E-Business Essay Example | Topics and Well Written Essays - 2000 words - 2

E-Business - Essay Examplermediaries (Sarkar et al, 1996.) They atomic number 18 an electronic-commerce only intermediary business and customer relationship management (CRM) is conducted purely via their website a realistic mart with no direct contact between buyers and sellers. Amazon have created a virtualized value system done their accelerated ordering, delivery and payment of goods and services, while reducing operating and inventory costs associated with traditional bricks and howitzer stores. They have access to global markets, economies of scale and the ability to personalize. As a virtual merchant, their products are accommodate to the Internet, their business models remain a source of differentiation. Amazon is a seller-controlled site whose commercial mechanism is stiff price sales.Timmers (1998) classifies Amazons business model as a virtual community, which helps build customer loyalty and combining through an interplay of virtual and physical realities. (Hagel an d Armstrong, 1997.) Amazon strengthens their association as a virtual store with shop trolley technology (Cooke, 1997.) Shopping carts and checkouts act as reminders of physical environments. (Weick, 1995.)Amazons effectiveness as a virtual community is evident with their customer co-presence. Amazon has made customer relations the centerpiece of its strategy. (Hagel and Armstrong, 1997.) Collaborative filtering helps them reach out personalization and mass customization. Customer extension is offered via their site and e-mails.Amazons business model is now considerably more compromising as it has diversified from books and CDs to a range of products more typical of a department store. (Chaffey, 2004.) Amazon has warehouses to hurt their technical innovations. They are dependent on the publisher-to-wholesaler supply chain. Their scattering centers are placed near distribution warehouses to allow quick turn around on deliveries. (Bayers, 1999.)Amazons brand has enabled them to pur sue differentiation strategy