Amazon.com Case Study Example | Topics and Well Written Essays - 500 words

Amazon.com - Case Study Example It has a competitive advantage over traditional companies that are physically based. Contrary to its online businesses, Amazon operates online and, has access to a large market. It has a strong financial and computer technology background. It has strength in partnership and affiliations with other businesses. A strong customer care service is an important aspect explored by the company to gain market dominance (Wheelen & Hunger, 2008). Most customers are not familiar with web-based sources of bookstore. In some situations, the company may undertake poor market analysis causing wasteful investment in online retail as pets.com , drugv store.com and home grosa.com that were never successful. Online retail business has the potential of generating high operating profits. There is growth in the number of household accessing the internet and, therefore, increased market dominance. Presence of new product lines in the market promotes entrance of new customers for the company. There is pressure from financial markets to abandon the companies stated goals, of sacrificing short time profit. There are existing book-selling companies established in the market that present competition to Amazon.com. Competition is from established home page websites such eBay and yahoo. Poor economic environment such as high sales tax on eco-mass transactions affects the company’s performance (Wheelen & Hunger, 2008). Products provided by the company include books, music, video, toys, electronics, tools, kitchen, and apparel. It provides services such as partnerships, online auctions, web services and retail shop service. The main problem faced by Amazon.com is increased operating expenses through advertisement. The best to address Amazon.com’s problem is cutting down on expenses based on the advertisement by collaborating with affiliate companies to help share the cost of