Noinnovation has changed the world in recent decades as fast as the Internet.
Terms such as “E-commerce”, “Online trading” or “Onlineshopping” have become established and became an integral part of theeveryday vocabulary. Companies are trying to optimize communication with theircustomers on the Internet. They therefore have an interest in learning howusers deal with this medium. Innovationsare for the development and progress of companies of fundamental core issue to grow.Successful companies like Amazon has been at the forefront of the mostinnovative companies and were able to significantly increase their market valuefor the last years. It is remarkable that Amazon either created a new market orchange fundamentals of old markets with new technologies and processes. A hugeselection of different products, low prices and outstanding customer servicewas and still is an important pillar of Amazon’s success.
This is especiallyremarkable, because the company survived the difficult market conditions suchas the dotcom crisis at the end of the 1990s and was able to prevail in ahighly competitive market with low margins and strong competitors. As a result,the small start-up from its beginning has become one of the biggest companiesof the internet industry. With Amazons diversification to adapt to newtechnical possibilities it has expanded its business into many differentindustries.
Nevertheless, Amazon as an innovator with a revolutionary businessmodel, succeeded in establishing a clear image of its performance in the mindof the consumers in a very short time. This development can be attributedprimarily to a strong vision (“creation of the most customer-centriccompany in the world”) and the recentness of the medium. Purchasing on theInternet was a real experience for users back in the late 90s/early 2000s andAmazon pioneered the early users and became synonymous with internet shopping. Theentry of Amazon into new market segments in the past years has changed many B2Cmarkets from scratch. Due to its relevance for very successful business modelfor innovation in the Internet, this project focuses on how Amazon has managedto became the successful global company which it is right now and whattechnological-driven changes in the strategies were made.