxes and numerous logos and graphics for the user to choose from. Amazon has already signed up over 200,000 Associates! ... Amazon will host your product on their storefront for a monthly fee and a sales percentage. ... It also serves as a way to take business away from small companies starting on their own and competing with Amazon.
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