eBusiness Model: Amazon.com

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E-Business Model of Amazon.com--Assignment #2 Questions and Answers

Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books. After reviewing the Amazon.com annual report, I feel that it has not lost its identity by expanding into different online markets beyond selling books. Online merchandising is a large and lucrative market that most competitors are taking advantage of this profitable business. Furthermore, online commerce has saved time and money for consumers, so Amazon made the right business decision to pursue this window of opportunity. Next, Amazon is more competitive than any other online bookstore such as Barnes and Noble and Borders. After browsing the Barnes and Noble and Border
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Since Amazon has a competitive edge over Barnes and Noble and Borders in most aspects of online merchandising, they have to develop innovative strategies to increase their online market share. These strategies include increasing their marketing campaign, expanding into the international growth segment, nurturing existing vendor relationships, establishing new long-term vendor relationships, and adding new product categories.
Barnes and Nobles and Borders must be competitive in their book pricing. Since the book business has gone digital, whichever online company can sell the most e-readers will also be in the best position to sell books to customers. Barnes and Nobles and Borders will have to develop low cost e-readers that can compete with the popular Kindle e-reader created by Amazon. Also, Barnes and Nobles and Borders should enable consumers to read digital books on different devices, including the iPod and cellular phones.
I think that Barnes and Noble and Borders can utilize some creative strategies that most consumers may find appealing. First, Barnes and Noble and Borders can increase rewards for loyal shoppers by offering them discounts based on multiple orders made in a certain time-frame, or even give them a discount for orders made on their birthday. Furthermore, Barnes and Noble and Borders can offer online rewards to their nearest retail store location which is advantageous to both companies since Amazon does not have retail stores.
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