Amazon.com and Management Information System Essay

1245 Words 5 Pages
Amazon model initially offered customers access to massive selection without the needs to incur cost, time and stress of opening warehouses and stores and the needs for inventory handling. Amazon realized to ensure customers get a pleasant experience and Amazon acquire its inventory at reasonable prices, they need to be in control of the transaction process from beginning to the end through operating the business from their own warehouses.
Amazon’s customer philosophy can be traced from a letter extracted to the 1997 Annual Report that stated their focal points by offering customers products that they think is worth buying. Amazon tries to set apart their operations by suggesting extraordinary way in doing transaction and start by
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In order fulfillment, Amazon has utilized its high-tech warehouses capabilities to reduce its operation cost. Through retailing strategy, Amazon has formed partnerships with the famous retailers for instance Target and Borders Books. It is a win-win situation as its competitors-partners are allowed to offered similar items via their linked websites at their own price where it is usually a lower price.
Amazon has also developed a sophisticated technology that can capture its customer’s data all around the world. Amazon Purchase Circles still exist although it has been said to breach its customer’s privacy. The features allow the browsers to get access on the Amazon customer’s personal information such as what types of books that particular groups are reading.
Question 1
How does Amazon.com’s CRM software help it to gain market share and maintain its competitive advantage?
Contemporary customer relationship management (CRM) software attributes analytical capabilities is use for the thorough data analysis. By using CRM software, Amazon can trace all the available information and use it to target a certain market focus. CRM software facilitates this strategy by examining and producing data as modification for marketing and sales techniques. From this, Amazon can study customer preferences, tastes and their buying patterns. Through people interaction and access at Amazon website, CRM software help in guiding for the Amazon management decision

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