The technology and Internet era carries many new
manifestations, the traditional methods and shapes of organizing have become
unable to take the chances of this stage. In other words, the Organizations
that work according to the tradition ways and methods can’t adapt with the new
inputs. So, many new concepts have
appeared and more concepts will appear. The old traditional concepts used are
being reconsidered to take dimensions correspond with the requirements of the
current stage. In this work we are trying to give a clear image about Amazon,
the giant retail E-commerce site on the Internet and the most strategies that it
followed to maintain the share of the lion in the retail commerce inside and
outside the web.
1- The foundation of Amazon E-commerce
store:
The electronic stores are known to be “a place on the Internet
that can be visited using display programs, and each site has its own address
that is called (URL)(1) or a group of data and information stored on a servant
computer that is connected to the web, it shows its information through a page
or a group of pages called ( WEB PAGE), the first page is the foreground main
page of the site is called the (HOME PAGE)” (2)
Amazon website belongs to the websites that is concerned in the
e-commerce and the web. Through them you can get all you need, these Websites
are in general on shapes of columns ( catalog) or on a shape of showing all
what is displayed. Amazon store was founded by Jeff Bezos who graduated from Princeton University where
he studied computer science and electricity engineering. He invested his study
in working for many companies where he discover a lot of technology secrets
until he brilliantly succeeded with a financial company called DIchao and it
made him promote to the position of vice president despite his young age. Bezos followed the news of Internet development
and its wide spreading over the world, as the statistics indicate that by the
1994 the usage of Internet has increased to 3300% in all world, from here came
his idea in finding databases for books with cooperation with books traders to
provide them for all who ask for books through his own website. This idea
required him to be totally free and leave his position in the financial company
that he used to work in. Amazon website
got higher and the share of the company were thrown for public buying, and in a
few years it became the biggest library on earth and its clients became more
than 27 million client. Amazon sold more than 30 million products through 12
thousands employees and the total revenue of the company by the year 2004
became more than 6 billion dollars.
2- Strategies of developing Amazon
Website:
The website was only selling groups of books and magazines but the
success the website made in a short period made it important for the website to
work on improving itself depending on three main elements:
1- Building
the commercial Brand: If the organization wanted to
display a new brand on its website,
choosing the good name is of much importance as the brand must reflect the
product and be able to protect it legally on the Internet, it has to be short,
remarkable and easy to be read and translated to many other languages like for
example ( Dell compute) on the website ) www.dell.com) it’s much easier than
((hummackerSchlmer) on the website (www.hammacker.com).(3)
So for Amazon, the one who chose the name “Amazon” which is a name
of a strong river in USA, he got it through searching for the best names
through search engines, and he succeeded in a short period making the Website
famous among his family and friends. Despite the start of the project costed
only 300 thousand dollars, the website made a very fast success and its
revenues reached 20 thousand dollars in the first week.
By this way the clear and short brand for the electronic store
Amazon.com has played a very significant role in increasing the outcom of the
project in a fascinating speed. (4 )
2- strategy of growth and expanding:
The expansion in the kinds of displayed products in a website will
actually participate in make more acceptable for the visitors, so Amazon has
followed the strategy of expansion in the products that it displays as an
effective means to gain more visitors. We find the reason for developing Amazon
Website in such fast tone goes back for the diversity in the educational
cultural products like books, CD and DVD. It also goes back for the electrical
products for houses, in addition to that the website provides offers on
journeys, etc.... The website has become the largest retail supplier on earth
through the company’s strategies that it made with a lot of international
companies in the same field to make them an alley instead of competitor, like
(borders), (R) and (Toys), or by going to the websites that are called les site
dédié.(5 )
In addition to the strategy of diversity in products and
partnership contracts, we find that the internationalization strategy, by
founding international branches that follow the main company, and websites on
the web, helped in creating an added value regarding the following
products: Computers, Camera, Digital
copying machines, MP3 devices. However, the real positioning of Amazon appeared
more when it founding a store for selling books, essays and documents directly
on the web, to become one of the pioneers of e-commerce of all its kinds.
As a support for Amazon’s growth strategy, two branches have been
opened in 1998 in both of England and Germany. The sales of these two branches
were too high and reached their peek in the year 2001 to represent 25% of the
total revenue of the mother company for the same year. Another branch has been
opened also in France in the year 2000 to make the offers of the store reach
more than 330 countries, thus Amazon has become the top company internationally
in retail supplying by the year 2005. (6 )
The store has become too famous internationally as it reached
Arabic countries, we find that Amazon.com has joined the channel of e-commerce
in Tawfir. Com, the unit of e-commerce businesses of Tawfir company to provide
limited information systems, the company which is specialized in providing
solutions around information systems and e-commerce. By using the service of
e-commerce from Tawfir.com, Amazon has become able to show and compare its
products to millions of Arab Internet users in Bahrain and the middle east and
other places. (7 )
Of the
most important things that makes competitions across electronic stores and
different available strategies remarkable is giving the ability to the company
to use this technology and use all the services provided by the Internet. So
you can build a website without considering the authorized strategies of what
it will cost the company starting with its reputation and losing its
reliability, and as a result making clients go away from visiting its website.
In general the Internet gives everybody the chance to take over, the best one
is the only deserves to win, survival of the fittest, because of the low cost
of investment, getting a website isn't expensive, but its success depends on
the ability to manage it correctly.
About our study for Amazon store as a sample of the most important
international organizations that sell in retail inside and outside the web, we
have come to the following results:
·
Amazon depends on the continuous development strategy
whether for its services or products.
·
Amazon depends on strategy of alliance in many of cases
to be able to win a partner and expand its market share and make use of its
partners experiences.
·
The business of the company isn't limited to retail
field, the company is trying to invent special programs that will distinct it
from its competitives like founding the search engine 9A.com, and providing
scanning through Amazon service, and all these services form a clear
threatening to all its competitors.
·
Focusing on the integration necessity between virtual
and actual business worlds, the success only come through the law of survival
of the fittest.
·
The continues planning in setting the website goals in
order to achieve the wanted targets from it, to guarantee the development of
operations and getting income.
·
Rotational checking for the website and making sure to
take the visitor’s opinions in consideration.
·
Amazon always yield to establishing a database that is
related to all its visitors and tracking them through the web, that will help
it specify their needs and the right time and place.
·
Establishing a unified system of buying that is for
Amazon only. It should enable the visitors to use it in any site of the
competitive websites, this will put its competitors in a hard situation towards
Amazon that has put its control on the way the clients move and buy from its
website or the competitors websites.
At the
end, what we can conclude is that in the field of competition through the
Internet, companies don’t rely on the money that will start its project with it
as much as relying on the high technological skills that aim to succeed and
develop. And we shouldn’t neglect the importance of the integration between
Internet and the real world that will represent the real picture of the
electronic store, neglecting any of these sides will affect the other. As for
the competitive attitude through the Internet, it’s uncontrollable, so the speed
in changing and renewing are the most important elements that distinct it, so
you should leave the competitive field for the competitor to think not in
imitating you nor being more successful than you and work hard to find
alternative strategies to face him ( the strategic awakening).
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