1. How does Amazon.

coms CRM software help it to gain market share and maintain its

competitive advantage.

Customer relationship management, is the key enabler to help organizations increase

customer loyalty, target their customers and streamline customer communication process.
In the case of Amazon CRM was the main reason to gain market share and maintain

competitive advantage by segmenting markets based on the demographic and behavioral

characteristic. For example, in the case study it mentioned if a customer browses or

purchases a particular genre of book then other books with same genre will be suggested

on the viewers web browser. These suggestions are based on what other readers of the

text had purchased, in addition to the target text. Tracking sales trends and advertising

effectiveness by customer and market segment, for example when a book is being viewed

the web page will also permit the viewer to go a linking web page of a partners book

company, where the same title used or new book is being sold for a lower price. Besides

amazon able to maintain their competition advantage based on 3 operational strategies the

low cost leadership, customer differentiation and focus strategies. The low cost strategies

that being used by amazon make them to differentiating itself primarily on the basis of

price is the fundamental of their success. Other than that with their customer

differentiation strategy, amazon provides current and prospective customer with different

through design, quality and dogged focus that makes them to achieve the competitive

advantage. The focus strategy helps Amazon to find their niche market and focus on

outstanding customer service because they know about their market and customer.