Amazon Evolution
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Amazon Evolution
Jade Anderson
University Of Phoenix
Amazon Evolution
The basic strategy, and I do mean basic, of Amazon is to use all of its resources to create revenue. No brainer right? Amazon spent 12 years and some $2 billion building the infrastructure of it’s online store. It is among the biggest, most reliable, and most secure in the world (WileyPLUS, 2010). Having said this, I do need to point out that Amazon only uses 10% of it’s processing capacity at any given time (WileyPLUS,2010). The genius in this is that they can sell that excess processing power to create an additional income for the company. This is great because in the damaged economy, they can still operate and do it well. They needed to adapt to the changing nation, and they have done so quite well.
I think that Amazon is not moving away from its core competency of being a leading online retailer. Their goal and mission has always been, and still remains, the revolutionizing of retailing. Amazon is prepared to deal with the processing of data when the economy picks back up. There is a simple storage service that provides clients with a place to store data on Amazon’s memory banks for a small fee of a few cents per terabyte (WileyPLUS, 2010). The Elastic Compute Cloud allows users to use Amazon’s great processing power (WileyPLUS, 2010). The Mechanical Turk, a server where computing power is combined with networks of real people who do the kind of work those machines cannot do well, such as transcribing audio and scanning images for inappropriate content (WileyPLUS, 2010). Again, when the question is asked if Amazon has changed their initial goal, I say no. They are just rolling with the punches of the hard hit economy. Their primary source of income is still their online store. When the economy turns around and their infrastructure is operating at near full capacity, Amazon will be high on their horse because they used all their assets to make the most money...
Jade Anderson
University Of Phoenix
Amazon Evolution
The basic strategy, and I do mean basic, of Amazon is to use all of its resources to create revenue. No brainer right? Amazon spent 12 years and some $2 billion building the infrastructure of it’s online store. It is among the biggest, most reliable, and most secure in the world (WileyPLUS, 2010). Having said this, I do need to point out that Amazon only uses 10% of it’s processing capacity at any given time (WileyPLUS,2010). The genius in this is that they can sell that excess processing power to create an additional income for the company. This is great because in the damaged economy, they can still operate and do it well. They needed to adapt to the changing nation, and they have done so quite well.
I think that Amazon is not moving away from its core competency of being a leading online retailer. Their goal and mission has always been, and still remains, the revolutionizing of retailing. Amazon is prepared to deal with the processing of data when the economy picks back up. There is a simple storage service that provides clients with a place to store data on Amazon’s memory banks for a small fee of a few cents per terabyte (WileyPLUS, 2010). The Elastic Compute Cloud allows users to use Amazon’s great processing power (WileyPLUS, 2010). The Mechanical Turk, a server where computing power is combined with networks of real people who do the kind of work those machines cannot do well, such as transcribing audio and scanning images for inappropriate content (WileyPLUS, 2010). Again, when the question is asked if Amazon has changed their initial goal, I say no. They are just rolling with the punches of the hard hit economy. Their primary source of income is still their online store. When the economy turns around and their infrastructure is operating at near full capacity, Amazon will be high on their horse because they used all their assets to make the most money...