Amazons Company Strategies and Customer Acquisition Research Paper - 1

Amazons Company Strategies and Customer Acquisition - Research Paper Example The present paper has identified that despite Jeffrey Preston Bezos having a degree in computer science, he had a vision to build a network for international trade. In lights of this, Preston founded Amazon.com in 1994 as a website for international trading. Online Retailers and wholesalers as well as buyers and sellers met online globally. Amazon founders had a vision to become one of the world’s leading companies dealing with online trading. The management in Amazon.com sought to reduce negative environmental impacts as there was no physical contact between the traders. Amazon has operating earnings close to $52 million yearly. Amazon Company normally projects to make approximately $22 million to $2.2 billion within five years. Examining the business model they use, Amazon primarily switched to Linux as primary architecture. In addition, Amazon has lowered technology expenses by about 20%. However, the decision to lower technology expenses has not profited Amazon as projecte d. Considering the pricing, the strategies have changed over time. Amazon has regulated the prices through several policies, for example, an introduction of frustration-free packaging. This policy is an initiative that is designed to simply motivate the customers who purchase goods online at different times of the year. The customers feel motivated when they buy two products for the price of one. Another policy is the free packaging certification initiative for manufactures. Their products undergo free laboratory testing to acquire certification. As a result, the certifications on their products increase the value and enable sales at high prices. However, the pricing of products sold at Amazon.com tend to be high hence attracts the upper class society and several middle class persons.