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Amazon.com's E-Business Model

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Discuss the pros and cons of Amazon's growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

Determine the impact if Amazon.com had split up and become a family of brands (for example, â??Amazonâ? for books, â??Supertoysâ? for toys, etc.), each with a different public face but all run by the same parent company.

Determine if it would be possible for Barnes and Noble or Borders to extend their markets in the same way that Amazon.com has. Explain your rationale.

Determine what Amazon.com would need to do to expand their distribution chain to include some brick and mortar outlets, and whether or not this would be a good idea

Create a table to compare and contrast the Web sites: www.Amazon.com, www.BarnesAndNoble.com, and www.Borders.com, using the following criteria: functionality, design, content, originality, professionalism, and effectiveness. Include the table as an appendix to the required paper

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Amazon.com's E-Business Model

Discuss the pros and cons of Amazonâ??s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

Easy to Get Started. Amazon has made it super easy for anyone to get started with making money online. The products are easy to find, and the ads are easy to incorporate into any blog or website. And the best part is that they even provide you with step-by-step instructions on how to do it.
Amazon Stores. Amazon allows you to open up to 100 amazon stores which you can link to from your blog, or you can incorporate the store onto your own website so that it blends in with the rest of your website. This basically helps your visitors to shop at ease, as they already trust your site.
Huge Selection of Products. This is mentioned belo, but this is what makes Amazon so great. This basically means that no matter what market or niche you are in, Amazon will have products that you can promote either through banner ads or product links.

Low Referral Fees. Amazon has a low referral fee which starts at only 4%. This does not leave you with much revenue when you make a sale. However, this amount goes up to as much as 10% for certain products, and up to 15% when you sell Endless products. Therefore the more products you sell, the higher your referral fees will be.
One-Day-Cookie. Amazon has been bashed for the fact that they only have a one day cookie. This basically means that when someone clicks on your link today, but waits more than 24 hours to make the purchase, then you will not be paid for making the referral. This ...

Solution Summary

This solution is a critical analysis of Amazon's online operation. It discusses why Amazon has the edge over other close competitor like Border, and Barnes and Noble. A five-page file discussing the issue is also attached.

See Also This Related BrainMass Solution

Marketing-EBusiness Successes

The internet for personal and business use is growing with popularity and intesity. Some companies which have attempted the transition have failed while others have had great success. However, to compete in today's tumultuous marketplace companies need to reach/touch all forms of customers and this includes those convenience driven shoppers who utilize the internet to either research their purchases or to purchase all togethers. Some companies that have pioneered in the form of E-marketing are the following: - but what makes them successful?

Dell Computers

However, there are also those that have converted from bricks to bricks and clicks which are the following: - but what has made them successful:

Gateway (converted from clicks to bricks and clicks!)

My thoughts are the following:

Amazon - The company and other sellers offer a vast array of both new and used items to millions of customers worldwide over the internet that has made this company the leading online shopping site. They have adopted the concepts of an extensive product catalogue, shopping services such as personalized recommendations based on customers prior purchases, provides the availability to sell new and used items by customers, auction guarantee, security guarantee and online tutorials to peruse or use the site to include a few of the features. (Rappa, 2004) The company has also taken advantage of the vastly ever changing technology that is being adapted into today's marketplace. This has been done by introducing services available on their website to make doing business with their company easy and convenient which guarantees customer awareness and return. The inception of their online tutorial is an innovative method for those parties that are new to online shopping and unsure about the overall concept. Once the shopping is complete, the company guarantee that is posted better ensures the customer that their privacy and security are of utmost importance at Amazon.com. In addition, this in itself is one of the leading concerns for online shoppers today. It is their adaptation to new technology, overall customer friendly services, easily guided website, and well known name that have given them their success today.

Ebay - They have adopted a vast array of concepts into the site for customers use and assistance. There are options ranging from education tools for parties needing assistance in the buying and selling of merchandise such as the world renowned PayPal to discussion boards, chat room or other options for members to interact with one another. (Rappa, 2004) The company provides the technology and services for which multiple people can interact from all over the world for the overall goal of buying or selling of a new or used item. They also incorporate technologies of well integrated software with online tutorials available in all languages they service to better enhance the customer service to their customers worldwide. Their use and speed of acquiring new technology has provided them with their rapid growth and the profitable results in which they have today.

ETrade - ????

Dell - They focus on mass customization where their retail and corporate customers are able to visit their web site and design their own computers. Customization has helped Dell to lower their production, increasing their positionin the market and value felt by the customers and assisted in cutting costs which has transitioned to their pricing and that in turn makes the company in a sustainable position in the computer hardware industry. They have never lost sight of their vision/values which was customer satisfaction and retention.

Schwab - Values customer needs/wants and desires. Their utilizzation and/or adaptation to new technology, overall customer focused and friendly services, easily guided website, and well known name assist in driving their success.

Gateway - Gateway is a company that rivals with Dell, Inc. They understand to survive/compete in today's market one needs to capture all forms of the market. They transitioned their strategy of that from retail chains to encouraging individuals to purchase in the online environment. The customer service, support and other CRM tools provided by the company assist in increasing sales for the company. They began targeting the corporate market to boost company profits and their position within the market. They understand transitioning to bricks and clicks customers would have the availability to access the company website and transact business on a daily basis throughout the world with their current available products. This in turn has helped the company conform to their current position in the market of offering various products and services on the World Wide Web available to people and businesses worldwide. They understood that with the inception/transition there needed to be a focus also on the service of Dynamic Pricing as it is growing focus/part of the internet due to its ever expanding growth. Gateway's site provides the company with the availability to service customers worldwide at a more rapid pace. They provide immediate channels to change the product prices to fit with the ever changing customer demand. Therefore, the implementation of Dynamic Pricing assists in maximizing corporate profits and creating a competitive edge, which is also needed in the highly competitive online market. (Kambil & Agrawal, 2001)

Staples - Staples works in unison if you will with their retail chains. The company understands to compete in today's environment they need to utilize the intrnet in some form or fashion. They are an organization which values the customer, their wants, needs and input and this is apparent on their site in the feedback/suggestion area. They provide customer service, store locator and a greater range of products available to online customers. They in turn listened to both the market and their customers by providing 24/7 access, greater product variety, shipping availability and still keeping local stores available to reach all variations of customers in the market.

Borders - Borders developed their marketing concept around the customers demands, wants and needs. They understand that the world is turning to a convenience driven society and have capitalized on that market through not only their website but alliances with other E-tailers such as Amazon.com. This partnership allows further recognition and profits for the company by customers throughout the various regions.

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