To sustain this new venture, Amazon Inc. has a good start off, as its traffic is attractive to buyers and sellers into Amazon market place. Firms likely to be acquired in this endeavor include Diapers.com, Zappos and Soap.com.
Amazon intends to buy Quaidis, the parent company to Soap.co and Diapers.com for $540 million. The capital that was collected to fund this acquisition amounts to $78 million. In another strategy for up its competition with CPG companies, Amazon Inc. intends to acquire Zappos at a projected price of $1.1 billion. To compete with Google and Apple, Amazon Inc. intends to upgrade its Kindle to support mobile phone applications and functions. This will enable the incorporation expand from just providing physical goods to digital goods. The low margins strategy has been employed by Amazon regardless it is downcast by other companies. Amazon is offering its products and services at low prices as a strategy to attract more customers and increase its market share. This is a strategy aimed at increasing value to customers rather than increasing its value through high prices and high profits. Increased market share will see Amazon reduce its costs through economies of scale, as the costs will be spread through many customers. For instance in 2011, Amazon had operating expenses of 91% expressed as a fraction of revenues. This demonstrated its big market share compared to Walmart. ...Show more