ONLINE ENTERTAINMENT BUSINESS

Critical Evaluation of the Issues in Online Entertainment Business

Critical Evaluation of the Issues in Online Entertainment Business

Introduction

Amazon.com is one of the foremost worldwide online retailers. Amazon is much bigger than its close competitors eBay. Top market place in online retail format allows Amazon to aim at larger customer support. However, increasing pressure to collect sales tax on merchandise sold through online websites can render the company's pricing competitiveness weak and less attractive to customers. This paper provides critical evaluation of the issues related to Amazon.com. This paper also evaluates the use of technology for operational efficiency and effectiveness at Amazon.

Discussion

The Systems and Operations of online trade are commonly recognized as online business. It is better known and defined by the Systems of various technology and information. It assists in attaining necessary actions of the company and its processes. E-business is the Operation that lives by the aid of internet. It is the Systems that comprises a variety of manners and other issues of dealings. Due to the the use of technology for operational efficiency and effectiveness at Amazon, the company maintains High inventory turnover ratio. It allows Amazon to generate revenue from sales before its payments to suppliers come due. Additionally lower prices act as a compelling proposition in attracting more customers. Amaon has perfect product that eliminates friction like nobody else can.

Transformation Model (Not -so-realistic model)

In online commerce, there's www.Amazon.com and then there's everyone else. Amazon's astonishing ability to create loyal customers is a wonderful and enviable thing to behold, but it's not a directly replicable model for the rest of us in business. Amazon's success is based at least in part on a much riskier and more expensive approach to loyalty than our anticipatory service model: an incredibly well executed version of the repetition strategy. Get the basics of satisfactory service exactly right and then repeat the customer's exposure until loyalty occurs.

The following are few examples of Amazon's friction-free service:

Your order is transmitted instantly to the shipper, often UPS in Lexington, Kentucky..

Your credit card is stored in its entirety for your convenience. (In fact, if you ever need to register a new credit card, Amazon doesn't even make you flip the card over to find and input the security code.) What's more, you can choose ''one click'' purchasing and make an entire purchase without re-entering, re-selecting, or re-considering anything: type of payment, delivery address, billing address, or method of shipment. All in all, there is almost nothing payment-wise to interfere between your brain desiring to make a purchase and your ability to instantly do so.

Amazon can help direct you to precisely the right product for you, thanks to its unparalleled use of the power of customer rankings from its millions of customers.

Amazon has a unique combination of attributes that are probably not realistic goals for most of us: being first; being huge; having abnormally deep pockets. For example, Amazon's packages can be transported to customers more quickly and cheaply than ...