Will Amazon be No.1 Forever?*

Details

Mini Case Code : CLIM038
Publication date : 2005
Subject : International Marketing
Industry : Information Technology & Services
Length : 04 Pages
Price : Rs. 100

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Key words:

Amazon.com (Amazon), online shopping, Barnes & Noble, website, books, apparels, shoes, kitchenware, accessories, jewelry, baby care products, cameras, tools, health care, CD, DVD, personal care products, telephones, toys, Jeffery Preston Bezos (Bezos), retailing, low-price strategy, overhead costs, inventory, distribution network, shopping cart, wish-lists, e-mails, product reviews, associate-programs, third party sellers

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet looks into the operations of Amazon.com, the initiator of online shopping. It analyzes the strategies implemented by Amazon, the virtual store, to stay ahead of competition and focuses on how Amazon alters features of e-shopping to add to the customer's convenience.

Issues: » Amazon.com - The first online shopping store » Amazon - Ahead of competitors » Can Amazon increase the customer base while retaining loyal customers? » How Amazon makes its website alluring to online shoppers Introduction Amazon.com (Amazon), the pioneer in online shopping has seen its sales grow through the years. According to a Fortune report, Amazon’s competitors like Barnes & Noble had been making efforts to imitate the features of Amazon’s website but were not able to capture the market as efficiently as Amazon did.

This was evident from the sales figure of Barnes & Noble, which stood at $425 million in 2003 as against $5.26 billion of the Amazon for the same year.

Launched in 1995, Amazon had the advantage of being one of the first online shopping sites. In the first month of its operations, Amazon shipped books to 45 different countries. In May 1997, Amazon became a public limited company. Between 1997 and 2001, Amazon’s revenue grew from $147 million to $3.1 billion. It offered a wide variety of products to its customers...

Questions for Discussion:

1. Discuss the various features on Amazon's website which helped it to retain and increase its customer base over the years.

2. Do you think Amazon can sustain the competition due to its first mover advantage in the business? Justify your answer.