Not the Average Bookstore Anymore

Not the Average Bookstore Anymore

Although Amazon’s core competencies originally consisted of being an online bookstore, there is room for growth in the global internet market.

What’s in a database?

A database consists of various components such as: hardware, software, users, and data. These components are used together to create a functional tools for consumers. Users expect to receive data that is fast, accurate, and reliable. These tools allow users to follow trends, to make decisions based on the raw data. Based on this analysis users can decide whether or not they should continue with a product line or start moving toward a new one. Like many other companies in the market, online companies are no different. These companies have to stay competitive and come up with fresh new ideas when older technology and products start to fade.

Winds of change

To stay competitive Amazon has had to change their core competencies that started out as an online bookstore. Because this business is being taken over by other retailers, Amazon needs to move away from their core competencies and provide other value added services to stay competitive.

According to Banham (2004), “While still sometimes referred to as an online bookstore, Amazon now boasts a product line that staggers the imagination, from apparel, sporting goods, and jewelry to new services including a feature that lets customers make “1-Click” Presidential campaign contributions.” Banham (2004) continues, “Amazon built its brand initially on low-priced books and waited for customers to come bargain hunting.”

The Competition Grows

By making the leap from online bargain bookstore and entering other on-line markets, Amazon has acquired some ‘heavy hitters’ for competition. Google, for instance, is a competitor of Amazon in areas like transaction processing services. Amazon introduced their version of this service for online merchants in the fall of 2008 for a fee but began offering it for free in May...