Amazon

Amazon has grown admirably from its initial stage as a small online bookseller to a reputatble online store. During this process of growth Amazon have faced significant losses and expose to a greater competition. However their success contributing factors are: strong branding, providing oustanding customers service and massive sales volume.

This portion examines Amazon’s strategies. Below we have divided Amazon’s strategies into four categories.

1. Amazon’s E-business Strategy

2. Backward Vertically Integration

3. Intensive Strategies

4. Diversification Strategies

1. Amazon’s E-business Strategy:

One of the strategies adopted by Amazon is the E-business strategy which doesn’t require Amazon to operate a physical store instead its sales take place via its website.

The table below shares the reason for Amazon to succeed in e-businesses around the globe.

Table 1: Amazon Website

1 Provide a sophisticated computer-generated recommendation engine that suggests a list of product to its customer.

2 Their website captures the comments and recommendations written by their customers for their site visitors to read.

3 The site tracks its customer’s traffic flow.

4 Amazon uses gathered information to evaluate buying, selling and promotion patterns.

5 Introduced “1-click” ordering where customers enjoy the convenience of one-stop shopping where he/she can find anything they need.

Backward Vertically Integration:

One of the strategies adopted by Amazon which is known as the world’s biggest online bookstore used backward vertically integrated. As an online bookseller Amazon.com purchase books from various book publishers. By being a publisher Amazon has integrated into the role of a supplier as a result they can sell the books cheaper, as its publishing arm does not need to produce a profit. As being a publisher Amanzon decide on its disbtribution methods (example: whther they want to sell the book published to other bookstores or solely...