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Digital Business Management and Emerging Technology: Analysis of Amazon's E-commerce Strategies

   

Added on  2023-06-04

12 Pages4179 Words443 Views
Business DevelopmentLeadership ManagementData Science and Big Data
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Digital Business
Management and
Emerging Technology
Digital Business Management and Emerging Technology: Analysis of Amazon's E-commerce Strategies_1

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
E-business model and concept with strengths and weakness of Amazon..............................1
Competitive strategy and digital business strategy of Amazon..............................................3
Digital marketing strategy of Amazon...................................................................................3
Discuss customer traffic data through web market intelligence platform..............................4
Identify Amazon’s e-CRM and social network......................................................................6
Identify cyber security measures Amazon with its e-business ethics.....................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Digital Business Management and Emerging Technology: Analysis of Amazon's E-commerce Strategies_2

INTRODUCTION
The use of digital technology transforms a company's products and customer experiences
through reimagining business models, creating new products that provide value, and connecting
people to things, insights, and experiences. Digital business offers organisations and people new
ways to communicate, collaborate, conduct business, and bridge societal gaps in terms of
business technology (Ross and et. al., 2019). It has an impact on how firms operate at their core
and influences how they are now managed. Emerging business models are the innovative and
disruptive ways that businesses are utilising technology to adopt new revenue streams and
broaden their product offerings. Organizations are altering expectations across the board to
remain relevant by bridging industry barriers and merging with customers' lifestyles.
Amazon.com, Inc., a worldwide technology company established in the United States, is
primarily interested in e-commerce, cloud computing, digital streaming, and artificial
intelligence. It was started by Jeff Bezos in 1994 and has offices in Seattle, Washington and
Arlington, Virginia in the United States. The report will cover digital business and e-commerce
strategies of Amazon through different analysis for understanding company.
MAIN BODY
E-business model and concept with strengths and weakness of Amazon.
Due to the intense rivalry brought on by the regular appearance of new business models, e-
businesses must cater to unique customer wants. Customers may therefore find doing business
with effective and convenient e-business businesses to be simple. In order to supply services and
goods to their clients and audience, e-businesses have benefited greatly from modern
technologies. Most people link Amazon with online shopping. One might be astonished as to
how a little business that started out as an online book vendor ended up ruling the e-commerce
market. By focusing on Amazon's business strategy and strategies, basic facts are revealed. First
off, because to the Internet, Amazon is free to sell anything online, 24/7.
Second, Amazon handles customer accounts, provides a unique customer experience, and
fosters customer loyalty (Milani, 2019). Third, Amazon has added other digital goods to its
repertoire in addition to books. The fact that Amazon now offers more than just music, movies,
and books is astounding. The services and goods provided, the global market opportunities, the
competitive advantages, the effective strategy for controlling the e-retail sector, and the tactical
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Digital Business Management and Emerging Technology: Analysis of Amazon's E-commerce Strategies_3

choice to adapt the business as new items enter the market are all described in Amazon's e-
business model (Ramaswamy and Narayanan, 2022).
The strength and weakness of the Amazon are mentioned below.
Strength
Amazon, the biggest online retailer in the world, has a three-pronged strategy approach
that emphasises cost leadership, distinctiveness, and focus. This line of action has paid
off for the corporation, and this tactic has helped the stockholders of the company
increase their investment returns.
The main source of Amazon's competitive advantage is its use of information technology
(IT) and e-commerce as a scalable and quick-to-scale platform that keeps the business far
ahead of its competitors.
Being constantly at the top of consumers' minds on a worldwide basis is one of Amazon's
main benefits. Because of this awareness, it has been able to enter new markets that were
previously closed off too many e-Commerce rivals.
The company has an advantage over its rivals due to improved client satisfaction as a
result of stronger logistics and distribution skills.
Weakness
When Amazon used the phrase "spreading itself too thin" in recent years, it meant that as
part of its diversification strategy, it had allowed its attention to deviate from its primary
activity of online book retailing and had allowed itself to probe into fresh focal areas.
Despite the fact that this may be a sensible risk-diversification approach, Amazon needs
to be conscious that when it strays from its core strengths, it runs the danger of losing its
competitive advantage.
Given that it offers free shipping to customers, Amazon stands the danger of losing
money and may not be able to cut costs as a result of this tactic.
Because Amazon is a purely online store, its objectives for development, particularly in
emerging markets, "may get in the way" of its purely online sales-focused approach.
Amazon's nearly zero margin business models, which have seriously hurt its profitability
(Jain, 2021). Despite the company's massive volumes and significant revenues, analysts
and business experts usually draw attention to this as one of its key weaknesses.
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Digital Business Management and Emerging Technology: Analysis of Amazon's E-commerce Strategies_4

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