Topic > Amazon.Com Case - 963

AMAZON.COM CASEAmazon.com, as an e-commerce site, has emerged as a leader in the world of e-business. Originally, the company started as a website that sold books at discount prices, now Amazon.com has evolved into a worldwide marketplace. Jeff Bezos, founder and CEO, has changed the company's business model several times. It focuses on expanding the selection of goods and services offered on the website, in an effort to satisfy customers. However, he has difficulty managing the priorities of his giant company, he should prioritize existing categories and worry about expansion later. When Amazon.com first started in 1995, exclusively as a book retailer, Bezos knew he had discovered a great company. After all, a physical bookstore can't stock anywhere near the number of books Amazon can offer online. Within a year, the company had a customer base of around 340,000 consumers and daily site visits were also huge. But Bezos wanted to expand the company to offer music and DVDs because he realized there were few, if any, barriers to entry. Over the next few years, Amazon would emerge as a marketplace, expanding the company globally by offering products from toys to kitchenware. Due to the relatively low prices offered by Amazon and also the growing number of online shoppers, the company was making huge amounts of sales and creating profits. In 1999, Bezos invested huge amounts of money to help Amazon become a more efficient company. It built warehouses across the United States to store inventory, in order to avoid understocking during the holidays and also offer a greater selection of products that distribution companies could not. In addition to inventory, the company has invested in logistics, such as controlling its supply chain through the same technology used to create its unique website. They also began customizing their website for individual customers. They stored customer information, which in turn made it easier for them to purchase goods on their website, thus reducing the risk of the customer turning to Amazon's competitors. Amazon wants customers to have the easiest and most enjoyable experience when visiting the site. Bezos realized that consumers need to have a good sense of security when purchasing products online, so the company invested in infrastructure and created an integrated system of customer service operations and payment processes.