...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...
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...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...
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...Question 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.com serves consumers through its retail websites. The company provides merchandise and content purchased for resale from vendors and those provided by third party sellers, and also manufactures and sells the Kindle e-reader. In addition, the company provides services such as Amazon Web Services, fulfillment, miscellaneous marketing and promotional agreements, such as, online advertising and co-branded credit cards. Amazon has two principal segments. North America, which consists of retail sales of consumer products and subscriptions through North America focused websites; and International, which consists of retail sales of consumer products and subscriptions through internationally focused locations (Mergent Online, 2010). Diversification is a form of growth strategy. Growth strategies involve a significant increase in performance objectives beyond past levels of performance (Mason, 2008). Many organizations pursue one or more types of growth strategies; however, there are many pros and cons pertaining to diversification. In the case of Amazon’s growth, two of the pros are innovation and infrastructure (Taulli, 2011). Innovation involves introducing new products. As companies get larger, it can be extremely tough to introduce the products. This hasn’t been a problem for Amazon...
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...The Success of Amazon Fully discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and recommendations about what Amazon could have done differently Amazon.com was founded in 1994 as online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon completes in a vast array of markets including: books, movies, digital readers, computers, electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand. Amazon has grown and evolved with the growth of the internet. They market their website to an audience that is typically tech. savvy and educated which typically means that their clientele have the money to spend on their products. One of the biggest pros to Amazon’s diversifications strategy is that they have created a one stop shop that offers almost anything that a person is looking for and have been widely successful. Amazon has made it supper easy for anyone to get started with making money online. The products are easy to find, and the ads are easy to incorporate into any blog or website. And the best part is that they even provide you with step-by step instructions on how to do it. Amazon allows you to open up to 100 Amazon stores which you can link to from your...
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...Assignment #2 Amazon.com’s E-Business Model By: Shamaila Akram Professor: Lisa W. Witzig The Business Enterprise – BUS 508 04/30/2011 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 is a largest online book retailer made by largest customer base. Jeff Bezos, the founder of Amazon, had great confidence in the World Wide Web even before the dot.com boom. He used the internet as the core of Amazon's business model. Amazon customers are able to search inside the book before buying it, read customer ratings on products of interest, and purchase products at low prices. Amazon initial target market is an online book consumers, proved to be very lucrative. In addition, the expansion into more diverse product offerings beyond books, such as music, DVD & video, toys, electronics, home improvement and auctions only served to increase the company’s product list. Branching into other areas such as automotive, apparel, jewelry, office equipment, and recreational merchandise, to name a few, is necessary to achieve Amazon’s goal of providing every type of product. Amazon has identified an aggressive marketing strategy to broaden the companies target market, expand the product positioning to all consumer goods, focus distribution outlets through the top ten web sites and price items at a low but profitable margin. Determine the impact if Amazon...
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...E-business model is how the company operates its activities. This involves of product delivery and what it generates revenue and creation and provision of markets. FUNCTIONALITY Amazon provides the web services that helps developers to make different applications.The rightscale is used to provide good solutions making effective to use.It is of less cost and less administrative effort .The e-bussiness contains several concepts including capabilities,resources,sources of revenue and value preposition, so the use right scale providers will consequently widen the market and expand on investments as opposed to Barnes and noble which is hard to online transact and has a limited time offers, on the other hand borders uses the Barnes and noble when opening. DESIGN Amazon is a large electronic site and it is not flashy.It best usability.It has the royal blue bars acrtoss the top and light blue menu box running down,more airy,white bartop and search box.This qualities make it to be liked by many people, Barnnes and noble has atop blue and green bar that shows the number of products under it has a long bar showing the commodities that the site offers,on the left it has a customer favorite followed by the subject and recommendation at the centre it has the products while borders has the two bars under it has a welcoming note of barnes and noble and on the left it has a customer favorite,special values,special formatsand special collection, at the centre it has...
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... ---- Jiachuang Sun 1. Review of Amazon’s strategy between 2007 and 2009 Strategic analysis Profiling the business: ➢ Mission: Amazon’s mission is to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible price[1]. ➢ Product/service analysis: Since the establishment of Amazon, new products has been kept adding into the original book category and Amazon has moved further to provide service. There are three product categories in Amazon, media category, electronic and general merchandise category and other category like Amazon web service and Amazon Enterprise Solution. This means you can buy almost everything from Amazon. ➢ Sales and gross profit analysis: The net sales growth of Amazon in year 2007 and 2008 was in average 30% and the total sales in 2008 was $19166m. In the same time, the gross profit grew from $3353m in 2007 to $4270 in 2008. Actually, both the sales and profits grew quickly since 2001 and they seemed to grow at a quicker way. External environment analysis ➢ Opportunities and threats: • Opportunities: to further improve the speed of delivery; international expansion in emerging markets such as China and India; extension of brands into new areas; through acquisitions and partnership to consolidate Amazon’s technological capability. • Threats: unexpected changes in regulatory...
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...separate them for the rest. This paper will also compare and contrast competitors in the book sale market, competitors such as Barnes and Noble ad Borders and what has separated Amazon.com from them. Has the diversification of Amazon.com helped them gained global recognition? Or has a solid understanding of the market and customer needs propelled them to where they are today? The Pros and Cons Amazon.com jumped into the market in 1995 with an effective business tactic of online book sales. Not only did the company launch an English version of the website, but they also launched a Chinese, French, German and Japanese version to gain a global audience quickly. Amazon also receives about 615 million visitors annually according to a survey by complete.com (History of Amazon). Some dare to believe that Amazon.com has the “ideal” business plan for success but what baggage comes along with this success? Does Amazon.com break the mold with no downfall to an online-based company? Below are some Pros and Cons that Amazon has had to endure as the leader in the new E-business approach. Pros Cons Innovation Keeping up with new Markets Infrastructure Managing Growth...
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...Amazon.Com’s E-Business Model Amazon.com’s E-Business Model Contemporary Business – Bus 508 Dr Linda Harris July 21, 2011 Question 1 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. As the economy continues to grow and change so will consumers with how they shop and purchase their everyday needs. Having a successful business online takes time and effort to ensure that consumer needs are being met. This paper will discuss how Amazon has been able to stay so successful with new and upcoming competitors. In addition to discussing the success, the struggles will be evaluated as well as ways to improve the company. When visiting Amazon, one obtains several products at one time;-it is a one-stop shop similar to an online “Seven-Eleven Store. “ Amazon is the largest online book retailer composed of a multi million-customer base. Jeff Bezos, the founder of Amazon, had great confidence in the World Wide Web even before the dot.com boom. He used the internet as the core of Amazon's business model. Amazon customers are able to search inside the book before buying it, read customer ratings on products of interest, and purchase products at low prices. Amazon’s initial target market of online book consumers, proved to be very lucrative. In addition, the expansion into more diverse product offerings beyond books, such as music, DVD & video, toys, electronics...
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...attract the info and entertainment seeker. Offer the best experience of browsing, reading, and video watching by integrating resources available. They are born for exploring, so is AKF. Alternatives: 1. Attract content & entertainment seeker--- serve as handy content & entertainment portal. Easy to access to the rich & accurate & valuable contents. Better experience than cellphone /tablet/PC. Best for browsing & exploring & video-watching from anywhere & anytime. Focus on: handiness, efficient access to accurate, rich and valuable resource, reading & browsing & streaming experience Slogan: Never stop exploring Pros Cons EC2 for content accuracy (recommendation) Battery & screen need to be updated S3 for cloud storage and cross-platform experience Gaming Apps market is not emphasized Silk for browsing & explore & learn experience Rely on the contents. Copyrights Amazon’s E-book, music, video for richness (media> video>book>music) More handy, easy & cheap than IPad are necessary More resourceful & accurate than Nook Recommendation system Better experience than Android Tablet. should be updated (news/blog Meet demand (bed and couch) recommendation) Recourse integration & cross-selling Require service integration Target customers are the heavy users of amazon Need to cooperate with web services carrier Emotional attach—exploring the world. Gross contribution per customer 1(2 years): Hardware+ Content+ Commerce +Ads +App = 50+168.6+ 267.2+56.6+22.4= 564.8$ ...
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...Amazon.com's E-business Model by: Rebecca Hovanec Instructor: Veronica Brown-Corbin Business 508: The Business Enterprise April 28, 2011 Pros and Cons of Amazon's Diversification Amazon’s growth and diversification is unusual if only because it happened gradually and no one was expecting that it took off like it did. There have been both pros and cons to this growth. Since it was done gradually, there was little chance for it to backfire on Amazon. The design of the marketplace can help to influence success by improving the flow of information, thereby reducing stress and enabling buyers and sellers to function more effectively (McMillan, 2002). By setting the main page to show favorites based on prior purchases, Amazon was building a loyal customer base from which they could try different marketing and selling strategies with. The company used this customer base to expand and diversify, based on their needs and wants. They have also allowed small businesses and individuals to partner up with them to expand business even more. They helped to pioneer the Business to Consumer e-business during a time when many dot coms were going by the wayside. In doing this, Amazon provides better risk control in an ever changing economic climate by not being reliant on a single market. The cons of diversification include a lack of basic knowledge of a new industry, having double the sales team, and may be incompatible businesses (Diversification in Business, 2011). All Amazon...
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...Amazon.com’s E-Business Model Alexa Bell Instructor Harper Business Enterprise May 8, 2011 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. In order to understand Amazon’s growth and diversification of business, we would have to know exactly the meaning of growth and diversification. Basically diversification of businesses is the corporation modifying its financial investments to reduce the markets risks. Amazon is so successful because of their customer service and the loyalty they distribute to its consumers. This builds the customer profitably. Amazon created preferences to enhance the previous shopper’s experience by comparing what the shopper searched for, or already bought, which is called collaborative filtering. I can attest to this, because I am a frequent Amazon shopper. They make it unbelievably convenient and easy to shop there by doing the collaborative filtering. The cons of Amazon’s growth and diversification is Determine the impact if Amazon.com had split up and become a family of brands (for example, “Amazon” for books, “Supertoys” for toys, etc.), each with a different public face but all run by the same parent company. If Amazon.com, had split up and become a family of brands, I believe it would not have cultivated any more business than it already has. The reason for this being, all the marketing strategies would be...
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...phones existed, but they were not the craze that they are today. Most individuals used landline phones. In the beginning, the cell phone market was a blue ocean. It has since become a red ocean market from the sheer amount of competitors entering the field offering a variety of styles, OS, and services. A blue ocean is a place of potential. A blue ocean can also be created from the red ocean. If an already existing service or product industry can provide other complementary services, they “can create a blue ocean of new market space” (“Complementary Products And Services”, 2014). Essentially, they take an industry already in existence, and alter it enough to create an entirely new area of market. An example of a blue ocean move is Amazon’s Prime Air. Prime Air is to be a new delivery service that makes deliveries within 30 minutes of the client’s...
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...Title: Emergent Topics – Cloud Computing I work for a medium size corporation and they need to integrate an abundance of data, but the current infrastructure is not enough for the BI functionality that is required. Purchasing backend hardware for data storage is becoming a thing of the past. In house costs of support, hardware purchase and maintenance, and facilities management can be extremely expensive. Modern technology has spawned cost effective alternatives that can challenge in-house infrastructure performance and cost. Our recent network, bandwidth upgrade has increased our options for effective data storage and BI solutions. Cloud computing technology has come leaps and bounds from its inception. Cloud computing is basically the use of remote servers over a network, typically, the internet for data storage and retrieval. The servers are located in a data center managed by IT professionals and monitored all day, every day. Customers lease the infrastructure on a usage basis and are typically supported by a service level agreement . An intriguing new, cloud based, data warehouse service has just been released by Amazon which is fast, fully managed and offers petabyte-scale storage. The product named Amazon Redshift is also fully supportive of all our existing business intelligence tools including Jaspersoft, Microstrategy, Pentaho, Tableau, Business Objects and Cognos. There are no new languages to learn. You just load your cluster, connect your favorite...
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...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. So in order to really get a grip on Amazon’s growth and the diversity of their business, we have to really deep dive into what the real meaning of the terms growth and diversity. Diversification of businesses is the corporation changing their investments to reduce any risk of them losing in the market. Amazon success has been simply because of the quality customer service that they deliver to their consumers day in and day out. Amazon strategy is to make it profitable for the consumer as well as themselves. The preference to enrich the shoppers experience by comparing what the shopper has already purchased versus what they can purchase on amazon and we called this strategy collaborative filtering. Currently my family members and myself are current customers with amazon and they make it so very easy to shop with them and get what we need and manage to save money and time all in the same boat. Let’s take a journey and see the impact of amazon turning into a family of brands. For example, just having a site for books and one for say just music. And all ran by the same parent company but presented differently to the consumers. And if they would have split up no more business would have sprung to the forefront than it already has. The reason for this is because most market strategies are mostly alike. Sometimes...
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