The company has a bookstore business which is on line, it also has come up with various lines of products such as MP3 formats, VHS, CDS, electronics, video games, furnitures, apparel, computer software, toys, and food. The United kingdom, Canada, Japan China and France are places within which the Amazon. com has established its websites (Trevino, 2005). The company also offers shipping services globally to places where the companys products are distributed.
The Amazon. com as one of the leading companies in the electronic commerce business has faced various challenges which pressurizes its operations. One of the pressure the company gets is the need to be effective in the data management of the customers who conduct transactions with the company.
Montes (2006) posited that business operation on the net is not easy to manage. The company is always challenged by the issue of tracking down the various channels through which business operates and to come up with a good collection of data in order to know how the sales of the company are progressing.
Where the collection of data is not well managed, it would be hard to know what is exactly taking place in the business. Many companies running the e commerce have been unable to track down their data effectively and ended up operating the business blindly.
The amazon company has had challenges resulting from the need to ensure that SEO-finding of the company is effective and also ensure that traffic over the world of Internet is sufficient (Lefebvire, 2006). The company has to fight with the many competitors who have emerged in the e commerce business.
For every business to succeed in the e commerce, it is important to ensure that while customers are shopping for goods over the Internet they can be in a position to see the website of the company on the front page. If a company is not in a position to appear on the top while the others do, chances are that very few customers will get information about the companys products and this leads to less sales (Strander, 2002).
The company managers are always on their toes trying to fight new ways of expanding and diversifying the companys product. With the increase in the the number of companies which are taking part in the e-commerce, it is very dangerous for any company to reach the comfort zone. Dakota (2004) posited that the new companies in the market have tried to come up with substitute products which are offered by the amazon.
These competitors are aggressive and always fighting to win a great traffic on the net by using various links and proving to be the most attractive home pages on the net. The amazon company has the pressure of ensuring that it utilizes the modern technology and ensures that it secures the best position in the Internet world. Application of strategic planning is also an important aspect. The company is always in need of attaining the best strategies to maintain as a leading company in the Internet.
The need to secure the best system intergeneration for the company is of utmost importance for the success of the business. The Amazon. com has the pressure to ensure that its softwares are effective and that it is in a position to secure disparate systems which include inventory management, quick books, payment processing and order processing.
These equipments are of utmost importance to ensure that the communication system within the company is effective. Failure to afford these items the communication system in the company gets to break down.
According to Vessel (2006) the result is that the tracking of the channels through which the business operations of the company are taking place becomes hard. A business needs these systems if it wants to be in a position to measure its performance in the past, the present and future performance. With this facilities the company is able to compare its performance with the competitors and know what business strategies it needs to use in order to keep leading in the e commerce business.
Quinn (2001) posited that the other challenges faced by the Amazon. com is the need to ensure that the product sourcing methods and procedures are effective, margin shrinking and rising fees are also important issues. This issues mainly occur in the auction scenarios but it is important for every business to ensure that any challenges that have great effect on the activities which helps to improve the function of the business are tackled first.
Failure of putting measures to control the challenges facing a business leads to the going down of the organization and the weakness in management skills. A company needs to first ensure that its operations are effective before it moves to the next step of considering expansion issue. Without an efficient operation and management, a company may not be in a position to realize any profits.
The Amazon. com is also pressurized by the need of change and adjustment to the ever changing infrastructures and the emergence of new products in the market. According to Winston (2003) there have been new industries coming up in the market with new products and infrastructure and the challenge is overcoming the obstacles which may prevent a company from adjusting to the changes.
Virtual or digital products are a good example of the products which have emerged into the market and customers are in a position to access them by downloading the products from any destination. The soundtrack as one of the products gives the customers the power to decide whether they want to retain the product in virtual form or whether they would like to be accessed in the physical form.
The challenge which is associated with this products is looking for the category where this products may placed considering the industry category which traditionally used to host the products and the new digital dimension in which the products take (Short, 2004). The issue of application of intellectual rights on property is also difficult and the company get problems while choosing which customary laws to apply.
The emergence of new industries in this sector is very hard to predict. This prediction is important as it is used by a company to determine the future expectation of market share and to plan for the strategies which need to be applied in case of many competitors coming in the market. The multimedia coming into the market was one of the threatening competitors Amazon experienced and the way forward for this sector is still not well defined. This means that the company is faced by unpredictable occurrences.