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Amazon Website Management Information System

Essay by   •  May 6, 2012  •  Case Study  •  3,467 Words (14 Pages)  •  1,346 Views

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Table Of Contents

Abstract 3

1. Introduction 4

2. Definition of a business model 6

3. Role of a business model 7

4. Types of E-business models 7

1- Storefront Model 7

* Shopping cart technology 8

* Online Shopping malls 8

2- The Auction Model 8

4- The Dynamic Price Model 8

5. Amazon's e- business model 9

* Online strategies and databases used 9

* Operational strategies 11

6. Amazon's web services 11

7. Problems with Amazon 13

10. Personal Experience and Survey results 16

11. Solutions 17

References 17


Amazon is an international electronic commerce company that is well known in almost all countries and has customers residing all over the world. It is well known for its high quality, cost-wise products and outstanding customer service. This paper highlights the electronic business model of Amazon and the strategies that are implemented as well. The last part of the paper discusses some problems that can affect Amazon's level of efficiency on the long run and provides easy-to-implement and effective solutions.

1. Introduction

Amazon is a Fortune 500 American E-commerce Company based in Seattle, Washington. it is the global leader in e-commerce as well as the largest online electronic retailer in America which serves a worldwide audience.

It was founded in 1994 by Jeffrey Bezos. Jeff Bezos used the Internet rather than traditional distribution channels. He had moved to Seattle after resigning as a Senior Vice-President at a Wall Street investment bank. He didn't know much about the Internet. But he came across a statistic that the Internet was growing at 2300%, which convinced him that it was a large growth opportunity. Jeff Bezos website was launched in 1995 he named the company "Amazon" after the world's largest river. He entered the world of e-commerce with no prior retailing experience. Jeff Bezos was determined that he had to create more than just a bookstore if he wanted people to come back as customers. Therefore he added the option to buyers to write their own book reviews, which is a huge credit and success to Amazon.com. People began to look at Amazon as more of an online community and not just a place to purchase things. By 1997, Amazon.com had generated $15.7 million in revenue. Once the company went public the same year, they decided to add more options to the website such as CDs and movies. In 1998, Amazon added some new items: software, electronics, video games, toys, and home improvement items... Once the company began showing signs of success, people became skeptic, doubters, and claimed that Amazon was getting too large in too short an amount of time.

Amazon has also some features such as secure payment systems, image uploads, searching on the websites as well as the Internet, browsing, and the ability to view selected interior pages and citations.

Technological innovation drives the expansion of Amazon, offering customers additional types of products, more conveniently, suitably, and at even lower prices. Amazon offers a personalized shopping experience for each customer, book discovery through "Search Inside The Book", convenient checkout using "1-Click Shopping", and several community features such as Listmania and Wish Lists that will help facilitate for customers to discover new products and make knowledgeable buying decisions.

Moreover, Amazon's community of online customers also creates feature-rich content, including product reviews; online recommendation lists, buying guides, and wedding and baby registries.

Amazon's logotype is an arrow leading from A to Z, as it forms a smile; which is a goal was to have every product in the alphabet, as well as representing customer satisfaction. In 2000, Amazon started to offer its best type of E-commerce platform to other retailers. Today, big names of retailers work with Amazon Services including technology services, merchandising, customer service, and order fulfillment. Finally, independent software developers also derive value from the platform through Amazon Web Services by creating profitable applications and services that provides to Amazon customers and sellers.

Today Amazon.com serves a worldwide audience and it's available in different languages (English, French, German Chinese, and Japanese). According to a survey by "complete.com" Amazon websites obtains approximately 615 million visitors annually. It has offices, fulfillment centers, customer service centers and software development centers across North America, Latin America, Europe and Asia. The company's global headquarters is located in Seattle's South Lake Union neighborhood. Amazon product lines include books, music CDs, videotapes and DVDs, software, consumer electronics, kitchen items, tools, lawn and garden items, toys & games, baby products, apparel, sporting goods, gourmet food, jewelry, watches, health and personal-care items, beauty products, musical instruments, clothing, industrial & scientific supplies, and groceries. "We've Only Just Begun" The spirit of innovation that is part of the company's DNA drives this evolution of Amazon from Web site to e-commerce partner to development platform. Amazon's E-commerce is still in its early ages and infancy. In the years to come, you'll see Amazon creating new technologies, expand into more geography and continue to improve, expand, and develop the lives of shoppers and sellers around the world.

2. Definition of a business model

A business model is technically defined as the ways any business operates in order generate revenue as planned. Chefbrough and Rosenbloom have researched the components of the business model. They stated that first of all, any business model should explain the value proposition. Meaning that it should explain what is value to their customers, what do their costumers think



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