Conclusion Amazon is a revolutionary e-marketplace that is both world-renowned and extremely efficient. Amazon has gone from a small company run out of a garage, to a Fortune 100 company run all over the world. Amazon fulfills their mission statement every day by being a customer-centric company that offers over 200 million products at the lowest prices possible. Amazon is a very
Background image of page 3 innovative company that creates and manufactures many products. They are always expanding and trying to create new ways to make their company and the lives of their customers better. Amazon’s biggest competition as an e-marketplace is eBay. Amazon currently leads this market by having a more organized, effective, professional, and easy
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However, there have been recent trends toward consolidation. Internet retail sites serves a “defragmenter” in several industries, and are an online version of these boutiques. Consequently, the internet model of one-stop shopping is a conundrum for the traditional defragmenter. Typically, a company that consolidates, or defragments, an industry does so at the expense of personalized service. However, the internet can actually offer more personalized service than some small independent retailers because of the sophistication of its software. Consequently, new entrants can easily offer the low-cost advantage of a large retailer combined with personalized service, and thus quickly compete with traditional brick and mortar shops.
Despite the low barriers to entry, the online ubiquity in the brand name gives Amazon.com a competitive advantage over potential entrants. Amazon’s ability to store and recall customer billing and shipping information creates a minor form of lock-in for customers who can easily make a purchase with Amazon’s “one-click” shopping. In addition, Amazon took advantage of the cheap financing opportunities of the late 1990’s to raise over $1 billion in debt, which it used to build a vast distribution network. With today’s capital markets being less friendly toward new internet start -ups, it would be difficult for a new company to effectively