Amazon Case Essay

827 Words Dec 31st, 2014 4 Pages
While physical distribution is an asset for Amazon, it is also trying to be a dominant player in the digital distribution of content. Do you think this is a good strategy? Why? Why not?

Nowadays we can see a fast development of distribution channels and intake of digital content. We have entered a new period of IT technologies where digital information is playing one of the leading roles together with internet, computer technologies, mobile telephony and evolution of mobile devices. The demand of entertainment and informational content (electronic books, social networks, music, games and video media) spreads through the countries together with mobile devices and PC distribution and becomes more and more vital.

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Key global digital content market Barriers: * the culture to pay for the content is not established – users mostly listen music, read books, watch movies for free; * free services, in most cases, also very comfortable to use, have smart interface same as paid versions – decrease the necessity to make purchases; * technological barrier: throughput networks’ capacity, low penetration of digital devices in developing countries; high level of piracy in a lot of countries
Taking in consideration all the barriers we can still see a constant market growth of minimum 10% that is good sign for the future development.
The IT progress runs very fast, digital products have taken a huge market part only within few years. It looks like new technologies and digital products will cover big segment of the retail. Digital retail has lower costs: no logistics are needed, less labor, no DC leasing. At the same time the range matrix can be constantly expanded with less expenses. More and more Companies turn their strategy to digital distribution and according to the retail market flow they won’t loose.
Amazon Company is one of the strongest market players in the

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