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Present areas where Amazon.com® is competing with Google™ and Microsoft®, and whether competition is a wise strategy.

Microsoft and Google vs. Amazon

Amazon has invested some $2 billion dollars on their infrastructure, which has made it one of the biggest and most reliable infrastructures in the world. However, its profit has drop down to about 4.1% which is less than Wal-Mart’s 5.9% (Rainer & Turban, 2008). Amazon currently only uses 10% of its infrastructure capacity, which is why Amazon saw the need to move in a new direction. Amazon has decided to go in the direction of providing a series of computing, storage, and other services to other companies and individuals to assist them in running the logistical parts of their businesses.

Google is out running Amazon in being the number one website that customers are going to for one stop retail shopping. Google has also developed websites such as My Space where customer can come online to communicate with their friends and family. In addition Google owns a very popular video website known as You Tube. This website enables customers to be able to download their favorite music at reasonable price at their convenience.

Amazon is competing with Google and Microsoft by trying to build an Internet Web-based, global computing platform for the next generation. This will allow individuals, as well companies, to be able to access all kinds of information from all over the world in a different way than every before. That is why Amazon’s strategy is wise.

References

Rainer, R.K. & Turban, E. (2008). Introduction to information systems (2nd ed.). Hoboken, NJ: John Wiley & Sons.