Amazon Evolution

Amazon Evolution

BIS/219

October 25, 2011

James Farmer

Amazon Evolution

Amazon is the world’s largest online retailer. Over the years Amazons profit have decreased, despite what investors expected. Amazon’s operational costs are less than Wal-Mart’s by 1.8 percent. Google and Microsoft are Amazons largest competitors. Many people shop with Google and Microsoft; this causes Amazons profits to go down.

Leading Online Retailer

Many can argue that Amazon is still the top retailer. Amazon launched the website by selling a variety of books online. Since the beginning Amazon has broadened it horizon where a person can buy just about anything. Many may see this as Amazon moving away from its core competency. People may see Amazon being similar to EBay. By people comparing Amazon to a site like EBay this bring Amazon to a whole new level. Although Amazon is not seen for auctions like EBay people still shop Amazon because it is known as a one stop shop, where a person can find what he or she is looking for. Not only has Amazon expanded the website, this large organization has introduced a new way for people to buy books with the Kindle. When a large organization such as Amazon runs the resources they have to thin they start to lose the edge in the organizations core competency.

Amazon and Competition

There are numerous ways to show how Amazon is competing with Google and Microsoft. Created in 2003 Amazon launched its own search engine. A9.com which provides a more personalized search and helps someone to manage the information he or she finds. The company has built it its own office where it can do research and build technologies to better the engine. It uses Google’s database and algorithms joined with its own search features. The results are organized in columns and reveals webpage’s, images, and reference materials much like Google and Microsoft does. It also has a bookmark, toolbar, and it allows users to record, save, and reference notes...