Use and Management of IT by Amazon

Use and Management of IT by Amazon

Introduction

Amazon was started as an online book selling website but now it has become the leader of the retail websites that sell products with a wide range. The company since it has established it has increased its products ranges from books, music, electronics, videos and etc. The use of information technology system has given a new place to the business of Amazon. The three key aims of the company on which it has been running their business it to provide low cost products, provide a variety of products and keeping into consideration the well-being of its customers. The information technology on hand has been able to provide a lot of advantages to the customers and to the owners but it has been able to create some business problems as well. The company has recently launched an e-book reader that is Amazon Kindle. This product has helped the customers in many ways and has provided a high technology service to its customers but the latest adoption has led to several business problems. The following report with the help of the management information system will help in solving the business problems faced by Amazon due to the new launch of their product.

Discussion

Amazon is one of the leading companies in e-commerce. They are successfully managing their distribution network, selling and buying of products; and marketing and servicing of the products. The market analysis for Amazon shows that the company is currently operating in a highly competitive market where there are a lot of substitute products available for the customers offered by a wide range of e-commerce websites. There are no barriers to entry and this is the reason that there is a strong threat from the new entrants. Customers have a wide range of sellers and this is the reason they have the opportunity to bargain. So a strong bargaining power of the customers is available. On the other hand the market does not offer too much power for the suppliers to bargain. In some segments of the market there is power available for the suppliers but not too strong. The rivalry among the e-commerce retailers is very strong because today every other organization is using information technology to best of their abilities and they are able to attract a huge amount of customers from all over the world. The above market analysis shows that how important it is for the organizations like Amazon to gain as much advantages as possible and manage the information technology system in the most effective and efficient manner.

Currently Amazon is using information technology to become highly competitive in the e-commerce industry. Many organizations like Amazon use a certain amount of sales in order to develop their information technology budget. The management at Amazon believes that it is very important for the organization to properly manage their information technologies in order to become highly efficient and effective. The Amazon organization is currently using and managing their ...