Amazon's Technology

Assignment 1

1). How has Amazon changed the market for books?

Before Amazon people used to buy books over physical book stores. But Amazon changed the market for books by taking it online and storing books at a non-physical store. Amazon has the widest range of books where a customer can order the book he wants from anywhere in the world at just a click of a mouse. Therefore Amazon has made the market for books more efficient and easy to access.

2). Describe the role the “three invariants” play in Amazon’s business model

The three invariants that affects the business model of Amazon are;

* Digital representation

Amazon is an online website which sells books, movies, music, clothes etc. when you visit the Amazon website you can see that all these have been arranged in a presentable manner. The website is user friendly and that’s how Amazon has become one of the leading online sellers of the digital world.

* Computing power

Since Amazon is a computer based business it’s very essential for them to keep up to date with the changing technology and provide their customers with a better service than their competitors. Commercial digitalization is one result of increasing the computer power of Amazon and reaching their customers in a more efficient manner.

* Modularity

Amazon has used their resources of networks in a very effective way that they have been able to satisfy their customers by linking their online services and outsourcing services simultaneously.

3). By being a top online retailer, Amazon has gained capabilities it can use for new business ventures. Describe some of these based on the articles you have read. How will they help Amazon become more profitable?

Amazon has always been up-to-date with technology and has made sufficient changes in the computing power, which basically kept Amazon as a top online retailer throughout the years. Amazon uses the most recent technologies such as letting the...