The Amazon model initially offered customers access to a vast selection without the need to incur the cost, time and stress of opening warehouses and stores and the needs of inventory management. Amazon realized that in order to ensure that customers have a pleasant experience and that Amazon acquires its inventory at reasonable prices, it needs to be in control of the transaction process from start to finish by operating the business from its own warehouses. Amazon's customer philosophy can be traced from a letter taken from their 1997 annual report in which they stated their focal points by offering customers products they thought were worth buying. Amazon tries to distinguish its operations by suggesting unique ways to transact, and it starts by offering books online that they can access whenever they want. Other value-added offerings include 1-ClickSM shopping, customer gift cards, and tons of reviews, navigation options, suggested content, and features. Amazon's strategy focuses on reducing the price. Thus, increase customer value. Amazon has become the market leader in online book sales by encouraging customers to repeat purchases through an advertising strategy that has proven effective: word of mouth. In its 2002 annual report, Amazon made numerous attempts to stay ahead of its competitors in the industry. Among these efforts are store customization that meets each customer's needs, displays customer reviews of the products offered, and a broad selection for the customer by placing used products next to new products. Amazon has also tried to lead the industry by introducing customer-pleasing features in terms of the technology category, order fulfillment and retail strategies...... middle of paper ...... in the forecasting exercise of product, this will help customers get a better deal from suppliers (Mellahi, K., Johnson, M., 2000).xi) Using Amazon.com CRM software technology can facilitate Amazon by offering added value to the available services and to product offerings, creation of new products and services, broad network of communication channels, closer interaction with customers, and distinctive characteristics of market products and customer support offerings (Devjee, 2009). Amazon.com CRM software definitely plays a significant role for Amazon in expanding its market share and maintaining its competitive advantage. References (information systems, organizations and strategy) (Mellahi, K.,Johnson, M., 2000)(Devjee, 2009)(Javalgi, RG, Radulovich, LP, Pendleton, G., Scherer, RF,, 2005)(Laudon KC and Laudon JP, 2009)