This paper will discuss how the largest retailer of books, Amazon. com has expanded into many other markets besides books and maintained profitability. It will examine how Amazon was able to maintain its brand identity and also look at whether Amazon should consider retail locations.

Furthermore this paper will compare and contrast the websites of Borders. com, Barnes and Noble. com, and Amazon. com according to the functionality and design and other criteria. Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books.Amazon has not lost its identity by expanding into markets beyond books however has matured in its appearance. In the past Amazon was initially just an online retailer of books but now Amazon is a retailer of clothing, jewelry, electronics, shoes, and hardware just to name a few. By Amazon expanding into these other markets it has increased its market share and profit over the last five years.

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During this recession time many businesses are closing or losing sales however Amazon had a profit increase of 9 percent on sales that rose 18 percent. Boone 2011) Amazon has stayed consistent with its strategy of the customer being the focus. Also Amazon has continued to adhere since its inception that “they must fill three enduring needs: vast selection, low prices, and fast, accurate delivery”. (Boone 2011) Being able to continue with those philosophies, expand into many markets and increase profits shows that Amazon has definitely not lost its identity however just grown into a better online retailer beyond books. It shows signs of maturity like a cliche says that when you can change yet remain the same.Recommend what Amazon should do to protect its brand. Amazon can protect its brand by continuing to attract and keep customers by meeting the buyers’ expectations. (Boone 2011) So Amazon will need to continue to offer low prices and having great merchandise delivery and return turnarounds.

Also Amazon will have to make sure that their website is continually functional for most viewers. It helps that consumers see reviews of products before purchasing most of them which aids in their decision to order from them versus another retailer.Amazon will always need to be researching and surveying consumers in order to stay ahead of the game.

This will aid to make sure what is needed and when it is needed in the future for consumers. Amazon can also protect its brand by being open to change or creating new innovations and fresh ideas to its consumers. Amazon created an edge to its brand when it created the Kindle. The Kindle, the electronic-book reader, has become a million dollar best seller. (Boone 2011) Also making sure that the website’s content and design is effective will aid in protecting the brand of Amazon.

Because Amazon’s brand is through the medium of a website then the importance of the effectiveness of this website and the content of it makes a difference in the mindset of many consumers. One can’t afford to loose too many consumers because they weren’t able to navigate or find a product on the website. Also if Amazon continues to have good partnerships like the one that they have with Target or Sears then that also will help protect the brand of Amazon. The more exposure that consumers have with Amazon then it will definitely be a common website of choice.Recommend what Barnes & Noble and Borders should do to recapture some of their online market share. Barnes and Noble would have to implement some changes in order to recapture some of their online market share. They probably would first need to study and research every tactic that Amazon has utilized to capture the market share that they have at this time. Then compare and contrast those strategies with their own strategies to see what they could easily implement now without much change to their brand.

They would have to do more analysis of their suppliers and the costs they are paying for their books to see how Amazon is always able to restock their inventory so easily. Furthermore it would help to make sure that their website’s design is functional and effective for their viewers. They would need to do some marketing research and survey many consumers to see maybe what they are looking for and approximately at what cost. This will probably show how low prices, availability, and expedient delivery are very important factors to consumers.Maybe Barnes and Noble will need to look at creating a new innovation to aid in recapturing its online market share. At one time Dell sold computers exclusively online, now the same computers are available in retail stores (Wal-Mart for example). Discuss whether or not you foresee Amazon expanding its channel of distribution to include retail locations.

I really don’t foresee Amazon expanding its channel of distribution to include retail locations. If it does expand to that channel then it might only be a small portion of products. I think that Amazon will stay true to its brand of being an online retailer.Because Amazon is always researching to stay ahead of the game and if the research showed that it would be profitable for them to expand to retail locations then I think that they would definitely give it a try. But online shopping is becoming more of the norm versus going into a store to shop. Because of the convenience, personalization, and lower prices more consumers are doing online shopping than ever before.

(Boone 2011) So Amazon would probably continue to stay with their current strategy to avoid any risk of loosing any of their market shares. Furthermore, Amazon’s website in comparison to Borders. com and Barnes & Noble. om shows that they are doing the right thing and should continue with it. (Table 3) In conclusion, Amazon is the largest online retailer of books and other products also. Amazon has stayed consistent to its original values of focusing on the customer and keeping the prices low and creating new innovations.

Because of this Amazon has not lost its identity and probably won’t expand its channel of distribution into retail locations. Amazon has learned that it profits them to expand beyond just selling books. Therefore Borders and Barnes & Noble must look at some changes in order to recapture some of their online market share.