AMAZON.COM'S E-BUSINESS MODEL

Amazon.com's E-Business Model

Amazon.com's E-Business Model

Introduction

The company that initially started to bring revolution in the market was amazon.com and it promised the dot-com revolution. Amazon.com was founded by Jeff Bezos, an investment banker. Amazon.com is Seattle-based Company which sells books online, it then later expanded into other consumer goods including music, movies, clothing, and much more. Initially, Bezos thought that selling books through the web would discover the power of the Internet and the company would not have to stock inventory.

Bezos saw the clash as its market share, not lucratively, with other web entrepreneurs and capitalists who followed suit. It was suddenly viewed as “stodgy if it missed an executable web design and component”. (Quittner, 1999)

Amazon's Identity in the market

Amazon has grown considerably from its early beginnings as a mediocre online bookseller to a huge superstore company that expanded exponentially with the passage of time. During its fast growth its competitors threatened to expand. Reducing costs and gaining profitable income continues to remain Amazon's greatest challenges. However, there are other key factors such as a potent brand, providing its customers with spectacular value and a higher-ranking shopping experience. Apart from that, huge sales volume and realizing economies of scale imparted a lot to the success of this company.

Amazon Brand

Bezos (the CEO of amazon.com) began initially during the boom of dot-com with an idea to sell a plenty of books on the internet and he surely did accomplish that. Amazon went to the public in record time. All his investors, as well as his parents, contributed in his good luck charm. He was chosen Time Magazine's man of the year in 1999. However, unlike many of the CEOs, Bezos was thinking out of the box. From the very start he knew that the success of his brand was dependant on one thing i.e. persistent and continuous focus on the customer. (Krantz, 1999)

This elaborates the brand slogan of Amazon. Up to this point, Bezos constantly sells Amazon as the most customer-centric company base in the world. Whenever he has a difficult decision to make, he more often relied in favor of his customer. In his view, the customer is the best judge.

The moment Amazon.com decided to add the customer review function many people thought they were stupid. The premise was that bad reviews would hurt sales. In fact, the transparency boosted sales and helped solidify a truly interactive brand ...