A Disruptive Innovation At The Start

Amazon.com Inc. was initiated by Jeff Bezos in 1994 after realizing the rapid rate at which the internet and websites were growing in popularity among business organizations and individuals. In 1995, the company started operating its website for selling books, videos, compact discs, computer software and computer hardware before being incorporated in1996 as an e-commerce company (Reuters, 2015). Apparently, the company offers may products and services for sale; these products include merchandise for resale products offered by third parties. In this regard the

(Amazon.com, Inc.) And lately, Amazon just introduced their newly invented product, Kindle Fire, the most-advanced tablet providing a fully-integrated and end-to-end service for customers. (Amazon.com Inc.) They also started renting thousands of college textbooks to college students with a recently launched service called Amazon Textbook Rental. (Amazon.com Inc.) Amazon’s wide range of product offerings gives them a good chance of future financial growth. (Amazon.com Inc.)

While the e-Books industry posed a serious threat to the retail books industry, Barnes and Noble jumped into a new market too soon and unprepared. In order to prove itself equal, Barnes and Noble has sacrificed its biggest advantage – physical bookstores which catered to book lovers’ impulsive need of selecting books from the shelves. The company launched its own dedicated e-reader device – Nook to get itself into the e-books game which cost them a heavy R&D investment especially when their core business has always been low tech. While the features offered in Nook are almost similar to Amazon’s kindle, it is still far behind the Kindle’s 60% market share.

The company I have chosen to write about is Amazon. Amazon, was launched on July 16, 1995 by founder Jeff Bezos in his two-car garage in Bellevne, Washington. When Amazon first launched as a website that only sold books, but Jeff Bezos wanted Amazon to be much more than a bookstore, he wanted it to be an everything store. This paper will answer the required questions listed below:

In recent years Amazon has become the world’s largest online retailer, opening doors to the world to bring their businesses online too. The Waterproof Kindle will be directly sold through Amazon, so it’s important to address the company's strengths, weaknesses, opportunities, and threats. Amazon has been able to establish their spot in the market due to their “reach and global footprint as well as its aggressive pricing strategies” (Greenspan, 2017). However, there’s much room for improvement within the company because of certain weaknesses in the business model. Amazon was one of the top online bookstores before it blossomed into what it is today, because of this early success customers were already familiar with this online retailer,

They have not limited themselves to online books and retail, they have media, cloud, service etc. “The company that started out as an online book seller has gained credibly as a producer of TV programs and movies. Amazon web services, provides data servers to big companies, this is

The second possible response taken by the incumbents is creating a new market by corporate venturing. It means using a start-up to create their own disruptive technology from a separate organization. The start-up would obtain a lower profit margin than the

Barnes & Noble's new strategic approach should be successful due to its early entry into the e-book market. Their strategy is unique in the fact that compared to competitors they have proven themselves by current success in this market, but are now feeling the effects of price inflation. By assessing Barnes & Noble's disposition from a contentious model, one can obviously see that no pressure would arise from the traditional competitors. However, it does not ensure the future of their book

Disruptive technology brings about many opportunities for both innovation and productivity outputs, however it can also be a risk. It includes developments that create substantial change across the economy for most people and businesses, the impact of which causes significant costs to adjust to due to capital being made obsolete and workers becoming underutilised. Clayton Christensen is considered to be the world’s top expert on the concepts of disruption innovation and technology and according to him the ‘introduction of digital disruption offers a better alternative to the present approach for solving customer problems’. Digital disruption is redefining the norm, changing both markets and competitors around the world. Whilst it can be a positive change for

Amazon has made and amazing stance in selling of online Books and then increasing its stores to expanded categories. Amazon has exceptional sales

Moreover the diversified nature of Amazon’s digital content continues to grow the company’s revenues as other multimedia such as music, TV shows and Apps continue to grow year on year. This provides evidence of the company’s successful decision to offer their devices at low price and leverage consumption of digital content to grow its revenue collection. However Amazon’s competitive advantage in provision of digital content is under threat as other tablets manufacturers continue to develop bundled services to attract more customers. Nonetheless, the low price of Kindle Fire provides edge over other rivals (Hoelzel and Adler,

Amazon is an online retailer focused on selection, price and convenience. Incorporated in May 1996, Amazon.com offers programs that allow sellers to sell products on the website and have the fulfillment performed by the seller. In addition to the online marketplace, Amazon also manufactures and sells Kindle devices. Through the different programs offered by Amazon, the company has the edge over their competitors. They are able to secure the lowest price, fastest shipping and offer incentives to the customer, such as Amazon Prime (Amazon, 2014).

An Amazon Advantage program was introduced in 1998, which allowed users to distribute and market their products. This gave Amazon users a platform for selling their own goods to the gigantic database of customers all around the world for a set fee. By providing this service, Amazon increased it’s customer base, products range and obviously gained competitive advantage. (Amazon.com, 2012)

Amazon is a relatively small player in the bookstore industry, and its main competitors are Barnes & Noble and Borders. Despite the difference in scale, the company shows great promise, because its business model overcomes many of the competitors’ drawbacks.

Amazon has grown up from a normal online website to an ecommerce and broadcasting partner to development platform being driven by the spirit of innovation. Amazon is a service based company offering customers best services and providing more types of products, at lower prices and with proper reviews. Their innovations towards the technology increase the growth of Amazon. Since 1995, Amazon has significantly expanded international retail websites, its product selection, customer service centers and worldwide network (AmazonJobs).