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Competition and Business Strategies at Amazon Throughout its Development

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Amazon. com’ s inception. Not only were the company’ s employees and executive staff considered to be stakeholders, but by its very nature, the company had to partner with all of its suppliers and affiliates making them part of their stakeholders also. Publishers and clearing houses all were coming on board when the realized the potential marketing increase to their titles. Contracts were negotiated with all supply chain members, which gave Amazon. com a clear advantage in pricing across the supply chain. Consequently, this also had the effect of muscling out many of the smaller mom and pop booksellers that were out there, much to the chagrin of many.

Amazon. com also extended its strategic relationships, with a deal leading to the co-branding of Dell Computers and Amazon. com home pages on their respective websites. Amazon. com also announced strategic investments in the following companies who they believed were aligned to offering customer value through selection, service, convenience, and community. (Stockport & Ivory 2004: 653)These included such participators as Drugstore. com, Pets. com, Della & James’ wedding-gifts, Homegrocer. com, Gear. com, Exchange. com, Biblinfind. com, as well as local and regional auction houses. Their supply chain is growing more and enormous and diversified each day.

Each one has become a stakeholder that grows equally more and more dependent on Amazon’ s link in the chain of online retailing. Currently, amazons being a publicly-traded company, their stakeholders are also their stockholders and with this come a higher level of corporate and financial responsibility. But well beyond even these important concerns are the customers that shop there. Stakeholder ethics has permeated the company and those who use it are an interactive part of the process as well.

Customers become stakeholders, especially those that turn around to sell their products through one of the many merchant arrangements for many different levels of entrepreneurship.

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