Amazon Evolution
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Amazon is moving away from its core competency of being a leading online retailer. They are doing this by offering services to companies to identify inappropriate content in images or recording audio (Rainer & Turban, 2009). With this, Amazon will not just be an online retailer; rather, they will also be providing technological services to companies. By offering technological services, Amazon will be increasing their profits little by little; therefore, I believe this is a decent strategy. In addition the components of the Amazon database are the Simple Storage Service, the Elastic Compute Cloud, and the Mechanical Turk (Rainer & Turban, 2009). With using the Simple Storage Service, Amazon will charge 15 cents per gigabyte each month for a business to store information and applications on Amazon’s disk drives. In addition, the Elastic Compute Cloud allows Amazon to lease out processing power at 10 cents each hour for the comparable of one basic server (Rainer & Turban, 2009). Additionally, the Mechanical Turk service provides businesses with a combination of processing power with networks of real people. These real people are paid to identify inappropriate content in images or recording audio. Moreover, Amazon may encounter an information overload or technological improvements or uselessness within their quest to improve the profits of their company. Furthermore, the
Business XBIS219: Amanda Pervis Axia, University of Phoenix 02/17/2013 Amazon has long ago achieved its position of being the largest online retailer with outstanding retail sales. However, while Amazon may be the largest existing online retailer, the company has failed to show consistent profit growth, and profits have actually fallen in recent times. Additionally, Amazon is facing increased competition from other websites such as Google. By 2007 Amazon had invested over…