As a worldwide online bookseller, Amazon needs to provide its customers the online service that the brand is anticipated. Due to this reason every year the company need to spend a huge sum of money on technology support and the system maintenance. Furthermore as the number of consumers raise up, the money spent on this aspect will also going up under this situation the company will be in a dilemma zone.
Another problem that Amazon faced is their delivery service. Because the company does not have its own delivery department, so most of the delivery services are provided by the external companies, as a result the level of this service is not steady in different country and area. It is no good for Amazon to keep their reputation and custom loyalty.
There are still some potential negative effects to Amazon when the direct trade taken place between the private seller and the buyers, because these kinds of products and services are not provided by Amazon itself, so like the third party delivery service the quality cannot be guaranteed. Sometimes this will cause the misleading to the consumers that the services and products’ quality cannot reach to their expectation, it is no good to the company’s brand image.
机遇—Opportunities
Due to its leading position in the online book selling industry with the good reputation, Amazon can easily build up some unique relationships among the famous publishers, which can give Amazon the right to provide some exclusive products to its consumer. That will make Amazon have much more competitive strength than other competitors.
As a listed company that gives Amazon variety channels to get the investment. As a result Amazon will have sufficient financial support to upgrade its service and expand its power to earn more market share.
Amazon has also produced a wireless device “Amazon kindle” which is a software and hardware platform developed for rendering and displaying e-books and other media via wireless connectivity. [4] It is a great chance for Amazon to develop its e-books market share because users can only buy e-books for this device from Amazonkindle.com. As a wireless device, it is also convenient to directly download the required e-books from Amazon and some other kindle content providers.
By using the advantage of economic of scope, Amazon can make its products more diversified, not only the books but also some derivatives of the multimedia to get more turnover in the future. And Amazon do realize this aspect the company have controlled the LoveFilm.com by earning its share, that give Amazon an opportunity to enter into a new market. [5]
To build up a sophisticated membership management and service system, this can provide the customers better experience when they are shopping with Amazon. This will help Amazon to consoli
