Amazon’s.com E-Business Model
Donna C. Francis
The Business Enterprise BUS 508
Instructor Dr. Etido Akpan
July 24, 2011

Discuss Whether or Not Amazon Has Lost Its Identity By Expanding Into Markets Well Beyond Books Cost Leadership, customer differentiating, and focus strategies have helped Amazon.com enhance its competitive advantage (Saunders, 2001, pp.122-123). Through cost leadership Amazon differentiates itself on the basis of price; they always make sure to offer the same quality products at a much lower price. Amazon also provides its consumers with customer differentiation so that customers can always recognize and differentiate its products from competitors (Saunders, 2001, pp.122-123). Amazon applies either one of these strategies to a niche within the market. They focus on outstanding customer service as a niche becuae each niche has its own demands. Amazon.com tries to find ways to satisfy customers’ needs and expectations by offering a variety of products and services. Jeff Bezos, Founder and CEO of Amazon, constantly tapped into exactly what his customers wanted. He told Dealerscope , "We were doing such a good job with books, and we started getting these e-mails, initially for other media categories, like music, DVDs, or VHS" (Bezos, January 2003). Bezos then actively asked customers what they wanted Amazon to sell, which led to further expansion into products such as electronics, toys, kitchenware, and gourmet foods. In early 2003 Bezos reported that electronic products were the second-largest category of items sold, after books. Amazon’s mission statement states that it is the place where people can come to find and discover anything they might need and want to buy online. Satisfying consumers’ demand hasn’t made the company lose their identity, but helped create a community of customers that trust the brand. They have continued to