International Business

International Business CASE STUDY (20 Marks) Amazon, a successful ecommerce company was founded in 1955 by Jeff Bezos, in Washington. It began operating with only one book sales store. Now it extends to a very wide range of other products, including DVS, music CDs, computers, electronics, clothing, furniture, etc. The founder of Amazon took full advantage of changes in technology. Since a number of publishers and titles were existing and there was a poor structure of the traditional books market, the idea of setting up an online virtual bookstore that gave the biggest choice of products to the world came forth In addition ;

Amazon developed a client’s interface to seek the consumer’s experience for improvement and maintained a data base to know more about its customers. Amazon acquired most of its online music store rivals and started marketing online as well as offline. Amazon launched the innovative and bold marketing strategy to provide customer with free delivery service and free shipping service. Amazon’s objective was to maintain its free and fast delivery policy even at low profit margins. The price of Amazon online products generally reduced by about 10%.Therefore out of 40 million customers, 30% customers was online customers. For this reason Amazon founder confidently declared “Perhaps consumers will go to physical store shopping, but certainly not because of the price”.

Answer the following question. Q1. Give an overview of the case. Q2. What were the reasons for going online for the sale of books?