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Case Study of Amazon.Com

Amazon.com “opened its virtual door on the World Wide Web in 1995 and today offers Earth’s Biggest Selection of product, including electronic greeting cards, on-line auctions, books, CDs, videos, DVDs, toys and games, electronics, kitchenware, computers and more”, and, “Amazon.com is the place to find and discover anything you want to buy on-line” (Amazon.com, INC., 2002a). Amazon.com focuses on both customer relation management (CRM) and infrastructure management. It has been a successful and leading player in the e-commerce industry and has survived the worldwide disastrous waves of collapse of dot.com industries over the past two years.

The growth and success of Amazon.com are largely built on its syndication strategy through aggressively expanding its extensive networks and e-partnerships. Through its on-line affiliate program, Amazon.com has developed e-partnerships with hundreds of thousands of e-partners, ranging from tiny, personal home pages to big brothers like Yahoo and Excite. Over 600,000 web sites have joined Amazon.com and placed hyperlinks to Amazon.com for e-shoppers to make on-line purchases (Werbach, 2000; Hagel & Singer, 1999; Amazon.com, INC., 2002b). Amazon’s e-alliances have extended to the UK, France, Germany and Japan. Amazon has also developed close alliances with other big book distributors and publishers to strengthen its e-commerce capacity. By doing so, Amazon is able to provide its customers with lower prices, a vast selection and speedy delivery. For example, as soon as an on-line order for a book is received, Amazon passes it immediately on to its partners if the book is not in Amazon’s stock and makes sure the delivery is in its next daily shipment to Amazon’s facility. As soon as the book arrives, Amazon repackages it and delivers it to the customer. In this regard, Amazon saves its costs of inventories through its e-partnerships (Hagel & Singer, 1999). Amazon was hailed “a model of a successful, efficient, constantly evolving Internet information broker” (LaPorte et al., 1997, p. 1694).


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