E-commerce Amazon Innovation

E-commerce amazon InnovationDoes it pay to be the first proposer in e-commerce? The case of virago.comThis case study outlines the advantages and disadvantages of the early adoption of e-commerce victimization Amazon.com as an example. According to a study, being first in the trade does not guarantee large mart share. According to Shankar et al leaders in the market for personal computers, video games were covered by novel entrants. Hence, order of entry does not necessarily make sure a leadership in the market or continuing rewards.According to the author, faux over rides innovation in the e-commerce bazaar due to quick technical innovation, fast movement of information and weak patenting laws. Innovation is some quantify seen as a risk due to the high cost, less chances of choice and imitation. First public movers whitethorn be able to switch costs as step towards gaining an edge in the e-commerce market. However, that is not long term.It is most good for companies to preve nt transfer of knowledge gained through experience since this will piddle obstruction to new entrants and there will be few competitors. scarcely this is not practical. On the other hand this may create restriction to company as it may continue to invest in ancient technology.There may be advantages of not being first mover in the e-commerce market. It is really risky for a firm to enter the market when there is uncertainty. Followers learn from mistakes that first movers make and attract guests to towards their harvest-festival by projecting incumbents product as inferior.First movers may go for failures because of the same routines or patterns of conducting business as was before moving to e-commerce. Companies may need to change depending on the type of business, geographical area and cost.Amazon was one of the first companies to have an online book entrepot and is very favourite in the US. They do not have a physical store (Just a website), which would take order from customers. Amazon was the only online store that provided later on sales service to customers when it allowed customers to search for books that were hard to find. It also offered comparative obtain where the site would give suggestions where else the book could be found. They also introduced member programs where a customer could earn commission by introducing customers to them after every secure they make. Amazon believes that customers online look for brand names. They also maintained records of customers buying habits and buy history. They have invested 40% of the revenue in brand building and customer loyalty. Since Amazon is first mover in the market it has set standards so that other can follow the same pattern.The strategies used by Amazon are such that they have a lot of repeat customers and the shoppers run short used to buying from them. Innovating and patenting are very important to companies development.Many customers unravel to buy from websites that are tried an d tested rather than new websites. Hence, it is very important for new companies to follow strict rules and guidelines in order to prove that they offer something unique and different from what others do.ReferenceKamel Mellahi, Michael JohnsonDoes it pay to be a first mover in eCommerce? The case of Amazon.com ostracism Business School, Coventry University, Coventry UKManagement Decision 38/7 (2000) 445-452MCB University PressISSN 0025-1747