Amazon is the first firm that penetrated the e commerce market regarding to the sale of books. More precisely,Amazon was created in 1995 as the first operator in the innovative sector that is e commerce.
With the development of the Internet and all the services related to it, many competitorsappeared.
Thanks to its role of pioneer on the sector, Amazon through its creator Jeff Bezos handled to set up a strategy based on two axes:
1/ Amazon cares about the innovation. Indeed,Jeff Bezos decided to invest large amounts of money in the RD in order to acquire new techs and new ranges of products.
2/ The website is also highly involved in the client relationshipmanagement. Indeed, Amazon has always set up inquiries in order to know whether the consumers are happy or not with the services. Otherwise, as the first operator in the sector, Amazondecided to reduce its products’ prices as low as possible.
But such a strategy implied many investments at the beginning and in the early years of Amazon’s life, the website suffered from itsmajor leveraging.
Amazon’s will to extend and remain a e commerce leader, led the firm to an horizontal integration. For such purpose, Amazon acquired many competitors such as Telebook.Besides, Amazon established itself in many countries such as United Kingdom, Canada, and Japan.
The other mean implemented by Amazon to remain a leader was the vertical integration:Amazon.com signed many partnerships with the major web operators, as Facebook, Yahoo!
Moreover, Amazon relied on high quality recruitment, for example William Gordon (Amazon’s director) is afamous skilled executive manager who is the creator of Electronic Arts Inc.
Then, Amazon’s strategy was to develop its range of services and products (in the music industry for example).