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Business IT - Essay Example

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Amazon.com Amazon.com is an online retailer cum internet auction portal. It initially began as an online bookstore but has since expanded into selling diverse products through its e-market space. Using Porter’s five competitive forces, this online retail industry is characterized by intense rivalry among existing competitors, high threat of substitute products or services, low barriers to entry, powerful buyers and powerful suppliers…
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Business IT
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Business IT

This lowered entry barriers has led a flood of new entrant to enter into this online industry (the latest high profile entrant being Groupon.com). Secondly, the Internet widens the geographic market which implies a wider market but also, considering the low barriers to entry it means more competitors to contend with. With many competitors and the disintermediatory effect of the Internet, bargaining power shifts to both buyers and suppliers. Nevertheless, Amazon.com has been able to propel itself to market leadership through the development and adherence to a strong strategic positioning. This is manifested through its customer value proposition, distinctive value chain and continuity of direction. Amazon.com has relentlessly focused on providing its customers a strong value proposition that is characterized by convenience, low prices and an extensive selection of merchandise. This competitive advantage has been achieved through heavy investment in information technology (IT) and a distinct value chain. Amazon’s IT has empowered it to support its “Culture of Metrics” which has enabled it to profile its consumers and thus customize their pages and offer suggestions on what to purchase when they go back online via Amazon’s web portal. ... Read More
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