Amazon.Com Business Model

2372 WordsJun 19, 201110 Pages
Amazon.com’s E-Business Model Amazon.com was founded in 1994 as an online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon competes in a vast array of markets including: books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand. Imagine if Toys-R-Us, the largest toy retailer began selling books or if the NBA began selling hardware online. The threat of consumer confusion would rise, thus bringing into…show more content…
Amazon.com has made a deal in the online car industry boosting the fortunes of a new player; Greenlight.com; while laying the foundation for the addition of its own car "tab" by year 's (2000) end. These moves will further entrench the model of direct auto sales over the Internet. Amazon.com has expanded its stake in Drugstore.com (it now owns nearly 28 percent of the firm), and has given Drugstore.com a "tab" on the Amazon site. In 1999, Amazon.com opened up stores selling software, video games and home improvement products. Amazon’s long-term strategy appears to be in harmony with its resources and capabilities. As Amazon.com realizes its long-term strategy and solidifies its brand even further, Amazon.com hopes that e-commerce sites that sell only books and music, such as Barnesandnoble.com will face increased challenges to lure people to come to their site to buy books and music, as opposed to going to Amazon.com for a more complete shopping experience. Determine the impact if Amazon.com had split up and become a family of brands (for example, “Amazon” for books, “Supertoys” for toys, etc.), each with a different public face but all run by the same parent company. There are many reasons and pros and cons of having a parent company. Amazon will have to look at the following aspect

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