Amazon’s Business Model For this assessment, I chose to write about Amazon.com; this online retailor is one that I utilize numerous times each month, though never really stopping to examine how they became such an important part of my shopping routines, or how they accomplish the online store front, purchasing ease and fast shipping capabilities that I’ve become accustomed to.
Amazon has strategically woven its way into our everyday conversations about products and purchasing decisions; including reviews from customers who have purchased items in the past, to the pricing discounts available, and how .com pricing and product quality compare to traditional retail locations. In these discussions, Amazon is always one of the first sites considered. How Amazon accomplishes its ability to predict consumer trends, ease purchasing transactions and deliver products quickly and efficiently is as much about common sense as it is about strategy, integration, utilization and creation of new technology.
When Amazon’s founder Jeff Bezos began analyzing a business to begin utilizing a unique competitive strategy to eliminate the cost and delay that retail locations added to a business process, he looked for opportunities that offered low priced products, contained a large market of current and future customers, and one that offered a wide range of choices; he decided that the market for books offered the greatest area for advancement and improvement. Books offered a variety of possibilities, they were sold by a large network of retail locations, with numerous suppliers, but the industry itself was fragmented, lacking one core distributor (Chandra, A, 2008). The old book model was simple; publishers print books, store them in a warehouse, then ship them to retail outlets, who in turn sell those products directly to consumers; Bezos wanted to change that construct and remove