Amazon Essay

3875 Words16 Pages
The aim of this report is to examine critically business model of Amazon.com. Furthermore, debate issues that concern its presence on the market and discuss whether Amazon.com would be an appropriate acquisition target for Wal-Mart in the years 2004-2006. Amazon.com was established in 1995 by Jeffrey P. Bezos, current CEO. Company started its activity as a pure online book retailer and since then has diversified into music, video & DVD, electronics, accessories, photography and other products which vary in different countries. In the 1997 company was listed on a stock exchange and common stock is quoted on Nasdaq National Market. At present is one of the biggest e-retailer in the US, Germany, France, United Kingdom, Japan, China and Canada. Moreover, Amazon.com has great competitive edge as being the pioneer in the e-commerce. AMAZON’s BUSINESS MODEL 1. Vision- “to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” (http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-faq#14296) 2. Mission- “to be all things to all people.” 3. Amazon’s Customer Experience Pillars- “Focusing strategy on customer expectations by offering low prices, convenience and wide selection of merchandise.” (Scholes, 2006) Internet Business Models/E-commerce for Amazon * Merchant- is a retail merchant that operates only over the web. * Affiliate- in contrast to the ordinary portals, the affiliate model, provides purchase opportunities wherever people may be surfing. It motivates affiliated partner sites by financial incentives (in the form of a percentage of revenue). The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model. If an affiliate does not generate sales, it represents no cost to the merchant.

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