Amazon’s IT Strategy Essay

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Amazon
The 'Enhancing Competitiveness Through Information Technology' article uses four elements: Customer Value Proposition, Profit Model, Critical Process, and Critical Resources as a frame to compose a business model related to information technology. Using this method to analyze Amazon’s business model we can see that Amazon’s competitive use of IT is towards the offensive, and its IT strategy leads to its business strategy. These characteristic are shown below.
As a comparatively long established web store platform, Amazon views its customer information as most valued assets instead of real estate. Amazon’s ‘Collaborative Filtering’, the use of customer data, such as purchase history, preference, and geographic location, which Amazon collected over the years allows it to provide its customers more accurate recommendations of other products while they’re browsing the website. Such technology also enables Amazon to design personalized emails and advertisement to each individual customer. Customer loyalty and intimacy is what Amazon focuses on in its value discipline (15). With its IT advancement, Amazon’s strategy is to provide its customers convenience with a 24x7 shopping channel, flexibility with a wide choice of products in different price points, and product assurance with product reviews generated by other customers. In order to achieve these goals, Amazon uses back-end analytics to review what products provide the best profit margin and customer satisfaction of marketplace users. In addition, Amazon created a social platform for product reviews which not
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