Amazon.com, once the undisputed leader in online book sales, seems to have lost its way. The company's decision to diversify its product range has opened the door for competitors like Barnes & Noble to potentially overtake them. Amazon's success was built on its strong brand identity and top-of-mind awareness among consumers. However, its recent foray into selling everything from electronics to kitchenware has raised questions about its business expertise and overall strategy.
Amazon's brand was synonymous with online book sales. The company had invested heavily in branding, and it paid off. When people thought about buying books online, they thought of Amazon. The company's name was so ingrained in consumers' minds that even those who didn't have the site bookmarked could easily find it by typing "Amazon.com" into their browser.
However, Amazon's decision to expand its product range has raised eyebrows. The company now sells a wide variety of products, including electronics, toys, DVDs, music, health and beauty products, wireless phones, cameras, video games, software, kitchenware, tools, hardware, lawn and patio items, cars, and even offers auctions, gifts, and outlets. This move has led many to question whether Amazon's expertise in selling books can translate to selling other products. In fact, it has even led some to doubt the company's overall business acumen.
The issue at hand is that Amazon's diversification strategy goes against the principle of niche marketing. The company's expertise in selling books doesn't necessarily mean it can sell hardware or cars effectively. This strategy has not only diluted the company's brand but also raised doubts about its business expertise.
Amazon's attempt to create an online mall has also been met with skepticism. While physical shopping malls are successful because they offer a variety of shops under one roof, the same concept doesn't necessarily work online. The internet itself is a vast shopping mall, and creating a sub-mall on a single site doesn't offer any additional benefits. With a simple URL, consumers can visit another shop in seconds, without the hassle of physically moving from one store to another.
The question now is whether Amazon can recover from this strategic misstep. While the company has shown good profits from selling books, its new sidelines are proving to be a drain on resources. It may take new ownership to refocus the company on its core business of selling books. However, with competitors like Barnes & Noble not sitting idle, it may already be too late.
The lesson here for other businesses is clear: focus is key. If your site lacks focus, start cutting non-essential elements. Amazon's only hope of survival may be to drop all products except books. Similarly, businesses should look for "deadwood" on their sites - elements that only appeal to off-target visitors - and cut them for the benefit of the entire site.
Overcrowded sites are a common problem. Many sites are overstuffed with all sorts of things that don't contribute to the site's main purpose. It's important to have a clear statement of what the site is about, right at the top. It can be difficult to objectively evaluate your own site, so consider asking others for their opinions. Ask them to identify three things that should go, be improved, or added. Also, take advantage of free site evaluations whenever possible.
Trying to be everything to everyone is a recipe for failure, as Amazon is learning. It's better to be the best in a specific niche than to be mediocre in many. If your site needs a serious overhaul, start by cutting the deadwood. A little bit of pruning can lead to significant improvement.
Never, Ever Release Any Of Your Rights To Anyone
One of the grandest scams on the Web, which goes largelyunnoticed, is for a web-based bookseller or publisher to requiresome rights to your work in exchange for the service to beprovided. Many demand the electronic rights, for example.
The Hits That Matter Most
So you know what hits mean. Unique hits or user sessions,I mean. And you know what CR means. Right? If so, you're ingreat shape, for many people don't. They think they do. But they've got it wrong.
Customer Personality Types: Does It Matter?
Marketing types are fond of classifying people intocategories. Here are four which I took from "Differentiate OrDie," by Jack Trout with Steve Rivkin. (John Wiley & Sons, NewYork, 2000, p15.) Only the first few words of each are includedhere.
