FIRST-MOVER ADVANTAGES

There was a huge advantage of Amazon being the first mover in E-commerce. In fact, Amazon.com was the first book retailing online, seizing a head start on later entrants. Amazon.com has become a character with e-commerce and it is considerably to be one of the several Internet brands recognized world over. According to the book, Strategic MIT, “The organization’s position as technology leader also enables it to shape customer expectations about the technology’s form, features, pricing, and other characteristics. By the time later entrants come to market, customer requirements may be well established” (p.93). Amazon is clearly a monopoly rent. It has the ability to regulate the price by lowering costs through a solid bargaining power over suppliers. Amazon contains the huge bulk of products that Amazon can easily sell it at discount price or make it cheaper price. That has given Amazon the ability to control the price against these competitors.

Technology leadership, first, Amazon can lead other companies in their methods and use of technology in ways that are difficult for later entrants to imitate. Amazon’s website is the user friendliness, which is unparallel, the reviews, prices, discounts and similar products are all integrated into a powerful helpful interface that enhances the final ordering procedure easy. This is differentiating as a successful business from a failure. However, Amazon has dedicated teams developing a user experience that won’t be uncluttered without unnecessary layers of technology, which means it harms than good to potential customers. This development is designed to allow customers to take a sneak peek inside the covers of a book before placing orders. Countless customers liked this idea because they can have a wide range of options to test and finalize the product that works best for them. Customers can easily understand how to order, how to find, how to get discounts, how to pay, how to create an account, and many more. Today, most customers are used to Amazon’s user interface and usage. As a result, Amazon’s frugality and innovation coupled with freshness have given customers happy and willing to return to Amazon more often. That is what makes Amazon the market leader.

Exploiting buyer-switching costs, Amazon captures the customers by becoming a first-mover. According to the book, Strategic MIT, “Additionally, if a product is complex, buyers must spend time becoming familiar with its operation; this time investment becomes a switching cost that deters the buyer from switching to a different product.” For instance, Amazon can easily adapt to a new feature or pricing. Amazon has already shaped consumer preferences. For instance, Amazon is a strong brand loyally because it offers s a friendly user interface; one-click experience, security, and features that give them better accessible. Customers are mostly satisfied with what Amazon has. Now satisfied consumers tend to not invest time seeking information about other websites and usually avoid the risk of being dissatisfied if consumers switch. Amazon’s brand preference appears to be more important for customers services used by consumers. As a result, Amazon dominates their marketing for a long time.