Amazon's use of the Internet to sell books is an example of what tactical use of information services?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

Amazon's use of the Internet to sell books illustrates a tactical use of information services that aligns with low-cost leadership. This strategy involves offering products at lower prices than competitors while maintaining acceptable quality. By utilizing the Internet for direct sales, Amazon significantly reduces costs associated with traditional retail, such as physical store expenses, and makes it possible to pass savings on to consumers. This approach enables Amazon to manage pricing competitively, attracting a larger volume of customers.

The implementation of e-commerce allowed Amazon to streamline operations and optimize inventory management, leading to lower overall costs. By establishing an online marketplace, they could reach a broader audience without the geographical limitations faced by brick-and-mortar stores. This focus on cost efficiency and accessibility positions Amazon as a leader in book sales, exemplifying the fundamental principles of low-cost leadership in the context of the digital marketplace.

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