Question

The benefits Amazon derived from using an information system​

Answer 1

1. Enhanced customer care – Scalability, efficiency, and security of the Amazon information systems have significantly improved communication with its staff and users. This gives the customers a rich user experience with the system since they are able to get a solution to various issues in real-time. Satisfied customers spread the word to other people thus attract more people to the website.
2. Limitless inventory – Initially, Amazon was created with the sole purpose of selling books to its customers. However, the service diversified over time to include movies, video games, music, electrical appliances, clothing, and many other products due to increased demand.
3. High margin, low prices – This strategy has played a key role in attracting and retaining more customers to Amazon through increased competitive advantage. By selling at low prices, the company is able to sell more products within a short time thus making more profit in the long-term (Claus, 2013).