Amazon.coms E-Business Model Term Paper Example | Topics and Well Written Essays - 750 words

amazon.coms E-Business Model - Term Paper ExampleHowever they soon diversified their portfolio and ventured into selling DVDS, CDs, and MP3 downloads softwares, games, electronics, food, toys, furniture and apparel. They started spreading out from United States and established bases in Canada, the United Kingdom, Germany, France, Japan and China.viragos growth and diversification of business into different genres helped it boost its sales. It made inroads into different products and excelled at it, plain by virtue of its branding. The growth and diversification strategy pursued by Amazon created more customers for Amazon and with that its revenues also shot up.On the cons end, Amazons growth created more expenses by expanding so rapidly in different genres. Its distribution costs also rose up in the process. I pure tone that Amazon could defend taken a gradual evolution into expansion, starting from U.S then fol minusculeing up in other North American and South American countri es before disembarking to Asian and European countries. This would have ensured a slowly and steady growth and expansion across the borders and kept the expenses in check.2. Determine the tint if Amazon.com had split up and become a family of brands (for example, Amazon for books, Super toys for toys, etc.), each with a different normal face but all run by the same parent company. split up up into a family of brands would not have worked for Amazon. This is because, Amazon the brand attracted people and it was this branding loyalty which later translated into sales and revenues for them. Splitting up into a family of brands would have also risen up its costs, something that Amazon would not want to take a chance given the fact that its competitive edge is built on its low costs.Under its cost leadership strategy Amazon has stood out by offering rock-bottom prices. It provides good quality products at low prices. Its prices cant be matched by its competitors. This makes it an obv ious choice