Case Study – Amazon.com, Inc – Retailing Giant to High-Tech Player?

1. Is Amazon becoming a High-Technology Company?

Amazon is the market mover of the online business and is considered to be one of the best online service stores. It is said by the (Brynjolfsson & Hitt, 2000) that technology play an imperative role in the building of the relationship in businesses, and it is considered valuable both for the customer and retailers.  Amazon provides a wide range of products along with the delivery at different locations around the globe. Following are some points which can prove that Amazon has become High Technology Company:

• They were the first one who introduced the online services and e-commerce. They also entered into the world of online transaction and also gave the idea of free trade.
• They give the opportunity to the retailers where they can meet with one another and with the customers.
• They have invested much in cloud computing, and another technology is driven It will not be surprising in the future if Amazon gives the services of the cloud computing in future.
• Users and consumers would like to use the website or app of Amazon to buy different commodities and products rather than going or visiting the websites of the original vendor or manufacturer.
• Many consumers use Amazon as a useful search engine for the products because Google is bit inept when it comes to product search.
• The entrance in the electronic world through kindle is another string rational reason which can assure that company has already moved towards high-end

(Fernholz, 2011)

2. Does it make sense for Amazon to sell Kindle below its cost?

This is an ingenious and remarkable strategy used by the Amazon. It is evident that a user or consumer will hesitate to buy something expensive from the company which is new in that particular field. Amazon is known as an online store for buying books and other products; it would take time for the consumer to accept company into technology. The idea behind the selling below the cost is to compete with the Apple and moreover, make customer accept them into this field. They followed their strategy of gaining higher market share with the low price strategy. The positive response of the user has enabled them to achieve what they wanted to. (Kafka, 2009)

3. Should Amazon collect state sales tax in every state?

Consumers have continually said that they find this thing very attractive that Amazon is a tax-free place, and this is one of the reasons behind loyal and retained consumer base. Initially, Amazon had not marketplace which means no tangible existence, but now they have stored in America. The government is forcing Amazon to collect the sales tax, but Amazon does not really want to do it.  Amazon has made anti-sales tax team which tried to convince the government by giving the rational reason that they are making profits, sales and customer loyalty through this tax-free sale, and if they change this, it will surely affect the sales and customer base. However, after the extreme pressure, they collect this sales tax from the 28 states. (Amazon, 2016)

4. Should Amazon invest in same day delivery?

This is an adamant point, and it differentiates Amazon from other online stores. This enables and ensure the sustainability and thrives of the online company in the present and in the future as well. They have keenly focus and cater the need of the customers. Customers always prefer and want fast delivery of their product and this concept of “Same Day Delivery” have fulfilled the dream of the customers. It is definitely a good competitive strategy, and it has also brought a sense of satisfaction in customers. A satisfied customer will lead to the customer retention (Kotler & Keller, 2015) i.e. the customer of Amazon will again buy a product.

5. Should Amazon expand its streaming content?

This has enabled the Amazon to diversify or in other word expand their portfolio. Users of online data streaming are different, and their need, timings, and preference differ from one another. Amazon is successfully trying to target each and every segment through online data streaming and giving tough time to its competitors like Netflix. Amazon through its innovative technology is targeting each and every market segment. Subscription to online data streaming through Amazon let the customer have a list of what they have viewed in past and what is available which is not available on Netflix and other competitors.

6. Can Amazon compete with Samsung, Sony & Apple?

I believe that Amazon is giving tough time to all the companies which are mentioned above. They have made their products used by the consumer by low price strategy, and this lets the customers compare the effectiveness and price of each brand. Moreover, apart from tablets they are providing valuable customized services in hardware and software industry. They have surpassed their competitors in the area of services like subscription and online data streaming. Their increasing customer base and sales are the proof that they are winning this competition.