Business Information Systems

Amazon Evolution

By: Shannon Quinn

Business Information Systems

Due Date: April 29, 2012

Professor Bernie Cory

Introduction

In my paper I will be discussing Amazon's database, and how they use each component. In my paper will also be some issues that may arise within data management inside Amazon. Lastly I will be explaining what Amazon does and if they are reaching their goals. Amazon began to sell books over the internet directly to the customers for a much lower price than other stores or suppliers. As the years went by they added music and videos to the list. The goal of Amazon was to become a virtual retail company. People could log onto their web site and click just one time and begin their shopping. In more recent years Amazon has begun to lower their prices,

Amazon's Strategy

Amazon's original strategy was to provide a place on the internet that allowed customers to shop from the privacy of their own computer whether at home, at the library, or on vacation. At Amazon's website you can purchase anything from computers or other electronics to food and even clothes. If you are looking for it, they probably have it. Unfortunately for Amazon, there are many copycats out there that more and more consumers are choosing to use instead. My Space and YouTube are some of the websites that customers use when shopping online. Take for example Google. It is replacing retail websites like Amazon, with its own version of Amazon called Froogle. IT departments are constantly scrambling to develop the next best product so they can keep up with or surpass their competition.

Amazon's Core Competency

Core competency as I understand it is something unparalleled that a company has or can do. In addition, core competency is very difficult for another entity to copy. Wal-Mart is a prime example of a company that has a unique core competency. I believe that Amazon is moving away from its core competency. There are many other websites out there that have the same offerings as Amazon and they are no longer the only kid in the sandbox. Amazon has not met the profit marks that investors had been hoping for. Over the years their profits have gone down well below Wal-Mart's numbers. To keep investors appeased and to stay in the game Amazon has made the decision to offer computing storage and other technical services to individuals and companies.

Amazon - Wise Strategy or Not

While Amazon can certainly make some money from these computing endeavors, I do not feel that their offerings will set them apart from their competition in the market. When you go