Competitive Profile Matrix for Amazon Essay Example | Topics and Well Written Essays - 500 words

Competitive Profile Matrix for Amazon - Essay Example Why did Amazon.com rally and how did it build the company to become leader of Internet commerce and enjoy its first annual profit in 2004 First, Amazon was a pioneer in bookselling, with only an Internet site with easy access and no bookstore chain. It was able to stock warehouses and avoid the middle man, thereby offering a discount that didn't exist at that time in regular bookstores. Second, when the business grew beyond expectations, Amazon's CEO Jeff Bezos put the money back into the business instead of trying to make a profit (Frey & Cook, 2004). Realizing that bookselling by itself was not making the best use of technology, he added music CDs, movie videos, toys, electronics, software, video games, and home improvement, putting the company in direct competition with eBay and Wal-Mart (Mullen, 2005). In order to make full use of Amazon's popularity, he then created an online shopping portal, adding apparel from companies like Nordstrom and Gap, as well as sporting goods, gourmet foods, jewelry, and health and beauty (Timeline, 2006). But, for purposes of Amazon's competition in the field of books, how does the s ite compare with other bookselling sites online The following Competitive Profile Matrix, based on specific success factors, is a comparison of online companies that sell, among other things, books, but the rankings relate specifically to bookselling from 5 (the best) to 1