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Managing Capability

Essay Topic: ,

Outline the patterns of Amazon’s strategic evolution. Discuss Jeff Bezos’s role in this. Amazon.

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com is probably one of the most well-known on-line marketing hub nowadays. The primary strategy of the said online store is being directly connected with its customer. Since people who are using the internet are increasing, it is not hard to believe that Amazon. com found its niche in allowing online users to purchase products and services through their website. Amazon. com is also considered to be the starters in the utilization of Internet as a channel of business endeavors.

Amazon. com was founded by its Chief Executive Officer named Jeff Bezos in the year 1994 (Barros et. al. 1). Bezos wants to open a store which is not akin to traditional retail stores. Basically, the good choice of purchasing platform is the Internet wherein many people are using. In Amazon. Com, the selling of books was being developed because of the unlimited amount of book titles and it is easy to develop search methods and retrieval functions and systems. There are various advantages of an online store just like Amazon. com.

These advantages include direct customer advantages and cost advantages. For direct customer advantages, there are many factors which contributed to the strategic evolution of Amazon. com. First, the business of Amazon is available for about twenty four hours paer day and seven days a week. This makes the online selling convenient for purchasers or buyers and advantageous for the company itself. Second, there is a virtual unlimited shelf space for the books which makes it easy to store book products and convenience for customers. The bulk of the books stored in amazon.

com stores is four times larger compared to traditional book stores. In connection, the third strategy is that it is easy for customers to access search engines and retrieval systems developed by Amazon. com in finding books to buy which provides convenience and comfort for busy customers. In other words, search job is made easier due to the search scheme developed by Amazon. com. Fourth, Amazon. com also develop a scheme which includes a value-added content wherein experts provide books reviews and title recommendations which could help the customers decide on what to book to buy.

And lastly, the company also exploited the advantages of sales and distribution of books in relation to global accessiblity worldwide. With respect to cost advantages in relation to the strategic evolution of Amazon. com, there are also factors that affects its fame in the online business industry. First, Amazon. com has a centralized and largely automated operations which made the business easier to manage. The supply chain is not complicated compared to traditional business models.

And second, it cannot be denied that in online business, there is no need to prepare high investments and it is also not expensive in terms of real assets. Moreover, business analysts provided various reasons why the company will continue to grow in the coming years. First, Amazon. com was able to develop itself as the leading online book seller in the Internet. The company also developed a brand extension plan which allows it to sell not only books but also CDs and videotapes.

Besides, books ansd music sales has increased tremendously and predicted to increase more in the coming years. Amazon. com also tapped the most visited sites in the Internet which includes Excite, Geocities, AOL, Netscape, and Yahoo (Barros et. al. 1). And lastly, Amazon. com has built a database containing customer’s information and patterns of purchasing their products in order to maximize sales. Bibliography Barros, L. et. al. (2009). Value of E-Commerce. [Internet]. Web. Mit. Edu. Available from: <http://web. mit. edu/ecom/www/Project98/G11/15_963. html> [Accessed 19 May].

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