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amazon.com case study. Background Company Amazon.com was founded in 1994 began
their first operation by doing online bookstore. Seattle ...
Trinity of Innovations: Amazon.com. Trinity of Innovations: Amazon ...
Amazon.com is one such successful business. Founded in 1994, by ...
Amazon.com. ... Amazon.com made its first public offering on May 15, 1997 making trades
available on the NASDAQ stock exchange with the ticker symbol AMZN. ...
Amazon. • Amazon is a profitable organization. ... Until recent years Amazon was
experiencing large losses, due to its huge initial set up costs. ...
Amazon Case Study. ... Subsequently, this has created a multitude of direct
competitors for Amazon.com in several different industries. ...
Submitted by candygirly on May 4, 2008
Category: Business
Words: 632 | Pages: 3
Views: 109
Popularity Rank: 94,208
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• Amazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (£29.9m) from $76m in the same period in 2004. Sales jumped 26% to $1.75bn. Until recent years Amazon was experiencing large losses, due to its huge initial set up costs. The recent dip is due to promotions that have offered reduced delivery costs to consumers.
• Customer Relationship Management (CRM) and Information Technology (IT) support Amazon's business strategy. The company carefully records data on customer buyer behaviour. This enables them to offer to an individual specific items, or bundles of items, based upon preferences demonstrated through purchases or items visited.
• Amazon is a huge global brand. It is recognisable for two main reasons. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. It was an early exploiter of online technologies for e-commerce, which made it one of the first online retailers. It has built on nits early successes with books, and now has product categories that include electronics, toys and games, DIY and more.
Weaknesses.
• As Amazon adds new categories to its business, it risks damaging its brand. Amazon is the number one retailer for books. Toy-R-Us is the number one retailers for toys and games. Imagine if Toys-R-Us began to sell books. This would confuse its consumers and endanger its brands. In the same way, many of the new categories, for example automotive, may prove to be too confusing for customers.
• The company may at some point need to reconsider its strategy of offering free shipping to customers. It is a fair strategy since one could visit a more local retailer, and pay no costs. However, it is rumoured that shipping costs could be up to $500m, and such a high figure would undoubtedly erode profits.
Opportunities.
• The company is now increasingly cashing in on its credentials...
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