A Study on Amazon Essay

1287 Words Jul 26th, 2014 6 Pages
Amazon Inc.

SeifAllah Marzouk – Ahmed Fadel – Mohamed Hajaij

Introduction Amazon is the global leader in ecommerce. It directly sells a huge range of diverse products. Ranging from books to music to other physical goods and, their specialized asset, Kindle e-book. The company attains their high value-added differentiation by customer-focused information services such as holding online customers’ preferences and providing customization. One of the main competitive advantages of the company is unique bundling of several recourses such as service and distribution. Amazon was initially an online bookseller that
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It maintains its competitive edge by offering the best prices. It is able to do so by achieving economies of scale while maintaining a sole online existence. Ebay, the e commerce market runner-up after Amazon, is its most prominent competitor online. Ebay currently is undertaking a new business strategy that might become dangerous to Amazon. Instead of trying to compete with the physical market, it has acquired GSI commerce for 2.4 billion. Although mostly unknown in many countries, GSI is a huge competitor to amazon as being a platform for sellers. Along side with its ownership of paypal, E-Bay is preparing a very dominant cycle for itself. GSI operates as a platform for Toys R Us, Dick's Sporting Goods, Petsmart, Bed Bath and Beyond, The King of Prussia, PA company, and many others. This becomes a threat to Amazon because in reality, e-bay and GSI are not competitors to their sellers and that provides them with the opportunity to adapt a new business strategy of becoming a mediator. "What is common about all of our assets is that we partner with retailers and we do not compete with them, and we believe retailers are looking to partner with someone, not be concerned about competition," said eBay CEO John Donahoe.

Another notable competitor to Amazon is Barnes and Noble. Respectively, they are the market leaders in the selling of books. Barnes and Noble is suffering greatly from the existence of Amazon. Amazon has

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