Analysis of Amazon's E-Business Strategies

This report analyzes Amazon's E-Business strategies, issues, and recommendations for future growth and development. It covers the background of Amazon, its operating plan, and the implications of different E-business strategies. The report also provides effective recommendations for Amazon to boost its E-business strategies and proceed to a level of continuous competence in quality service provision and consumer confidence as well as satisfaction.

First Progress Report
Introduction
This section will involve the analysis of the different companies provided in the option file.
Depending on the topic chosen, a particular company will be chosen and analyzed as per the
topics given. The general guideline of the whole work will cover the background of the chosen
company and analysis of the chosen topic. Therefore, this project will focus on the study of
Amazon Company; initially Jeff Bezos created an online bookstore in 1994 just in his rental
house after resigning as a vice president of the D.E Shaw. Currently, Amazon has grown to b
online supplier of various consumer products such as furniture, movies, shoes, games,
electronics, auto parts, grocery health and beauty products among many others across the whole
world. This type of operation is known as E-Business: an application of the internet to facilitate
the process of business through electronic buying and selling that is boosted by the global
development of the internet supporting infrastructure.
Being an organization focused on E-business, Amazon has an operating plan that have seen the
growth and development of the company to be a global entity. Amazon strategically developed
e-book that enables customers to read and download books through the internet, hence reduced
even the cost of purchasing the book itself. Through this, the company grew to be the largest
supplier of books and later diversified. The Internet is a reliable tool for most of the business
establishment that enables them to drive past competitions; however, it is also a tool that can
destroy the business if not well planned. Amazon enjoyed full growth as a result of the proper E-
business strategic plan that was developed by the Chief executive Officer and the steered by the
management. However, these strategies such as e-marketing, advertising among many other

poses different implications that when are not well taken care of might results in the collapse of
the company.
Choice and Analysis of the Issue
Among most of the today’s business operations, the internet has become part and parcel on the
daily success since internet commands large percentage on how business operates, on how
business interact and communicate with stakeholders and how products are produced and
delivered to the end users. Most of the business organisations tend to use the internet to capture
considerable apace of market share through platforms such as Facebook, Twitter, YouTube
among many others, thereby commonly referred to as E-business.
Every organisation has different types of E-business objectives to be achieved through either the
entry onto the market or the growth, and these vary from the social media, warehouse sales,
Freemium, Ad-Supported Content, Market Place Hosting and Turnkey Business among many
others. Each type of e-business tends to increase the number of customers by creating awareness,
creating efficiency of the business operations hence facilitating rapid growth. Amazon just like
any other site based organisations is internet based oriented, and therefore, to excel there must be
better short and long-term plans that state the on for the organisation to overcome the
competitors. Consequently, each type of the E-business has different implications for a wide
range of issues that arise during the business operations.
Second Progress Report
This area will mainly focus on the analysis of the different concepts of the E-business issue on
relation to Amazon as the chosen company, effective recommendations that can be adopted by

the company, plan for future career, and a concluding statement. The Amazon E-business
strategy issues include;
 The rising connectivity rate among the potential customers
 Increasing number of e-commerce organisations
 Imperfect knowledge and information management
 Sharing among the business and the customers
 Growing number of internet insecurity and increased laws among many others.
This section also provides various recommendations that can be adopted by the company to
ensure it boosts its E-business strategies and proceed to a level of continuous competence in
quality service provision and consumer confidence as well as satisfaction. For instance the
company needs to take two primary steps;
 Re-organizing and focusing on a few products as well as opening new branches to other
countries with potential markets
 Amazon should major more on customer proximity
This aspect will focus on the re-evaluation of the company products and identification of the
potential from the weak products such as HomeGrocers.com and Pest.com that did not pay off.
Through this, the company will be able to drop out those products that are incapable of collecting
enough revenue or keeps on making the company to experience loses. It is obvious that Amazon
is one of the global online retail destinations and therefore, collects its revenue across many
products in the world. However, it is the reality that Amazon has not broken down most of the
countries into detail since about 95% of its revenues are from the North America region.
Therefore, the management should be a focus on explicitly building scale and density across the

countries in other regions specialising in more specific products. It is evident that the company
did more relatively well with only books, music and video segments than it is doing now with
numerous products. This will automatically reduce the opportunities gained by potential
competitors such as Alibaba, Google and many others and also will aid the company to
determine the major specific point of weakness that need strengthening for better competitive
advantage in the new economy. The primary critical strategies of Amazon are to get closer to the
customers by offering the best experience. However, this has never been fully employed by the
fact that Amazon’s less physical distribution stores that affect the proximity. To outdo
significant competitors such as Walmart, Amazon must re-strategize on how to build short miles
distance stores in large countries to ease the distribution of products among the customers hence
improving the customer's experience. Additionally, Amazon should focus on dealing with other
online retailers in different geographical areas that it has no competitive advantage such as in
China so as get entry into those markets.
Plan of future study
My future research will majorly entail two areas that are the lasting legacy of Amazon and
whether Amazon would have just remained an online bookstore. Through the review, I will be
capable of identifying the areas that Amazon got right and what it did wrong by critically
evaluating the reasons that facilitate the quick diversification and the goals against too.
Conclusion
In the current world of internet, every business establishment is working towards utilising the
internet platforms to remain relevant in the competitive market. The business that is born on the
internet such as Amazon also finds it challenging in developing e-business strategies, since

technology and consumer preferences keep on changing. These developed strategies help in
driving the company into success just like Amazon; however, they also face different issues such
as high cost of operations, diversification that leads to specialization, the high cost of services,
stiff competition and different regional regulations among many others. These issues have made
the Amazon’s profit to be elusive since the company embarked initially on the growth and
development without emphasis on the benefit. Now with the little opportunity to grow, the
company needs to improve its profit by following various recommendations such as dropping off
some of the less paying investment and specialising on the potential products such as books and
music. The company should also embark on constructing more physical stores that will take care
of the customer proximity, eventually facilitating the customer experience through quick delivery
within the stipulated time.