Amazon.com - Not Your Average Bookstore - Case Study Example

Other than customer comments, Amazon websites records numbers of customers, the products they review and pages they visit. After analyzing those records, Amazon recognizes sale/purchase patterns and makes business strategies accordingly. Is Amazon using disruptive or sustaining technology to run its business? A disruptive technology is the one that creates new market and value network. Amazon.com mostly incorporates disruptive technology. For instance; when Amazon website was formed, books purchase constituted a very small fraction of the items for sale but with the launch of Amazon online bookstore, it has redefined book’s market.

People visit Amazon websites to read reviews on a book and make decision about purchasing the book. Things didn’t stop there; Amazon launched its book reading application, Kindle. It is an eBook reader and uses e-Ink technology which consumes very small battery power, this way people can take their collection of favorite books anywhere they want. Other applications like Amazon S3, Vine and Amazon MP3 all offer new technologies. Interactive interface technology used by Amazon really makes the shopping experience worthwhile.

Online Music downloading and online storage application such as S3, all count as disruptive technologies. How is Amazon using personalization to keep its customers loyal? Amazon incorporates personalized recommendations to keep its customers loyal. . ications like Amazon.com Auctions, zShops (independent third party sellers) and Amazon.com Marketplace (here customers can buy and sell used items), Amazon is offering almost everything to its customers on their fingertips. All of this contributes to increasing customer loyalty.

How has Amazon used technology to revamp the bookselling industry? Amazon has completely refurbished the bookselling industry. Amazon bookstore has become a trademark name for book publishers and customers. For instance, Jeffery Bezos, the CEO of Amazon implemented a smart business strategy by making virtual book store accessible from all across the globe. When Bezos first initiated the list of 20 items online, books were a small ticket item on it, but later when Amazon created thousands of virtual book stores, Amazon Bookstore became a house hold name for book purchases.

No book store could store 5 million books published each year but Amazon. Technology enabled Amazon to handle such a large amount of data and make it available to customers. It won’t be exaggeration saying that eBook concept was popularized by Amazon. Later with the introduction of eBook reader, Kindle; Amazon totally revamped the bookselling industry. Kindle incorporates another technology to download books for its eBook readers through ‘Whispernet’ on a wireless network, ‘Sprint Nextel Network’.

Initial offering from Kindle included over 90,000 books, magazines and journals. How can Amazon use mbusiness to increase sales? There is tremendous potential in mbusiness or mcommerce. According to the research firm Strategy Analysts, mcommerce industry was supposed to be exceeding $200bn by 2005 with 350 million customers generating $14bn annually, and this is 2012, it is easy to figure out what potential mbusiness