Initiative Affect Costs
Amazons investment is their information technology is very important. If Amazon is to continue to be successful, they will have to continue to upgrade their information technology infrastructure updated. Anytime a company such as Amazon upgrades their technology infrastructure expenses will increase the debt of the company. This is considered a good debt to have when technology is upgraded to bring in more revenue to the company. But, when new technology is bought into a company such as Amazon, new computer software engineers, computer scientist and merchandisers will have to be hired in order to have a smooth transition. (Amazon, 2006)
If Amazon wants to increase their product sales this initiative must take place. A company such as Amazon has to stay a step or two ahead of the competition. Sustainability for Amazon is very important and this is why updating their information technology is very important to them. In 2004, Amazon bought Chinese company Joyo.com. Joyo is a technology savvy company and has a technology savvy country to back it up and a country that loves e-commerce. Joyo is the largest online retailer of books, music, and videos in China. (Auction bytes, 2004) They revenue that Amazon will make from Joyo.com can be reinvested back into the business as a positive investment. Cost will increase but with the smart moves that made Amazon what they are today, they will turn a profit on this very important investment.
Reference
Steiner, Ina. (2011). AuctionBytes.com . Retrieved from http://www.auctionbytes.com/