Bus 508 001002 Amazon.com�s E-Business Model Strayer University

An assignment analyzing Amazon's e-business strategies.

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1StrayerUniversityCourse: Bus 508 001002Prof:Elile Awa10/24/2010Title:Amazon.com’s E-Business ModelAssignment 2By:John-Miguel Onkony

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2Discuss whether or not Amazon has lost its identity by expanding into markets well beyondbooks?I think Amazon have done well for itself, because many companies when expanding don’t dowell or their brand start losing is reputation. Amazon on the contrary expanded to become thelargest online retailer with a customer base of over 30 million people. Amazon also has donewell over the years not to lose their brand identity by still selling their books at a lower price. Infactmany other large retail companies now use Amazon to power and host their websites(Borders, Virgin Megastores, Target, Sears and many more) because they know that Amazonsystem works.Beyond these expansions to its own service offering, Amazon invested andpartnered with many other companies. For many, one unfortunate venture came to characterizethe dot com bubble. It involved a singing dog and in March 1999, Amazon acquired about one-third of the then privately held online pet supply store start-up, Pets.com for $58 million. Thiswas Amazon’s second investment in an e-commerce start-up. In February 1999, Amazonacquired 40 percent stake inDrugstore.comand anonline pharmacy and self-care products store.It works so well that Amazon.com attracts over 50 million visitors every month from just theUnited States alone.NowAmazon.com is a famous Internet retail company in E-commerce and its business includesB2B and B2C. Over time Amazon.com has added several products including electronics, healthand beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several servicessuch as auctions, 1-Click ordering, and shops. Amazon.com has expanded nationally andinternationally and now operates several customer service and distribution centers in the United
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