How and why have national book stores had to alter their operations to compete with Amazon and internet purchasing?
FIRST MOVER ADVANTAGE FOR AMAZON
Amazon.com, Inc. (Amazon) is a customer-centric company that sells a range of products that it purchases from manufacturers and distributors through its retail Websites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca and w.joyo.com. Amazon and third-party sellers offer new, used, refurbished and collectible items in categories, such as apparel, books to toys and video games, and health and personal care. To keep customers interested in Amazon, the firm offers e-mail-based services to its registered customers.The 'first-mover-advantage' is a competitive factors that cannot ever be taken away from Amazon. By being early movers it is getting ahead by attracting businesses to new on-line marketplaces, by determining the range of products and services these marketplaces offer by setting the rules of interaction, and by reserving the value-added position for themselves.
This issue deals with e-business, e-business is a strategy, which uses technology to achieve business goals. It is basically an evolution in the way companies interact. It provides information to facilitate delivery of goods and services and supports change initiatives and reinforces business process reengineering. It improves external business relationship also.
Types of business on net
There are two types of companies that do business on the Internet. One type of company is that which exists solely on the Internet. These types of companies do not have stores or do business in the traditional way. Two notable examples of this type are Amazon.com and CdNow.com. The other type of company that uses e-commerce is one that uses the Internet to complement their existing business.
It leads to a smaller, leaner staffs with a greater focus on marketing. It helps in transparent communications through the intranet and internet.
Moreover the employees can have personalised feedback and interaction with the topmanagement. It reduces the gap in the organisation, fosters creativity& innovation. It also reduces the cost of operations.
For e.g In Ebanking, occupancy costs that are 80% lower than for a traditional bank. A multimedia bank ...
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