Amazon; Online Book Store Is Known, Case Study Example

for diverse virtual retail supercenter leader where the customers can buy and order books virtually anything they want to find information and discover the “know-hows,” techniques, tactics, and strategies in all types of books. It does not only sell books, but other diverse stuff, like food, toys, and electronics. The customers can order and buy these products along with ordering books. Amazon hascome to enjoy the benefits of the revenues that have profited the Amazon online bookstore business for a good decade or so. But, Amazon has their ups and downs personal feelings toward to the business (i.e., such as, happy and satisfied as in up and downs as in sad or upset) after enjoying a decade of good profits before introducing the user-friendly technology gadget device came to the market. Amazon’s first created ‘The Kindle’introduced the e-book gadget device for customers to enjoy the simplicity of ordering e-books online after their payment is placed then they read the e-book instantaneously. This kind of gadget device did not exist in IT technology history.  Competitors such as the Barnes & Nobles and Borders eventually adopted Amazon’s Kindle.  Amazon became the first mover in adopting the idea to produce an e-book gadget device, the Kindle, followed by the business model that Amazon has created to retain investors to look at the long-term investment in Internet commerce. With that 1-million customers have hada demand of books to be ordered Amazon had to use its  borrowed$7 million dollars capital during 1995 to meet the demand by expanding a room in the idle where house; adding on administrative supplies for shipping, package, and handling inquiries; and, by expanding the cost of the employees to be hired to perform these activities.

Of these operating activities are the essentials for generating revenues as Amazon saw the need to meet the demand. The investors were not only interested in the transactions that can be satisfied between the customers and Amazon to be succeed and to include the personal virtues into the business and community as a whole, they use it as the desired objective goal. In addition, they want to use its business model to represent the customer-based initiatives to exceed customers’ expectations and to build customers’ loyalty to the world renowned online bookseller dot.com company, Amazon.com. There are about 2,500 employees worldwide in 2000.The customer-based initiatives Amazon had implemented for motivating the employees to work closely with customers by having their orders to be filled quickly; and, the package of a product like a book to arrive to customers’ homes to be on time; and, to innovate the patented 1-Click internet ordering and to make a payment tabs on website for the easiness of customers to have a user-friendly navigation with easiness; and, finally, a concept in decentralizing the hierarchy delegate style in decision-making in which supposedly to help the employees to make immediate decisions when assisting customers’ needs. In support to the employees’ services to Amazon.com, they are offered a 10% stock ownership of their company. Which it is nice initiative for retaining employees to stick with the company for a long time.  As the Amazon’s business model has indicated the strategies for online bookstore innovation to be frontier in customer based initiatives and group charter innovation. For instance, Amazon created a group charter for teams to be small and experimental for their autonomy to be constructive which called, “two pizzas to feed its members” by saying the stance that if the team is too large (more than 8 members) for two pizzas then, this team may have some difficulty to work together as a team. A team of five or seven members can be fed up to two pizzas because they came up with all sorts of ideas on how to make the customers to be incept to purchase Amazon products with ‘deals’ of low-priced offers and it is working. The “pizza teams” have expanded different kinds of retail segments. By 2003, twenty-three different storefronts were developed. By 2006, Amazon grew twelve more storefronts selling tangible products varied as books, CDS, DVDs, software, consumer electronics, kitchen items, tools, lawn and garden items, toys and games, baby products, apparel, sporting goods, gourmet food, jewelry, watches, health and personal-care items, beauty products, musical instruments, and industrial and scientific supplies.

In addition, Amazon created a consulting service to other virtual retailers and offers them to use Amazon’s proprietary IT such as 1-Click internet ordering as a check-out payment system for their virtual storefronts. This Amazon proprietary IT turned out to be very profitable business activity for Amazon consulted other companies to design IT storefronts using Amazon’s IT intelligence. However, they had some glitches and setbacks with the IT system for customer navigation system and merchants (partnering with other companies )’ e-book marketing system for customers to see the highlighted features of the featured books or featured products online simultaneously because merchants had problems with customers having the whole e-book for free as if it was sold on black market; but, actually, it was the glitch that the IT have created the problem restricting the IT and product features on from exploiting the whole featured product. Interestingly, Amazon have attempted to build customer loyalty by providing a range of customer services including the ‘deals’ to get unlimited two-day shipping for low price on items weighting below 5lbs; and, another ‘deals’ to use power-search travel service; and, customers can buy unlimited bytes to gigabytes and data transfer per month. Moreover, Amazon does not only think of customers’ needs but merchants’ needs as well. The company offers WebStore for online retailers or merchants to start-up online business by creating their own website through Amazon’s technology, branding, and photos and support marketing tools (other than selling books, obviously) under Amazon’s Associates program. In the near future, Amazon can establish a budget plan for $700 million on $10.7 billion dollars using 2006 revenues to expand IT platform infrastructure and include prospects to be involved in the plan which it is foreseen necessary to invest into the digital technology systems as many companies are entering into that economic force today.

Works Cited

Jones, Gareth. R. “Amazon.Com.” Texas A &M University.  01 Nov. 2014.