Amazon Essay Example | Topics and Well Written Essays - 3500 words

Amazon - Essay Example Amazon strives to offer the widest selection of both new and used products. They not only sell books in a wide category but also electronics, apparel, gift cards, shoes, accessories, watches, photography, software, tools and hardware, cameras, movies, toys, house items, computers, games, music, jewelry, magazine subscriptions, gourmet food, kitchenware, cellular phones, sports items, among others. This diversification of products has transformed Amazon into an all-in-one online retail store (Amazon.com). Amazon has focused on building a reputation to gain new customers and retain existing ones. The company calls itself the biggest bookstore in the world and has used diverse strategies to gain a positive online reputation. The company uses its extensive resources, communication strategies, positioning (name and motto), targeted advertising, and web design to create reputation as a leading book retailer and the leader in the online retail industry (Mellahi and Johnson). Amazon is the broadest discounter globally in whichever product type one chooses to buy. The company also offers loyalty packages, which come with massive benefits like getting movies without any additional cost. Amazon provides free shipping offers and customers can also avoid state sales tax. The company sells Kindle at a deficit ($59 instead of $79) and has a Price Check App. In relation to physical book retailers, Amazon prices are lower because of reduced transaction costs and streamlined distribution processes (Amazon.com). Amazon was the first company to start book retailing business model in the online platform and has made numerous innovations and significant research and developments (e.g. â€Å"one-click† shopping) to improve customer experience, hence, gaining support from the online community. Amazon is the first company to develop most of the currently known technologies in online retailing. The Amazon brand was