Amazon.Com’s E-Business Model

Introduction
Amazon.com was incorporated in 1994, and opened its site online in 1995. It offers the world’s biggest online book retailer by largest customer base over 30 million people. Besides selling books, Amazon diversifies itself by selling movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products.
Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand.

1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.
Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique products across 12 categories to be sold by Amazon and third parties. Amazon also manufactures and sells the Kindle E-book, which so far is the biggest electronic library. Customers can instantly download e-books, music or video from anywhere and anytime. It even costs less than traditional product such as a book almost half price. Additionally, Amazon is using