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  • Essay / Amazon.com and Management Information System - 1247

    The Amazon model initially offered customers access to a massive selection without having to bear the costs, time and stress of opening warehouses and stores or inventory management needs. Amazon realized that to ensure that customers have a pleasant experience and that Amazon acquires its inventory at reasonable prices, they must control the transaction process from start to finish by operating the business from their own warehouses . Amazon's customer philosophy can be traced back to a letter from the 1997 annual report that expressed their priorities in providing customers with products they believe are worth buying. Amazon is trying to differentiate its operations by suggesting extraordinary methods to transact and is starting by offering online books which they can access at any time. Other value-added offerings include 1-ClickSM purchases, customer gift vouchers and immensely reviews, navigation options, suggested content and features. Amazon's strategy focuses on price reduction. Thus, increase customer value. Amazon became the market leader in online book sales by encouraging customers to repeat purchases through a proven advertising strategy that was the word-of-mouth approach. In its 2002 annual report, Amazon made numerous attempts to stay ahead among its industry competitors. These efforts include personalizing the store that caters to each customer, displaying customer reviews of the products it offers, and providing a wide selection to the customer by placing used products next to new products. Amazon has also attempted to spearhead the industry by introducing features that appeal to the customer. in terms of technology, order fulfillment and retail strategies, in the middle of the article...... in the product forecasting exercise, it will help the customers to get better deals from the from suppliers (Mellahi, K., Johnson, M., 2000).xi) Using Amazon.com CRM software technology can facilitate Amazon by providing added value to available services and product offerings, creating new products and services, an extensive network of communication channels, closer interaction with customers as well as a distinctive approach. market product and support offerings to customers (Devjee, 2009). Amazon.com CRM software certainly plays an important role for Amazon in expanding its market share and maintaining its competitive advantage. References (Information Systems, Organizations and Strategy) (Mellahi, K., Johnson, M., 2000)(Devjee, 2009)(Javalgi, RG, Radulovich, LP, Pendleton, G., Scherer, RF, 2005)( Laudon KC and Laudon JP, 2009)