Amazon.com

Paper Summary:

This paper examines the website of the online book store, Amazon.com by focusing on crucial strategic decisions that enabled it to obtain an early leadership position over other online retailers of books and other goods. The paper discusses how strategy is defined within the organizational structure and how strategy has worked for Amazon.com or backfired. The paper also defines the concept of competition and competitive advantage. The paper identifies areas where Amazon.com clearly has the upper hand on competitive advantage. The paper compares and contrasts these areas with that of the organization's direct competition of the following companies: E-Bay, Barnes and Noble and Wal-Mart.
Outline
Introduction
E-commerce and Role of Strategy
Amazon.com
Competitive Advantage
Models for Building Strategy
Value Chain
Supply Chain Management
The Competition
E-Bay
Barnes and Noble
Wal-Mart
Recommendations
Conclusion

From the Paper:

"According to a recent survey, only "10 percent of U.S. households shop at or browse Amazon's website at least once a month and 9 percent visit Ebay. By comparison, 64 percent say they shopped at a Wal-Mart store" (Ostrom 2002). Clearly even though e-commerce has taken off like wildfire, the brick and mortar store concept still remains strong. Ruben Hernandez-Murillo writes, even though "firms are increasingly finding new ways for the Internet in retail services, little is known about the extent to which the Internet is facilitating various transactions" (Hernandez-Murillo 2005). Still it can be argued even though Internet retailing represents only a very small fraction of online economic activity that in fact these transactions have been transforming the way many business function. While many full blooded dot.com have failed and few have prospered due to continued introduction of new ways of packaging the Internet store and diversification of product. Victoria Reynolds discusses how strategy works within the e-commerce environment. "

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