Thesis: Though
electronic commerce is at infancy but Amazon.com
due to its strong organizational as well as goal
oriented strategies and team work along its excellent
customer oriented policies have gained tremendous
economic profits and recognition among the other
competitors of this global village.
Introduction
With the changing trends of globalization and
the advancement of modern technology, the development
of e-commerce has boomed in the past few years.
This Internet based business has motivated many
entrepreneurs to be a part of this monetary potential
world. This online world of business is in no
way less then the real retail business stadium
as we find both large and small markets gearing
various products for a just click away purchase
and free tour.
However, not all companies are succeeded in this
business world handles by the advanced technology.
Companies usually fail to achieve complete success
and are not able to face the challenges in market
via Internet. Due to their unimpressive and non-persuaded
marketing capacity as well as other weaknesses
they either became bankrupt or failed to achieve
success.
Causes of failure and success of an e-commerce
company
FAILURE: Research says that usually 68-80% of
e-commerce business fails with in the initial
five years of their existence. Despite the fact
of generating a variety of activities, enough
profit is not generated to sustain the company;
so choosing a business that is not profitable
is one of the main causes of the e-commerce companies
to result as failures. Another reason is the inadequate
reserve cash, which is to be calculated before
starting any business. It is very important to
identify the demands and need of the consumers
as well as to understand the market and the needs
of the consumers. So the inability to define clearly
and to understand the market demand n the needs
of the customer and their buying habits is another
reason for failure. The pricing strategy is a
very important aspect that either leads to complete
failure or success. Anticipating the cash flow
needs to be followed by a well planned and calculated
strategy in order to achieve success. The marketing
strategy should be immensely strong and effective,
depending much on single customer or few customers’
diminishes the chances for the future success
of the business company.
So it is always preferred to have a large base
of even small customers to avoid failure. Moreover,
having a large base of small customers is much
preferred. If the productivity and growth is vast
and sudden it becomes difficult to manage the
high volume and also to meet the deadlines for
paying the loans back. So this results into failure
as the growth is not controlled under a well planed
and calculated strategy. Another reason for the
failure is the focus of one hand power; it should
be teamwork and all the members of the company
should be given separate responsible task whish
they have to meet and discus to each other in
some annual or general meeting held by the management
of the company. So believing the owner can do
every thing is an illusion and leads to complete
failure.
Therefore, almost every company getting into
the Internet business is doomed to fail unless
the promoters really work hard at reducing the
possibilities of failures. However among the common
causes to the failures, many other also come to
our understanding like the rigid E-strategies
or giving space for the technologist to set business
strategies into the e-commerce companies, not
focusing on the prevailing market-customers competition
and not leaving apart the old business tactics
to giving room for new innovations as well as
possessing limited imagination and not understanding
the role of web-based markets to e-commerce business.
However, the implementation of effective business
strategies and a strategic management process
for the betterment of the company is needed for
achieving long lasting success of an e-commerce
company. Apart from the above reasons, there are
many other possible reasons for the failure of
any e-commerce company. These include, the inability
to deal with the suppliers, employees, customers
and other variety of people, as well as the bad
pricing, ignorance of government restraints, as
well as inadequate knowledge and experience of
market and not taking the competitive environment
seriously.
SUCCESS: Therefore, in order to avoid an e-commerce
company to fail, one needs to build and E-business
strategy rather then a technology or focusing
on traditional business tactics. It is also required
to develop a friendly and warm informative environment
to produce a strong basis of market knowledge
–customer competition. A strong communication
and persuading relation with each customer is
also required. Further in order to avoid failure,
it is also important to introduce new and unique
products to keep the customers coming back as
there is no entry barriers on the Internet. The
most important thing to realize is the emerging
challenges in market and the advanced tools to
coup these challenges and at the same time keeps
a hand on maintaining a balance in customer and
company relationship. Meeting the demands and
having complete knowledge of market values, the
profit and loss strategies as well as a very strong
team management with a goal oriented policy is
very important for any e-commerce company to succeed.
Nonetheless, an e-commerce company in order to
succeed, needs to developed a strong and impressive
structure and work thorough a effective organizational
process with a strong and skillful management
program that may help guiding the foresee change
or rapid growth in the market among the other
e-commerce companies. Another important thing
is to mobilize not only the resource but also
the leadership, management and workforce of the
company in order to distribute a systematic approach
for new business results in a manner that is faster,
not much expensive and possess sustainable skills.
Therefore, in order to attain huge business benefits
and success in e-commerce companies, one needs
to have a speed of action along clarity of its
key objectives as well as an effective coordination.
AMAZON.COM DOMINATING THE E-COMMERCE WORLD
Amazon.com was launched in 1999, which is an e-commerce
best known as the first online retailer of the
Internet world. Though other retailers of the
same kind emerged for electronic commerce, where
many were bankrupt and few closed their companies
but none succeeded, as much did Amazon.com.
Amazon is presently ruling the Internet business
with its best marketing techniques and expertise
in relation to the market trends and demands of
its customers. It is booming through out the world
of e-business with its wide range of books related
to a variety of subjects and topics, committing
a major source of income as well as also succeeded
in marinating brand names. It is the only website
that contains altogether web books, business brands
and retails on a single web-based business. Therefore,
Amazon does not only leads to sale books but also
offer a variety of electronic items as well as video,
music, health and fitness, wireless cell phones,
automobile, house holds, gifts, software, hardware,
kitchen utensils and many more stuff. It therefore
contains items related to all ages, all interests
and all fields as well as all areas.
Where the electronic business fashion is simple
to understand as it provides a lower cost to its
consumers due to the fact that they have lower
operating costs, thus hold less inventory than
the traditional stores in the market where we
have to go personally shop to shop for purchasing
required stuff. On the other hand Amazon.com has
significantly grabbed the electronic business
by selling its online books and now electronic
items and other stuff. Nonetheless the effective
management and consumer identification in the
market lead Amazon.com to achieve tremendous success
in the filed of e-commerce. It in true sense made
business via Internet a wealthy way to improve
profits and increase revenues. The strategy to
work better and adopting a strong base of selling
products marks Amazon different from the rest
of the e-commerce organizations. Its prudential
approach generated a marginal increase to the
revenues as well as expanded its existing commercial
activities.
Moreover its strategy not let the backlash of
e-commerce effect the margin of profits also not
to prevent nonprofits from getting hands to benefit
from Amazon specifically when other e-commerce
seems to be slow. Even in such circumstance when
the market is slow, Amazon also has enjoys the
potential to reach a broader and globally customer
base with a steady increase of revenue from its
sales products.
Furthermore, the efficiency in dealing the customers
and making them a priority as providing exceptional
customer services continuously focus on them,
makes Amazon.com on top of all the other e-commerce
companies. Nonetheless the determination to achieve
its goal to build the most customer-centric company
of the universe with the ability to offer a healthy
customer service both domestically as well as
internationally has marked a great difference
among the competitors of e-commerce since the
last few years. In order to achieve success in
their goals they hire local employees in foreign
countries as they did in Germany and U.K. this
not only helped them gathering information about
the local market and the demand of the people
of these countries but also introduced more channels
and branches of Amazon.com in these foreign countries
to provide them a familiar look to this e-commerce
company. For instance, in United Kingdom Amazon.co.uk
and for Germany they made Amazon.de. This was
a brilliant idea for attracting the locals of
foreign countries towards its business in regard
to expansion its customers and increase in profits.
Conclusion:
Globalization has changed the marketing and business
trends. Now one can do a market survey and also
do retail purchase via electronic media by just
sitting on a seat with just a click away. Though
the concept of electronic commerce is a new and
still at its infant stage but it is growing faster
and gaining more and more recognition. Amazon.com
has immensely gained economic profit with recognition
in e-commerce all over the world due to its strong
organizational and effective team management strategies.
But the most significant and distinguishing quality
of Amazon.com is its customer relation management.
Its effective customer relation policies and meeting
the demands of its valuable customers are the
key element that marks a distinction to its success
from the other e-commerce companies, both who
are successful in e-commerce and who have failed
either due to bankruptcy or income loss had to
close their companies.
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