AMAZON.COM

A decade ago, after learning that Web usage was growing at 2,300 percent per year, Jeff Bezos analyzed a list of the 20 best products to sell online. Books topped the list, in large part due to the vast number of titles available. After deciding to sell books, Bezos moved to Seattle, due to the large number of computer professionals located there. He created an online strategy based on the concept of creating a place where people could not only find and buy any book they wanted but also get great customer service. To Bezos, the three most important components of this strategy were and still are service, selection, and price.

Sales for Amazon.com took off immediately, as the firm concentrated on books and sought to have the largest selection of books that could be found anywhere.

Almost from the start, industry analysts believed that Amazon.com's Web site had several distinctive advantages: an emphasis on information over graphics; a separate page for each book, including a brief description; customer reviews; and, sometimes, author interviews.

Although amazon.com started off selling books, it has since branched out into many other product lines, such as electronics, small appliances, a bridal registry, and toys from Toy "R" Us. It also partners with Target Stores. In essence, it is now an online department store.

Because of its heavy investment in technology, infrastructure, and expansion, Amazon.com did not earn an operating profit until the first quarter of 2002 - after losing $ 545 million in 2001. Through productivity enhancements, Amazon.com reduced operating expenses by 30 percent, while still maintaining double-digit revenue growth.

web usage: penggunaan web

the vast number: jumlah yang besar sekali

immediately: segera

advantage: keunggulan, manfaat

emphasis: penekanan

branch: bercabang, berkembang

expense: biaya, pengeluaran