University of Phoenix
BIS 219 Introductions to Business Information Systems
Amazon Evolution Amazon is the largest online retailer with annual sales that exceed $10 billion. Jeff Bezos founded Amazon in 1995 with the idea of selling books through the web site as he thought only the internet could provide customers the convenience of browsing many book titles in a single sitting. Since 1995, Amazon expanded its business by offering any kind of items such as tennis rackets and jewellery (Small Business Notes, 2009). Many analysts criticized Amazon because it has not fulfilled its original idea to revolutionize retailing; it simply switched from being a bookseller to a service provider. Amazon spent $2 billion dollars to build the infrastructure of its online stores within 12 years. Amazon’s success relates to IT infrastructures such as Simple Storage Service (Rainer & Turban, 2008). This research paper will discuss whether Amazon is moving away from its core competency of being an online retailer; it will present areas where Amazon is competing with Microsoft and Google; it will also address Amazon’s database and its uses; finally, it will describe how Amazon uses both e-business and e- Commerce for B2B and B2C.
Microsoft and Google vs. Amazon Amazon has invested some $2 billion dollars on their infrastructure, which has made it one of the biggest and most reliable infrastructures in the world. However, its profit has drop down to about 4.1% which is less than Wal-Mart’s 5.9% (Rainer & Turban, 2008). Amazon currently only uses 10% of its infrastructure capacity, which is why Amazon saw the need to move in a new direction. Amazon has decided to go in the direction of providing a series of computing, storage, and other services to other companies and individuals to assist them in running the logistical parts of their businesses. Google is out running Amazon in being the number one website that customers are going to for one stop retail shopping. Google has also developed websites such as My Space where customer can come online to communicate with their friends and family. In addition Google owns a very popular video website known as You Tube. This website enables customers to be able to download their favorite music at reasonable price at their convenience. Amazon is competing with Google and Microsoft by trying to build an Internet Web-based, global computing platform for the next generation. This will allow individuals, as well companies, to be able to access all kinds of information from all over the world in a different way than every before. That is why Amazon’s strategy is wise.
Amazon’s Database and its Uses Communication in IT starts with three basic components: data, information, and knowledge. Data starts the process with the first description of the items discussed such as a transaction, product or event. These items are recorded but not organized into any type of relationships. The next component is information, which is organized data for a single person. Knowledge is the organized data or information for a large entity. Amazon has products that they sell for themselves or for others. This is organized into a variety of groups. Data that is more individualized is obtained through Amazon’s members. This data can be used for determining what products might be valuable to a certain person. Information about what items are selling and to whom, can be obtained to focus on what the customers are purchasing. This information helps Amazon in deciding on what products and services customers’ demand and what products or service need to be discontinued; this enables the company to grow.
Amazon’s E-Business and E- Commerce for B2B and B2C. Amazon’s founder Jeff Bezos states his vision, as “Amazon will be a place given the activities, expansions, and successes to date, Amazon is making significant headway on its