Amazon Case Study
1. How does Amazon.com change the market for books? What are the benefits and limitations of Amazon's online retail model in comparison to offline retail bookstores?
2. For Amazon.com to generate revenue (Revenue Model), it must deliver certain values to its customers (Value Propositions). What are values that draw customers to Amazon.com away from its online and offline competitors? While delivering these values, what does Amazon.com do to maximize its revenue?
3. What ‘enabling capabilities’ of network computing did make online bookstores like Amazon.com possible? What ‘enabling capabilities’ of network computing made the revenue model and the value propositions that you found in answering Question 2?
4. What is collaborative filtering? How does Amazon use this technique to encourage sales?
5. Amazon lets its customers sell used books alongside the new versions. Is this a reasonable business practice, or does it unfairly undermine the market for new books?
6. Amazon.com, started as an online bookstore, is now selling practically everything. Why do you think that Amazon.com decided to move to a ‘shopping mall’ type of business practice away from just an online bookstore?
7. How does the design of Amazon's web site facilitate the user's effort to locate a particular product?
Reference
3. What ‘enabling capabilities’ of network computing did make online bookstores like Amazon.com possible? What ‘enabling capabilities’ of network computing made the revenue model and the value propositions that you found in answering Question 2?
Network computing technology allows people to reach across national boundaries (Global reach). Internet permits anyone to access the Amazon.com, even though the company is located in Seattle, Washington. Customers can buy what they want anytime and Amazon.com can manage every order and inventories at their warehouse which are dispersed across major cities in real time.
Moreover, network computing allows people to be interactive, gather information, and give suggestions to each other. People can distribute and share their information by using network computing more easily. They can communicate and get information just by posting reviews and replying to comments. Amazon.com basically offers product information and price comparison information to customer, who in turn added more reviews and comments so all Amazon.com online shoppers could purchase more rationally.
Amazon usually gets customers’ information by web cookies, which gathers the information of internet users. By utilizing web cookies, the company can have records of what the individual customer is interested in and the shopping patterns of the unsuspecting web-surfing customer of Amazon.com. On the basis of this information, Amazon can support potential goods which customer might buy..
en.wikipedia.org/wiki/Online_shopping
www.amazon.com
The article ‘Group blasts Amazon's used-book sales’ By Greg Sandoval, CNET News
The article ‘Amazon defends used-book sales’ By Margaret Kane, CNET News
http://www.zdnet.com/news/amazon-faces-the-challenges-of-its-second-decade/143734
http://radio-weblogs.com/0107127/stories/2003/02/02/collaborativeFilteringWhatAmazonReallyDoesessayByGeorgeDafermos.html
http://en.wikipedia.org/wiki/Collaborative_filtering
http://expertvoices.nsdl.org/cornell-info204/2010/09/28/item-to-item-collaborative-filtering-understanding-the-network-behind-amazon-recommendations/
http://wiki.media-culture.org.au/index.php/Companies_-_Amazon
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mzc2NjQyfENoaWxkSUQ9Mzc1Mjc3fFR5cGU9MQ==&t=1
http://wiki.media-culture.org.au/index.php/Companies_-_Amazon
Saunders, R. (2001) Business The Amazon.com, UK: Capstone Publishing Limited, ISBN 184112155X.

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