Amazon Case

When you think of Amazon you normally think of them as a book seller. Now they have expanded into the whole online deals and auctions. They sell anything from books to video game consoles and games. If you need to find something for cheap then you would go to www.amazon.com to see if they offer it.

As I read the closing case on Amazon I noticed that they were not moving away from it core competency but they are trying to stay a little ahead as being leading online retailer. They are trying to keep their numbers up and beat out the competition but they have so much competition that it is just hard. Amazon is slowly falling behind Walmart in sales. Amazon was only at 4.1% where Walmart is at 5.9%. With the decline of sales for Amazon they could lose that leading online retailer title.

There are three components or services that are offered at their home base. They have a simple storage service or also known as S3 is a service that Amazon charges 15 cents per gigabyte per month. It is for businesses to store data and applications on Amazon disk drives. Having this service available to businesses is a great thing since it important for businesses to have alternate backup plans.

Another component or service is elastic compute cloud or also known as EC2. This service is there for Amazon to rent out processing power, starting at 10 cents per hour for the equivalent of one basic server. Having extra power for a company so that they do not have to rely on their own processing power.

Mechanical turk is a service that combines processing power with networks of real people who are paid to the kind of work that machines cannot do well. This service is the best for both business and people. With a lot of the technology being ran by computers it is just known as possibly being a problem with failing.

When Amazon goes and tries to make sure that everything that they have for services is fully operational. If they go and make sure that every company is satisfied then they can go and be number one again in online store and sales. They just need to make sure that everything is always fully operational.