AMAZON

Amazon



Amazon

Introduction- Amazon Analysis

Amazon is the leading e-commerce firm in the world that strives to set its standards for online book store. The overwhelming success of Amazon is credited to Bezos who made smart use of technology and understood the concept of online business. With extensive market research, product investigation, customer needs and demands etc. Bezos found a competitive advantage in selling books due to the fact that it required low sum transaction and gaining huge market segment of low risk buyers who makes anxious buying of products online. Through outsized market share in books, integrated strategies, customer services, product delivery and better business acquisitions Amazon reaped the fruits of its hard work thereby standing as a brand icon in e-commerce industry.

The Blue Ocean created by Amazon is the result of its differentiated and innovated customer service delivery for its book business. Firstly, it had made easy for customers to search books online with millions of titles of books and also provided a secured payment method. Value innovation of Blue Ocean was supported by creating value to customer's satisfaction by innovative ideas such as knowing their customers behaviors and data mining as an information advantage. In addition, it also enhances communication with its customers in the form of feedbacks when the customers shop online giving the feedback of their shopping experience. As the success from the beginning relies in customer focus, the strategy implied by Bezos always considered investing more in infrastructure and making use of integrated customer systems and service operations and of course the secure method of payment.

Amazon was the first online book store in 1995 and created its own market demand for cheaper and better service delivery. Initially there was no such competition by Amazon to any online book store until Barne & Noble entered in book market in 1997. To apply its competitive strategy, Amazon opened up the web service and Auction website (Z shop). Also, Amazon made an entry to the other online grocery stores and integrated horizontally to provide all possible products. Amazon started getting bigger and bigger every day. Among all these businesses, Amazon was fortunate in books market and Jeff changed its business model and concentrated in books market since then.

By making use of Hamel & Prahalad's strategy of being distinguished Amazon created the web service and cloud computing where any business person can run its business. It has been analyzed that the revenue generated by the web service is beyond the ecommerce business.

The introduction of Amazon's Kindle eBook reader in November 2007 was a smart innovation. Amazon has a secured and established place in the online market due to its lower prices, customer convenience, efficient delivery, strong marketing skills, web service and management. Last year, it was claimed by Amazon that they sold 500000 Kindle eBook readers believed that the associated books downloads and periodical subscription would yield hundreds of millions of dollars. At this place, Amazon takes position as red ocean strategy by beating existing competition because there were many ...