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This step while it was expected, send earlier, than observers predicted the majority, that isone more copy where Amazon operated actively and are compelled to respond other players ofthe industry. In comparison with books, such products offer higher profit margins and to forcesome pessimistic analysts to reconsider the opinion on long-term cost of the action.All production of Amazon cores, Hal Varian, the economist from University ofCalifornia, names information of the goods, products which have distinctive features andtraditional products behave differently.The information of the goods is often necessary to select tests before purchase, cost ofpricing on the basis of (especially for online of the digital information is easily duplicated)becomes inappropriate, as well as the information of the goods very experience, application ofstrong emotional preferences. (Eisenhardt, 1999)Mission of the company is spoken nothing about books, according to its web-site, Amazonaspires to become an authoritative source of the information for products.
Background of Amazon.comBusiness at Amazon had been begun by Jeff Bezos who studied computer sciences andthe electrical engineer in Princeton before worked in investment-bank till 1994. His interesttowards Internet as the consumer environment begun when he saw paces of growth in WorldWide Web traffic in spring of 1994.As Bezos had said in interview, I have come across statistics that paces of growth of use aweb there were 2300 percent a year....It has appeared, that though you could not measure baseuse, it is possible to measure growth rate. And things seldom to grow so are fast....Simplyinterestingly, that I can tell, that initial conditions were non trivial.And consequently it seemed that the web is going to receive very big very quickly. Thenearest objective of business Bezo’s in receiving higher quickly returns reflects understanding byincreasing feedback of economy, motive power in the industry of the software that is mainprimogenitor of Amazon.Really, history shows how Bezo had chosen books as its area became a part the Internetof folklore. In summer 1994, he intensively investigated various products to sell through theInternet, and then has chosen from the book among 20 various candidates. (Hagel, 1999)He along with his wife moved to Seattle to take advantage of the big stock of area oftalented computer programmers, and information of the goods, on a fragmentation as a supplyand demand are concentrated to a possibility, provided the fact to books, also inventory demandsthe book retailer being require easier meeting with communication with what distributor’sconstitutions with a stock in the house. It is important to note, that from the beginning, Amazonworks on business-model it is constructed on use of the Internet, instead of from the point ofview of offering the goods or service.