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الرئيسية Everything about The foundation of Amazon E-commerce store.

Everything about The foundation of Amazon E-commerce store.

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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