Amazon.Com: an E-Commerce Retailer Essay

3548 Words 15 Pages
Amazon.com: An E-Commerce Retailer

A case report prepared for
MG 495 Business Policy

(Fall I 2012)

Miguel Lopez

26 August 2012

Amazon.com: An E-Commerce Retailer

I. INTRODUCTION
Selling nothing but books is how Amazon.com started its business in 1995, now is acknowledged as the leading online retailer in the world. In addition, its new line of products is the compact disc, digital video disc and movie videos, to include many other products from retail partners from around the world as partnership agreements, which sell their goods through the Amazon.com website. This agreement known as “powered by Amazon,”
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II. ANALYSIS
A. Analysis of the situation
1. Management – Amazon.com’s management strategies were flexible, focusing on increasing market share, presenting higher customer service and producing a profit. “Bezos focused on proving the viability of his business model. In developing this new strategy, Bezos first had to determine what products to offer for sale and the best way to incorporate them into Amazon.com's sales model. Rather than investing and running web sites in addition to its own, as it had done in the past, Amazon.com decided to form partnerships with other retail companies to cross sell their products on either Amazon.com's own web sites or on the partners' web sites”. (Collins, Mockler, & Gartenfeld, 2003, p. 14). Bezos philosophy was to offer everything to everyone became successful with such strategy, earned Amazon a percentage of sales and management fees as well. This management strategy is competitive with the current market and economy. Products such as books, music and movies are the “stars” of Amazon.com according to BCGG Share Matrix, as they are the most selling products compared to the rest of the products sold by or thru Amazon.
2. Operations – Amazon did not operate retail stores, so it had a little overhead, by doing this it was passing the savings to customers by setting low prices. Staff employees and external product experts posted

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