Competitive Advantage and Amazon

Ebooks by Amazon Amazon is the leading e-book (electronic books) seller across the globe given its market dominance over the years. Publishers have increasingly preferred electronic books because of their tendency to be more profitable for them. The increased preference of e-books by publishers is attributable to the fact that they are less to create and distribute. In addition, electronic books are preferred by publishers because they are not subject to returns from bookstores.

Amazon has continued to influence the e-books market because of its dominance that has generated significant profits over the years. However, there is need for the company to increase revenues generated by e-books because of various factors. First, publishers are looking for measures to halt Amazon's influence on this market. Secondly, the company should look for ways to enhance its profit because of the decrease in e-book sales by 11% in the last financial year (Pressman, 2016).

Through identifying innovative revenue generating ideas, Amazon will effectively deal with these challenges and maintain its profitability in e-book sales by increasing revenue. One of the ways Amazon can increase revenue of electronic books is through using new emerging technology as a niche to gain competitive advantage over its rivals. In this case, the company should continue leveraging on its strength of combining new emerging technology with existing database technology to create a new business model (Kroenke, Bunker &Wilson, 2013).

Throughout its history, Amazon has always relied on innovative application of emerging technology. Therefore, to increase its revenue from electronic books, Amazon should continue identifying and capitalizing on new information systems. For instance, the company should consider customizing its e-book products for multifunctional devices. Multifunctional devices provide an opportunity for publishers and retailers like Amazon because customers are slowly favoring multifunctional devices over devices that are only used to display books.

As part of utilizing new technology, Amazon needs to capitalize on the opportunity to customize its products for multifunctional device given that most of the available devices are exclusively for displaying books. This will help the company to increase its revenues by taking advantage over an available opportunity, which will in turn enhance its competitive advantage. The second way for Amazon to increase its revenues from sale of electronic books is to lessen prices.

According to Dale (2015), there is evidence that higher prices may not be the most appropriate means to generate more revenue/profits in the digital literature market. Even though publishers and competitors in the digital literature market cite various reasons for higher prices, existing evidence shows otherwise. Generally, the higher the prices of an electronic book, the lower the sales and revenue and vice versa. In this regard, lowering prices will help Amazon increase revenues from e-books and maintain its competitive advantage and dominance in this market.

However, the reduction of prices should be coupled by use of new emerging technology for sale of these products. As Amazon expands its distribution network to multifunctional devices, it should lower its prices to make the products more attractive to customers. This initiative will contribute to an increase in the company's customer base and increased revenues because customers will find the.