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S1_Amazon_Answer_Guide - provided to consumers for a price...

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Amazon: Answer Guide 1. What is Amazon’s strategy? Is the company moving away from its core competency of being a leading online retailer? Support your answer. Amazon is diversifying and finding ways to utilize resources rather than allowing them to sit idle at times. They are still pursuing their original line of business, while exploring ways to become more profitable through the marketing of the processing power and storage capacity that was not being used at times. 2. Why is Amazon competing with Google and Microsoft? Is this a wise strategy? Compare the strategies of Amazon, Google, and Microsoft. Amazon is competing with Google and Microsoft as a way to make money on resources that it already owns as part of its original business model. It is a wise strategy since the processing power and storage are available to be used during periods of time. Google and Microsoft are web-based, global computing platforms which are
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Unformatted text preview: provided to consumers for a price. Amazon is following their lead since the resources are available. 3. How could a business reduce the risks of overspending on IT by using these Amazon services? By reducing its initial capital expenditure and ongoing operating and maintenance costs, a business can reduce the risk of overspending on IT. Amazon offers a number of computing, storage, and other services that make its infrastructure available to businesses and individuals to help them run the technical and logistical parts of their businesses. These include the Simple Storage Service (S3), the Elastic Compute Cloud (EC2), and the Mechanical Turk. Therefore, businesses do not have to spend heavily on infrastructure and equipment and can acquire ongoing services as needed, at low cost....
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