Case Study of Amazon.Com Essay

2606 Words Jun 7th, 2011 11 Pages
Introduction
The Internet had been a revolution for us. The Internet has changed the way business operates, and especially it has created a new sector, new industry in the business community. Amazon.com is the first company taking advantage of the Internet and has turned itself to a pure-plays-pure online retail giant.
Amazon.com is an American electronic commerce company in Seattle, Washington. It is America's largest online retailers, with nearly three times the internet sales revenue of runner up Staples. Jeff Bezosfounded Amazon.com, Inc. in 1994 and launched it online in 1995. It started as an on-line bookstore but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, videogames, electronics,
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There are lots of benefits on Amazon.com they are financial and non-financial benefits. 1. Financial Benefits a. Improved Cash Flow: Online Payment would result in the lead time to receive payments at the same time of the order process.

b. Increase revenue: Going in the internet means increase the volume of members so by going online with your business you will generate revenue from around the globe.

2. Non-Financial Benefits a. Communication: Direct email marketing incurs little or no cost compared to the traditional direct mail marketing. Direct email marketing allows the flexibility of sending message to the customer when your business wants.

b. Transparency: The information management website allows membership process to become transparent. Management will be able to know as matter of fact.

i. The total numbers of members. ii. Those members who need to renew their membership. iii. Total no of members and accredited members. iv. Forecast for the expected revenue that will be generated in advance and look at historic monthly generated revenue.

c. Exposure: Amazon.com is a global business due to the internet. So it attracts the customer from internationally. Using the Web to sell your products removes the physical boundaries from your customer base.

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