An overview of the reasons for the success of Amazon.com and the challenges it faces in the future.
Written in 2008; 2,340 words; 12 sources; MLA; $ 71.95
Paper Summary:
This paper reviews the success of Amazon.com, and projects whether or not the Amazon model will be as successful in the future. This paper then analyzes the case for the opposite type of e-commerce company, one based on very narrow or "walled" competitors. The paper also argues that Amazon's model must change into a modern-day distribution business, similar to Sears Roebuck in the 1800s. In addition, the paper argues that that the "long tail" strategy is the better one for up-and-coming companies, both because of the difficulty of raising Amazon-level amounts of capital, and because of changes in the Internet.
Table of Contents:
Introduction
Reasons for Amazon's Survival and Success
Amazon's Business Model: The Next 5 Years
Customer
Suppliers
Physical Distribution
Specific Competencies
New-Found Competitiveness for Small- to Medium-Sized Companies
Modern-Day Smaller Competitors: Look Big While Staying Small
The Old Paradigm for Smaller Businesses
The New Paradigm for Small Businesses
From the Paper:
"Amazon benefited from a favorable supply situation with its first 'category-killer,' books. That's because books were published by thousands of publishers, and the suppliers were faced with a daunting network of wholesalers and retailers who were difficult to reach. Inventory requirements at the publisher were multiplied by difficulties at the retailer level. Industry practice dictated that publishers take back unsold books, which elevated their shipping and printing charges."
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