Evaluate Amazon’s Diversification Strategy. Essay

Words: 4065
Pages: 17
Open Document
Diversification in E- Commerce

[pic]

Diana Reyes – 27828

Introduction

Economies of scope and synergies in business operations are consequences of diversification strategies. It is possible to classify companies according to the type of diversification strategy selected. Unrelated diversifiers are companies that diversify across industry, while related diversifiers are firms that diversify within the industry (Kim, Hwang and Burgers 1989). Companies pursuing related diversification over a period of time have achieved superior performance than companies following an unrelated diversification (Palepu 1985). Amazon has started its business by selling books and music, soon after it incorporated online auctions for airlines tickets …show more content…
|
|Lock-in |Switching cost |Repeat purchase supported by large database and e-mails proposing personalized offers based on the previous purchased. |
| |Positive network externalities |Dominant design proprietary business process: Shopping cart. |
| | |Customized one click featuring as a standard feature. |
| | |Personalized interface, direct advertising, target emails and facilitates cross-selling. |
| | |Creation of a network: the community of interest which allow customer to write book review. |
|Novelty |New transaction structure |Amazon used its database and knowledge to diversify in several ranges of products. |
| |New transactional content |Offers a range wider than any other brick and mortar
Show More

Related Documents: Evaluate Amazon’s Diversification Strategy. Essay

Strategic Management and Amazon Essay examples

analysis Contents Part 1 External analysis (group A) 2 Internal analysis (group B) 4 Stakeholder analysis (group C) 10 Corporate-level strategy analysis (group D) 14 Competitive-level strategy analysis (group E) 17 Part 2 Critical assessment of the analysis 23 Part 3 Evidencing of contribution to groups 28 Part 4 Reflection on group decision making…

Words 9568 - Pages 39

Key Success Factors for Amazon Essay

Through this (CRM) Amazon were able to record customers reading habits, buying habits and buying trend, which allows Amzon.com to offer different promotion and selling strategies tailored to meet customers demand and needs. Amazons diversification into other types of services (music, video, home improvement and auction) also enhances their competitive advantage because all other services links back to them faster than their competitors can duplicate.…

Words 1125 - Pages 5