Amazon

What has Amazon.com done to be come and innovator and leader in the market?

The online market place is constantly changing with increasing competition. How you build your business and operate in this environment does not guarantee you will survive. Todays business needs to have the capability to lead an organization through ongoing transformation and renewal. In order to succeed in the online marketplace a business must be positioned to transform constantly.

Amazon has built its value as a company that strives for perfection in customer communication and building its relationships. Their primary goal is focused around the customer and their needs which adds value beyond the price of the products they sell. This results in a positive shopping experience. The process for shipping these goods also takes the customer into consideration and is one of the reasons that they are top in their class for getting the products delivered. For example if a customer is not happy with a product, not only is it acceptable to sent the item back, but Amazon will also arrange for the item to be picked up free of charge. This is another way they develop customer service and foster loyalty.

Amazon was one of the few companies that emerged from the dot-com error a winner. And they continue to grow in the online marketplace. Amazon survived the dot-com disaster of the 90s because they had an innovative business model that was built around a customer value proposition and a different profit formula which turned the book industry upside down. Then they expanded beyond books to include a variety of easily shippable goods and continue to grow the business through different avenues.

The next step for Amazon was developing a new value proposition that offered a commission-based brokerage service to buyers and sellers of used books and then third-party sellers. Essentially they opened up the store format to other retailers that were basically the competition. The model...