Amazon. com’s corporate culture is one that fosters creativity and innovation, making it one of the biggest publicly traded tech firms in the nation. There are several principles consistently used that makes the company profitable. This paper discusses some of the principles, strategies, and techniques that have lifted Amazon head and shoulders above their competitors. This paper will also discuss whether the company is moving away from their core competency of leading online retail.
Although competition is a strategy used by Amazon, it will be determined whether or not it is a good strategy, and in what areas Amazon is competing. This paper will also describe how Amazon uses their databases and addresses the possible database issues along with the relationship between data, information, and knowledge. This paper will conclude with how Amazon uses its electronic business (e-business) and electronic commerce (e-commerce) to aid in both the business-to-business (B2B) and business-to-consumer (B2C) process.
Looking at Amazon, it could be said they are moving away from its core of being an online retailer. Amazon has projects in the works that will help attain an immensely larger consumer audience (Manjoo, 2011). The standpoint that Amazon is separating from its core is both true and false because Amazon sold other companies’ products. By expanding their wingspan, Amazon is building a larger customer base. Regarding the direction of where the world is heading technology-wise, Amazon can simply be put as an industry yet to reach its pinnacle.
Every innovator’s goal is to produce a product bigger, better, and possessing more capabilities than the previous product. This means the majority of people seeking to purchase products will be looking for the latest and best working items. By not staying relevant, a manufacturer will lose customers at that end of the market. Because Amazon is competing with other companies, it gives them the opportunity to generate more customers. The bigger the customer base, the more revenue is generated. It seems Amazon is moving away from its core; in reality it will pay off tenfold and will generate more revenue and increase he company. Amazon has been competing to survive in the market of advancing technology against Google and Microsoft. Despite occupying a major position as an online bookstore and pursuing the largest and most reliable online storage in the world, Amazon has not been experiencing profit growth, frustrating investors’ expectations. Amazon amplifies their services through online storage spaces, such as Simple Storage Services (S3), The Elastic Compute Cloud (EC2), and The Mechanical Turk. These components make up what is known as the Amazon Cloud Environment.
As a result, Amazon may attract thousands of firms who can utilize these services; in addition they have their work scrutinized for spam, viruses, and worms from harmful software. Amazon is competing with Google and Microsoft among others to construct a Web-based, “global computing platform. ” Amazon decided wisely by diversifying their services because they will enable the use of 90% remaining of its storage capacity as well as increases competitiveness among its rivals, primarily Google and Microsoft. Amazon designed the S3 for storage of online data backup, archiving, and application programs.
According to the “Amazon Web Services” page, it would make “Web-scale computing easier for developers. ” This is because subscribers will have access to the same technical systems that Amazon uses. The EC2 allows subscribers to run application programs in the Amazon computing environment by renting out processing power. The goal of this system is to create cost effective computing by allowing consumers to pay for the capacity used; therefore, Amazon charges companies per instance-hour consumed. Amazon advertises the Mechanical Turk as the marketplace for technical work that still requires human intelligence.
It gives businesses access to skilled, on-demand workers for a comparatively low cost. Instead of hiring short term staff to complete a given assignment, businesses can simply access the Mechanical Turk system to find the specified human, high quality skill needed to complete a task. For consumers with their assets in the Amazon Cloud Environment, it is important they educate themselves about the pros and cons of the systems. Some businesses worry that Amazon has control and total access to their data. Amazon only tracks data for billing purposes unless there is a legal obligation to track further.
For example, if a person with a lawsuit against Amazon is granted access to certain data records by a court ordered subpoena, the person may also have access to client data. Another con is that businesses cannot use their existing Windows license anywhere in the Amazon Cloud Environment. Customers are directed to speak with their Microsoft representative and explore licensing options, which may result in the purchase of additional material. Amazon provides B2B and B2C services through the use of e-commerce. E-commerce is the system that enables an organization to conduct B2B and B2C transactions over electronic systems.
Amazon’s organization uses e-commerce for their business to run day-to-day operations. Amazon has relationships with suppliers, allowing them to make orders (both hard and soft) and make payments to their suppliers through e-commerce. The suppliers provide the items ordered to the organization. This represents the supplier’s side of the B2B e-commerce of an organization. The customers’ side of an organization using e-commerce whether it is B2B or B2C consists of the customers making the orders and payments to the organization. The organization provides the materials or the supplies to the customers.
Based on the information provided in this paper, it is easy for one to see how Amazon has used certain principles, strategies, and techniques to remain in the competitive market. Although the company has moved partially away from their core competencies, Amazon has cornered the market and excelled in areas. Amazon is therefore remaining profitable for their investors, and Amazon is continuing to please their customers. It is agreed by the authors of this paper that Amazon will continue to be at the forefront of technology and will continue to find creative and innovative ways of maintaining their dominance over their competitors.