Amazon.Com: an E-Commerce Retailer Essay

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Amazon.com: An E-Commerce Retailer

A case report prepared for Professor Stroud

MG 495/DLD Business Policy

Fall I 2011

August 21, 2011

THE WALT DISNEY COMPANY CORPORATE STRATEGY

I. INTRODUCTION

A. Executive Summary

1. Summary statement of the problem: Considered to be the premier online retailers in the word, Amazon.com has had a short life (founded in 1994) but can be proud of the strides it has made. Jeff Bezos, founder of Amazon.com, had an idea that was rejected by his former employer. Bezos decided to take his idea and found a new type of company, one that could withstand the test of time. Bezos was future-thinking when he founded the company because at that time very few households had access to the
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Amazon.com offers a variety of products and services to its customers: books, music and video/DVD; electronics, tools and kitchen gadgets; apparel and toys. By partnering with other online retailers it allowed Amazon.com the ability to offer e-commerce operations through their patented technology and to capitalize upon e-commerce expertise. This allowed those companies to benefit from Amazon’s already high traffic. Amazon.com did show cumulative losses through their investment in other online retailers (Pets.com, Homegrocer.com and Drugstore.com) due to the collapse of the stock market (Collins, Mockler and Gartenfeld, p.6). But Amazon signed deals with traditional brick-and-mortar retailers companies such as Target, Circuit City and Borders giving them the advantage of not having to run their own web site. Amazon.com began a store hosting business through zShops. This service offered small and midsized companies the ability to market their products to customers who shopped online. Amazon attracted people through their A-to-Z Guarantee (Collins, Mockler and Gartenfeld) giving buyer’s confidence because in the event that the product was undelivered and/or defective they were assured of a refund and/or exchange. zShops allowed merchants to sell their products inexpensively through the already established and loyal Amazon.com customer base. Amazon benefited because it reinforced their motto “of offering the earth’s largest selection”

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