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Research Paper Draft 1
Research Paper Draft 1
Denise Daquilanea
Padgett
ENGL 102-027
November 22, 2016
The Amazon Effect
Amazon.com is one of the Worlds most innovated companies, providing services to
consumers, sellers, enterprises, and content creators. A company that began in 1994 selling
books has grown to a company selling over 200 million different products ranging from clothing,
electronics, to food items. The company sells the most products in the United States. In Mexico,
China, and Brazil, they only sell about 1.5 million products, which is over 200 million less than
the United States. Furthermore, the company operates through two different segments, the North
American segment that focuses on retail sales and consumer products through North American
sites. The second segment is the international segment, which focuses on international focused
locations and looks at export sales outside the United States and Canada. Despite Amazons
struggles in the eastern countries, the company still reigns as one of the most successful
companies in the world through its marketing techniques and focus on customers.
What sets Amazon apart from other companies, and is a primary explanation to their
success is their focus on the consumers. The companys current business statement is We seek
to be Earths most consumer-centric company; to build a place where people can come to find
and discover anything they might want to buy online. The company puts their focus on their
consumers and what they do like, do not like, what they want to see happen and what they want
to change. This method works for the company; it is what helped them become one of the most
successful companies in the world. In Amazon: Love Them? Hate Them? Lets Follow the
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Money, Treanor discusses Amazons three primary consumer sets: consumer customers, seller
customers, and developer customers. Rather than viewing their customers as a whole, the
company views them in three different subgroups, which helps them cater to the needs and
desires for each group. All three of the the consumer sets use the website for different reasons,
Comment [TC2]: ?
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Unlike Amazon, 80% of Alibabas merchandise are fake products, such as a Gucci purse being
sold for 300 Yuan, which is about 50 US dollars. Comparably, an authentic Gucci bag goes for
around $800-$2000. In Humbled Amazon Turns to Rival Alibaba for Help in China,
Cendrowski argues how even though the majority of the websites products are counterfeit, they
still sell. The reasoning behind this is because essentially, the Chinese are cheap. In America,
consumers typically look for the quality over the product over the price of the product. While
they still may not purchase the most expensive, top rated product, they still purchase a product
that is authentic and reliable. In China, consumers look for what is cheapest. Name brands and
authenticity is not important to them. Cendrowski states that he relies on Alibaba more than
Amazon for the prices, only using Amazon as a back-up for when he cannot find a product on
Alibaba.
Although Chinas economy is expanding at one of its slowest pace yet, revenues in
online shopping are soaring, and are expected to almost double in the next few years. In fact,
China is considered the leading country in e-commerce by a landslide. The main reason why the
countrys numbers in e-commerce is so high is because a vast majority of their retailers operate
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