Amazon.com Evolution
Amazon.com and Its Core Competency
The initial Amazon strategy was to become a leading online bookseller. However, to succeed in today’s competitive environment, changes in the business directions and strategies are vital to success. With that in mind, Amazon spent many years and made large investments to become one of the leading and most reliable online stores in the world (Rainer & Turban, 2008).
Despite its respected positioning as the largest online retailer, Amazon has not been able to sustain a constant profit growth and has fallen under the investors’ expectations (2008). With the continual pressure, and losses of leading marketing positions to other ever-growing Web giants such as Google; Amazon opted to use its already existing oversized processing capacity to become a provider of a series of computing, storage, and other services (2008).
To this point, results are that thousands of companies and individuals are using Amazon services to help them run the logistical and technical parts of their businesses (2008). Nonetheless, Amazon is shifting away from its original strategy to become a service provider--if this new strategy will considerably contribute to the company’s bottom line or permanently shift its core competency, is yet to be seeing (Rainer & Turban, 2008). References
Rainer, R. K., & Turban, E. (2008). Closing case: Amazon: from book seller to service provider. The business problem. In Introduction to information systems (2nd. ed.). Chapter 1. Hoboken, NJ: John Wiley & Sons. Retrieved from University of Phoenix, course material,