Amazon.Com
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- Date Submitted: 03/14/2015 11:35 PM
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Project Company: Amazon.com
Executive Summary
Team Data Relations, is a database-consulting firm, whose task has been to revise the database of our client, Amazon.com. This project paper is based on the research and fact finding work done by our four person team who have garnered information over the past 3 months. This study serves as a source of information for developing a database model.
Amazon.com is a company that operates in the non-traditional environment of the Internet. This gives the company both great advantages, such as visibility to potential customers and investors, and great disadvantages - mainly large amounts of competition. Amazon uses the advantages of being a purely online merchant excellently; where it was merely a comprehensive bookseller at it’s founding, it now offers products in over a dozen categories and has revenues exceeding ten billion dollars each year. They have also eliminated much of the competition by absorbing it into the Amazon Marketplace, a virtual mall through which other vendors can use Amazon as a broker for a small fee.
Developing a purely online business like Amazon is far from a guaranteed success. Some risks are obvious to the customer, such as the issue of trust – why should a customer give all that information to a stranger who is only promising to send them a book at some point in the future when they could instead walk into any brick-and-mortar bookseller and anonymously exchange cash for a book in hand? Other risks are less tangible – how much should the company spread out its resources to protect against outages and lessen shipping times? Still more risks are purely financial – what areas and which product categories should Amazon expand into, and how much of their revenues can they use to finance these changes instead of padding their profits. Fortunately, Amazon is not a company of fools, and they have planned all along for these risks.
Being one of the largest online retailers is not a...
Executive Summary
Team Data Relations, is a database-consulting firm, whose task has been to revise the database of our client, Amazon.com. This project paper is based on the research and fact finding work done by our four person team who have garnered information over the past 3 months. This study serves as a source of information for developing a database model.
Amazon.com is a company that operates in the non-traditional environment of the Internet. This gives the company both great advantages, such as visibility to potential customers and investors, and great disadvantages - mainly large amounts of competition. Amazon uses the advantages of being a purely online merchant excellently; where it was merely a comprehensive bookseller at it’s founding, it now offers products in over a dozen categories and has revenues exceeding ten billion dollars each year. They have also eliminated much of the competition by absorbing it into the Amazon Marketplace, a virtual mall through which other vendors can use Amazon as a broker for a small fee.
Developing a purely online business like Amazon is far from a guaranteed success. Some risks are obvious to the customer, such as the issue of trust – why should a customer give all that information to a stranger who is only promising to send them a book at some point in the future when they could instead walk into any brick-and-mortar bookseller and anonymously exchange cash for a book in hand? Other risks are less tangible – how much should the company spread out its resources to protect against outages and lessen shipping times? Still more risks are purely financial – what areas and which product categories should Amazon expand into, and how much of their revenues can they use to finance these changes instead of padding their profits. Fortunately, Amazon is not a company of fools, and they have planned all along for these risks.
Being one of the largest online retailers is not a...