CYNTHIA SMITH
INSTRUCTORS: BRUCE CHAPMAN &; MIKE O’KEEFE COURSE TITLE: BUS 508: THE BUISNESS ENTERPRISE
JULY 27, 2010
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. Founded in 1994 Amazon.com has become the world’s largest e-retailer with nearly three-times more sales than its closest competitor. Initially beginning as an on-line bookstore, in no time at all the company soon diversified into sales of DVDs, CDs, MP3 down loads, computers software, video games, electronics, apparel, furniture, food and toys. Amazon’s dedication to innovation can certainly be a testament to the company’s continued growth and diversification. Along with the Kindle reading device other innovations that have kept the company highly competitive include: a booming internet hosting business, an Apple I Phone App for comparison shopping, video streaming for Amazon Prime members and a Google Android App store. Last March Amazon.com launched Cloud Drive which allows users to store music and other multimedia files that are easily accessible from their desktop or smart phone (Amazon.com website2011). Another significant advantage is the infrastructure which Amazon built in terms of its facilities along with its internet platform. The customer experience on the web-site is a simple and pleasant one, shipments are very fast which not only results in a higher product turnover ratio but increases the company’s bottom line or cash flow. Amazon.com also developed an affiliates program that expanded the company’s business. Affiliates can easily incorporate the Amazon website into their store or blog. By partnering with a global website Affiliates are able to offer a wider variety of product through banner ads or
