Amazon Case Study

1. Why has Amazon.com succeeded online when so many other companies have failed?

Amazon was founded by Jeff Bezos in 1994 and launched into the largest bookstore in July 1995. Amazon’s success is due to the fact that it was one of the first big companies to sell goods over the Internet. Originally the company only sold books and then expanded by adding DVDs, music CDs, software, video games, electronics, MP3, clothing, furniture and toys. Jeff Bezos was named Person of the Year by Time Magazine in 1999. Amazon catered to their customers needs by providing more information and choices found by local bookstores. Bezos main goal is to make customer service the cornerstone of Amazon. One of the main reasons Amazon.com succeeded where other online companies have failed is they place their customers as the center of attention. They ensure customers will return by practicing direct marketing. They provide excellent customer service because they are available 24 hours a day. There unbeatable prices and rewards for faithful customers have also contributed to their success. They provide incentives to customers when reviews are left. Their website is user friendly and easy to navigate. When returning customers visit the website their previous shopping experience is recognized by cookie that was added on their first visit. The cookie automatically modifies the page based on their last shopping experience. Amazon is also expanding their services to Canada, the United Kingdom, Germany, France, China and Japan. Their online ordering process is known for its quickness. They have a one click ordering process which makes it easier for customers to order.

2. Will the Kindle revolutionize the book industry? Why or Why not

I think that Kindle has revolutionized the book industry and will continue to do so. Bezos reason for creating the Kindle was he thought millions of people