Primary Causes of Problems at Amazon.Com and their Remedies - Case Study Example

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Primary Causes of Problems at Amazon.Com and their Remedies

In the year 2000, Amazon.com on overhauled its entire system in order to give it a more customer-appealing look.The company spent $200 million on new systems such as software from Epiphany, logistics from Manugistics Company and a new database management system (DBMS) from Oracle. Furthermore, the company signed more contracts with companies such as SAS for data withdrawal and appraisal. All these services of course came with additional costs to the company. In spite of the additional costs, the biggest and perhaps most expensive deal was between Amazon.com and Excelon as a form of business-to business (B2B) integration. In the same year, Amazon.com linked with HP in a deal that would see the company offer information technology services to Amazon’s customers.

Despite, Amazon’s desire to expand and dominate the online market, the company was criticized over its activities in 2000. For instance, that year the company conducted a price experiment by quoting different prices on DVDs to different customers. However, customers who logged in to Amazon.com web site at different times discovered that different prices were being offered at different times. Although Amazon.com later confirmed that it was offering random discounts of between 20 to 40 per cent, this never augured well with some of its customers. Among the customers’ sentiments were that they were being charged more when they shopped more and that the exercise was awfully sneaky and unscrupulous. Other customers referred to Amazon.com as a shyster. ...
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Summary

This report evaluates the problems faced by Amazon.com since its inception in 1994 and its current status. A detailed plan to solve the problems is given together with an account of how the plan would work. The report also highlights recommendations pertinent to the conclusion…
Author : ziemannotilia

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