Startingwith pure book sales, Amazon gained an increasingly strong position in themarket during the years. As pure online-retailer the company has developed intoa marketplace, which in turn made it possible to enter other market segments. Thecollected customer knowledge of the new entered market segment created theconditions for the expansion of the various attractive niche.
Many competitors,who also want to get involved the service offerings that Amazon alsorepresents, may find it difficult to gain a market share, because the Amazonbrand, which already has a lot of customers worldwide relying on and relying onthem. With it sheer mass Amazon managed to generate sales on the scale thateven minimal margins cover the fixed costs. To continually increase this mass,Amazon is developing numerous innovations that can improve or shorten the wayto the customer for facilitating sales. Amazon is taking on a special role asfor many consumers. The company hasdominated e-commerce and left its direct competitors behind to continues todevelop into the growth driver of the online retail sector. Most people are probablysearching for products on Amazon, even if the purchase is made elsewhere.Because Amazon’s cost structure is extremely optimized and it can almost alwaysoutperform the stationary retail and some other online retailers with a lowerprice.
However, because Amazon not only generates its own sales, but also makesits sales infrastructure accessible to other sellers, another significantproportion of online sales is actually made via Amazon. Amazon, which began trading and distributingbooks, has built, expanded and, most importantly, diversified over the past 20years. Many competitors, who also want to get involved in just one of theservice offerings that Amazon also represents, are in a difficult situation togain an access in the market – because the Amazon brand, which already has alot of loyal customers worldwide. Reliability, quality, price, efficiency,etc.
, have already made a permanent impression on many markets a competitor. Thelogo of the group shows already an arrow, which leads from the letter A to Z.Amazon really has everything from A to Z and in the future, it can be assumedthat the company from Seattle will employ this strategy in every new market orsegment