#amazonfail and the reasons why we have to care about conversations

by Laurent François

After Amazon problems on its cataloging system, a lot of gay & lesbian products were like “boycotted” by Amazon. It demonstrates that Twitter and microblogging are an opportunity but also a risk, moreover when a specific affinity group decides to attack together the core competences of a brand.

Amazon business model is based on the long-tail theory, that is selling “a large number of unique items, each in relatively small quantities.”

So basically, the model was clearly out of order during this time. And their reputation is at stake :

“This could just be the good old corporate brush-off, or it could be evidence that Amazon considered homosexually themed books worthy of being censored.

Needless to say, the rapidity with which Amazon about-faced on this is encouraging–clearly they’ll do what their consumers say. But it does raise questions about giving so much power to just one bookstore, especially when Striphas’s analysis indicates that future contenders are going to have a tough time knocking Amazon off its perch”

A good quote read on NY Times:

“Frankly, it’s surprising to hear that Amazon, which was a pioneer in the digital space, would miss this opportunity to react in real time and to manage this crisis better than they did,” said Gene Grabowski, chairman of the crisis and litigation practice at Levick Strategic Communications in Washington.

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