Case Study: Amazon

mazon was founded in 1994 by Jeff Bezos. It began as an online book store. Nowadays Amazon’s market cap is at $105 billion and has 51000 employees. Even tough their annual revenue is at $48 billion, Amazon turned in their first profit in 2001. With time they became the world’s largestonline retailer. They own quite a few companies, such as, IMDB, askville, Zappos, Alexa, and so on.. Amazon is considered as a pioneer in digital shops, because of usage of CRM methods, inventory management methods. Amazon’s competitive advantages and differentiations are as following; Technology; Expertise systems and one-click buying systems Economies of Scale Talendted workforce Marketing; Branding and gained loyalty Extensive Product Offerings

It’s sub-page for Amazon accounts that you can create a “Wish-List”. The second image is showing Amazons’s personalization. The web site shows the recommended items for the user, by tracking previous orders and checked items. When the user is looking at an item, Amazon.com lists related items and the items that are bought together with the main item, for reduction of product discovery. So the user doesn’t have to spend time searching for other “possibly” needed items and when bought together, this would decrease shipping costs and Amazon even makes discounts for shopping in bundles. When transaction services are considered, Amazon gives a few options for shipping and payment. For shipping users can choose any of the given postal service. The companies are dependent on the item and location of the user. For payment, Amazon provides quite a few methods also. User can pay with credit/debit cards, gift cards, Amazon.com Store card(customer loyalty program of Amazon) or directly transfering money bank-to-bank account. Amazon provides online order tracking for customers. For every time the order changes a spot (from ship to local post service or from air cargo plane to postal service car), user receives an e-mail. And at any given time user can check where the order is in real-time. As after sales services Amazon provides support for customers via e-mail, online chat with a representative 24/7 or user can call Amazon.

Amazon tracks every customers bought items and suggests relevant, similar or complimentary items on every page. E-mail marketing is used frequently tailored for each different customer. Today’s customers are equipped with information and also information is very accessible at any time. This makes customers less brand loyal. However, Amazon achieves very high level customer bonding and brand loyalty by these methods. The customers feel being serviced, satisfied and helped in a very practical and trustworthy way. Amazon’s e-Service QualityCompensation: Amazon is very generous with refunds. If an item is shipped lately or a different colored item is delivered or even if the item is not what the customer expected, Amazon has a policy of “no-questions-asked-returns-and-refunds” even if the product is sold by another Merchant through Amazon. This results as none buyers’ remorse caused by Amazon. System Availability: As frequently maintained software and hardware, Amazon offers very highly functioning system availability. Customers can reach to Amazon via mobile phones, computers, tablets an deven Smart TVs. Responsiveness: If any problems occur during the shipment, payment or problems with information about inventory and item properties of any product, Amazon handles these kind of problems directly even if the item is bought from