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Essay / Amazon and E-commerce - 683
First of all, Amazon was founded in 1994. It took advantage of the emerging period of the Internet to develop its online shopping sector. People around the world, as long as they have access to the Internet, can visit the Amazon.com website. Nowadays, it is obvious that online shopping is a significant part of the market, but executives did not know this in the early days of the Internet's emergence. Amazon managers thus had a very good vision of the development of online shopping. Additionally, they create innovative site features to meet consumer tastes. Consumers can search for certain interior pages of the book and the search engine is very human, accessible and responsive. Secondly, not only is Amazon making the most of e-commerce, but the M&A (mergers and acquisitions) strategy has also helped Amazon gain access to the international market. In order to meet its ambitions to enter the global market, it is necessary to take certain steps to purchase some e-commerce companies in the local market. Amazon purchased local Chinese e-commerce company Joyo.com in 2004 to fully enter the Chinese market. Mergers and acquisitions can help a company increase value generation and profitability through economic scale and market share (Finance). By purchasing local companies, Amazon could expand to compete with other competitors in the local market. At the same time, it can also reduce some competitors by cooperating with them rather than competing. “In fact, five of the six most visited websites are already Amazon.com Associates. Yahoo and Excite market products from their websites. The same goes for AOL com, Geocities, Netscape and tens of thousands of other sites, both large and medium-sized, through e-commerce, which can benefit both Amazon and its customers. suppliers. On the other hand, Amazon can thus build loyalty for its own brand by attracting consumers of these local brands. Additionally, customers who come to purchase the original products will notice promotional advertisements for other special Amazon products. Another significant hurdle is the transaction cost for Amazon, particularly overseas shipping costs. It is inevitable to a certain extent. It goes without saying that Amazon's most important business is e-books. Amazon knows it's difficult to reduce transaction costs for paper books. As a result, it pays more attention to the development of the e-book industry rather than just sticking to physical books. I think this is why we will always see Kindles promoted at any time when we log on to Amazon.com.