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Amazon.Com Case Study

5505 words - 23 pages

Questions1. How has Amazon.com developed since July 1995 to its present position at the end of the Case Study?2. How would you define the business, as well as the industry, that Amazon.com is in,at the end of the case study?3. How is technology likely to drive the strategy and affect future industry structures?4. What criteria can be used to highlight the changes in strategic paradigm taking place due to e-commerce?5. How has Amazon.com attempted to merge changes in strategic paradigm that are taking place due to e-commerce?6. How is e-commerce affecting the traditional business way?7. How would you classify Jeff Bezos leadership style??Amazon is no longer just recognized as the largest ...view middle of the document...

(Lindstrom, 2001) By offering more than 1,000,000 books, and with focusing always on the customer, the company became world's best and largest bookstore in the worldwide web and already began to introduce improved software for customer services. Amazon.com implemented, for example, a personal, which informs customers about new releases, a recommendation section, which recommends books based on earlier orders and an award section, which informs customers about books that won prices. (Amazon.com)In 1997, with its focus still on the US market, Amazon.com had to cope with aggressive competition for the first time. But despite the new market situation Amazon passed many milestones. The most important was probably the opening on the Nasdaq in May. The company started its trade at the stock exchange with 3,000,000 shares for a price of US$18 per share. Moreover, Amazon recruited several market specialists from other large companies, and added several new features and services such as a new recommendation centre and the 1-click ordering. Amazon.com also established long-term relationships with strategic partners like AOL, Yahoo!, Excite, Netscape, GeoCities, Alta Vista, @Home and Prodigy. (Johnson, 6th Edition)In October 1998 the company launched the online bookshops Amazon.co.uk and Amazon.de after having bought the countries leading online trader Bookpages and Telebook, respectively. The company soon became the leading online retailer in both markets. It also introduced a music store, a gift store and a video store to the US market. (The Times, 2002) The music store became the most successful online music store within one quarter and the video store the most successful within only six weeks. The two new markets and the new products generated 25% of the fourth-quarter sales for 1998. Amazon.com acquired several other dotcoms such as Jungle Corp, which provides customers help in finding products that Amazon.com does not sell. (Kamel Mellahi et al., 2000) The company received top honours and awards for rewriting the retail business and showing visions as well as good leadership in the innovative use of information technology. (Amazon.com)Like in the years before, Amazon.com continued to strengthen its management team by recruiting top managers form other enterprises in 1999. Amazon.com launched new stores, such as a toy store, a home improvement centre, and an electronic store. The introduction of the zshops and an auction marketplace has enabled customers to buy and sell via Amazon.com. Still focusing on the customer service the company also added several service improvements, like the Amazon.com cards, a free e-card service, Amazon.com Anywhere, a wireless Internet access solution, and the new "all product" search. (Scholes, 2001) In addition they also acquired Internet companies like Exchange.com, Biblinfind.com, Musicfile.com, Livebid.com, and build up a marketing partnership with manufacturers such as Walt Disney. (E-business strategies, 2002)...

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