AMAZON

Managing Strategy - Amazon

Managing Strategy - Amazon

Introduction

The paper aims to recommend the ways through which Amazon can manage its strategies in order to effectively survive in the competitive market of online trading. The industry of online trading is expanding day by day. The existing competitors are devising new strategies where as new players are coming up with new ideas. Keeping this in view, Amazon should maintain its strategies to attract more potential customers and to keep good relations with the existing ones (Pavlou & Gefen, 2004, pp. 37-59).

Amazon.com carries perhaps the most expansive policy development in the history of the business. It seems as if the company wanted at the beginning of the internet shopping market to seize for them and monopolize as much of the area. Losses at the expense of long-term growth of the company is breaking records in sales and enter newer areas of internet business, absorbed another smaller companies and developing geographically (Seybold, 2008, pp. 202 - 213). Amazon's expansion does not occur so rapidly. The company, in contrast to Amazon does not diversify its business, but enhances the number of categories is in organizing the auction.

Background

Amazon is one of the major players in the online trading industry. It faces fierce competition with a number of key plays. One of the major competitors of Amazon is E-bay. Amazon manages millions of proposals and uses a database to entertain the customers (Kaplan & Sawhney, 2000, pp. 97-103). Database content is dynamically adjusted to the extent that both buyers and sellers enter their personal identification information and information about the products. When the goods are put up for sale, the seller provides a description of the goods, a list of keywords, the reserve price, date, and personal data. This data is used to represent the product in the list, which sees the buyer. Auction sale process begins when the seller registers description of goods offered for sale and will introduce the relevant information for registration. Seller shall determine the minimum starting price. If potential buyers feel that this price is too high, then you cannot get a single offer. In many cases, set the reserve price. Sellers can set a reserve price higher than the starting price. If no proposal is to reach the reserve price, the auction will be declared invalid (Timmers, 1999, pp. 121 - 130).

Amazon much more likely to use credit (or in the language of finance: use of leverage). Even at a very liberal standard level of debt the company seems to be too big. However, the Company does not intend to slow down the rate of growth and improve its balance sheet as long as investors are buying the shares and bankers lending (Kaplan & Sawhney, 2000, pp. 97-103). Amazon.com game with a great rate - either wins or sinks together with other big funds. More like gambling than to do business. Against this background, Amazon looks quite conservative with its growing revenue, while consistently positive account of the ...