ompanies in the Internet space), Adobe eBook Reader (with this collaboration Amazon beat a major advantage of its competitor, it is estimated that the e-book will be in a few years cheaper than a physical book, and it is already known that this new medium has created its own public, which Amazon.com wants to penetrate).
By entering in the European market, it has broadened its customer database, it has compressed transport and distribution costs of orders and it has improved the levels of customer service, thus gaining a significant share of the global market.
It expands its customer base to new markets in order to augment its profit margin (the structure exists – it has a powerful customer database – it introduces new products – it penetrates new Internet markets – it improves its profit margin).
Amazon is very profitable. …
The decrease in profits was due to special customer promotions.
Amazon locks-in the customer by offering him value through original – innovative value added services and it enhances continuously the content of its webpage. Amazon does not sell in the traditional way, it offers customized service. If indeed, we take account of the fact that the confidence-loyalty of Internet customers is for many analysts of a kind of utopia, it is understood immediately that the strategy of Amazon.com is revolutionary.
The company has built a large capital value part of which is its strong name – brand in the Internet and with the experience that it has gained, it manages to exploit its reputation to attract both customers and partners – suppliers by concluding strong relations – partnerships with many competitive advantages and benefits.
For Amazon.com the customers and the suppliers are simply two different groups of customers who Amazon undertakes to interconnect by providing them with incentives and transaction facilities. The company is essentially an info broker.
The company is an undisputed player in the world of on line cooperation, offering a wide range of programs. Through the continuous provision of incentives, it has managed to succeed and achieve various alliances and syndication makes the company ubiquitous in the Internet and so its brand is strengthened.
Amazon.com has managed to transform its product markets into an easy and pleasant procedure mainly due to the use of IT and its innovative applications (1-click Technology).The appropriate use of technology favors the increase in sales by essentially contributing to the lock-in of the customer.
Communication with the customer is of even greater value through the logistics procedures of