Online Sales - Amazon Essay Example | Topics and Well Written Essays - 1000 words

Online Sales - Amazon - Essay ExampleAmazons brand has enabled them to pursue differentiation strategy. They have an excellent reputation out-of-pocket to their efficient one-click purchasing system, prompt after-sales service and tight security measures. Amazon atomic number 18 using innovative business models such as e-mail alerts, which submit value in ways that have not been economically viable in traditional physical settings. Their distinctiveness is evident in their online value offer Earths biggest selection. Their brand, accompanied by reputation and trust is difficult for competitors to imitate, making it a source of sustained competitive advantage. Barnes and Noble previously traditional intermediaries, now contri thate business using both traditional and online methods. Due to its large share of traditional consumers and physical store outlets, Barnes and Noble are able to appropriate benefits of EC innovation in a manner that Amazon cannot match. (Kauffman, 2003) Ou r client is also ideally positioned to adopt any technical innovations Amazon may look to introduce. of import to Amazons competitive advantage has been their ability to build affiliate/associate networks. Amazon has in excess of 500,000 affiliates, which have links to the Amazon site. (Chaffey, 2004.) They have entered exclusive bookseller relationships with cinque of the top six sites on the web AOL, Yahoo, Netscape, GeoCities and Excite. Amazon pays commission on sales referred from these sites. In return brand awareness, traffic and sales for Amazon growing enormously. The methodology selected is questionnaire and previous documents method. Questionnaire form of requirements gathering is best suitable for a large number of people in a relatively short head of time and can be less biased in the interpretation of results. It would largely save time on the vendors part but would generate no personal touch on each others part. The use of white papers and company financial sales reports are also taken into account for the purpose of the gathering the records. This form of requirements gathering takes place when the information is quite large for simple gathering methods.