...Economics is the social science that studies the choices that individuals, businesses, government , and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Summary of the Article The purpose of this report is to evaluate E-commerce structure and strategy of Barnes & Noble and Amazon. As e-commerce market is highly competitive, it is important for the company to develop an effective strategy in order to gain customer’s loyalty, remain profitable and maintain the company’s image This is investigates success of three online book websites and how or if they have expanded their markets. Amazon.com is the largest online book retailer and now is the largest online retailer. Barnes & Nobles is now expanding to other markets to stay competitive. Borders.com is just standing there ground with books, magazines, etc. This articles compares and contrasts the business of all three. It investigates information from the 2009 annual report of Amazon.com and answers questions related to it. It expounds on the brand and identity of Amazon.com and its furthered channel of distribution. It also gives opinion on Amazon.com’s future market in retailing. Relationship of the Article It is related with Macroeconomics Market because Macroeconomics is concerned with the aggregate performance of the entire economic system and demand and supply on a national or global basis . 1) Resources Allocation Methods ...
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...discuss how Amazon has been able to stay so successful with new and upcoming competitors. In addition to discussing the success, the struggles will be evaluated as well as ways to improve the company. When visiting Amazon, you can get several of your products at one time; it is a one stop shop type of deal online. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Over the past year Amazon has seen growth along with struggles. Financially they have seen an increase in their business. Amazon has expanded their business pretty rapidly over the past fifteen years and they are still trying to expand further. In November of 2010 Amazon signed agreements to acquire Quisdi, Inc. and LOVEFiLM International Limited (amazon.com). They expect that these acquisitions will close in 2011, because of regulatory approvals and closing conditions (amazon.com). When acquiring other companies Amazon should be more careful, because the immediate effect of receiving the cash is good for the company but the long term effect of losing the acquisitions is more dangerous for the company. Another sector that Amazon wants to continue to grow is the international market. When doing business internationally it is important to know each countries exchange rate as this can have a positive or negative impact on the company. One new partnership has been successful for Amazon is the purchase...
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...with internal information and customer service. The purpose of this case study is to analyze the survival of Barnes and Noble in the inevitable era of e books. Research of this analysis will be drawn form primary sources such as academic journals, articles and books. Introduction Barnes and Noble, is one of the leading retail distributers of books in the U.S, with over, 1300 bookstore all across the United States. The company is comprised of three segments, which include, retail segment, which includes its 661 brick and mortar stores as well as the official company website (bn.com), e book segment which focuses on selling “The Nook,” Barnes and Nobles e book reader and the college bookstore segment. (IBISWorld, 2015). Since its inception, Barnes and Noble helped to put many independent booksellers out of business, and now finds itself fighting fierce battles in the wake of the e book era. The book industry went has gone through drastic changes, which have resulted from the advancement of technology, there has been a radical change from actual print to digital. Recent studies have shown that more and more individuals are inclined to purchase e books over print, for reasons such as convenience, accessibility, having a wider range of choice of books at choose from and the “on the go” feature that comes with purchasing an electronic book just to mention a few. Amazon, which to date remains the...
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...Amazon vs Barnes & Noble The Battle of the Bookstores and the Future of Electronic Commerce Amazon -Amazon.com opened to the public on the World Wide Web in July 1995 -Offers a variety of items from books, electronics, computers, music, movies, apparel, toys, computers, etc… -Amazon. has six global websites: Amazon.com, Amacon.co.uk, amazon.de, amazon.fr, amazon.co.jp and amazon.ca -Amazon was incorporated in 1994 in the state of Washington and reincorporated in 1996 in the state of Delaware -Has been available to the public on the stock market since May of 1997 -Amazon.com works with companies such as Nordstrom’s, Gap, Eddie Bauer, Urban Outfitters, Osh Kosh, Footlocker Barnes & Noble 1873: From his home is Wheaton, Illinois Charles M. Barnes starts a small book business 1917: William Barnes, Charles’s son travels to New York to negotiate with G. Clifford Noble and from a partnership, then opening the first Barnes and Noble 1987: Barnes and Noble acquires B. Dalton 1991: Barnes and Noble pioneers the super store concept that has huge location, wide selections of titles, experienced bookstore staff, warm atmosphere and cafes in stores 1993: Barnes and Noble goes public on the stock exchange on September28, 1993 In May 1997 Barnes and Noble opens it public site on the world wide web barnesandnoble.com 1999: barnesandnoble.com goes public on the stock exchange and raised $468 million and unprecedented amount for an internet company Business Models ...
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...Online: Amazon vs Barnes and Noble Kristofer Rato Panther ID 1947207 FIN 6644 Global Financial Markets Dr. Krishnan Dandapani Abstract In the paper, we will focus heavily on measuring prices and price competition online between the two leading bookstores, Amazon and Barnes and Noble. You will see a comparison of publicly available data on the ranking of sales of approximately 20,000 books. By matching this information to prices, we can directly measure the demand facing both companies as well as create a price comparison for online books. As you will see throughout the paper, the results will show that the demand at Barnes and Noble to change in its price is much more than is the demand at Amazon. Background and Data Amazon began selling books online in 1995 and are considered one of the first electronic commerce firms. Only 4 years thereafter, books were the second largest retail segment sold over the internet (BCG, 2000). According to Forrester, online book sales grew from essentially nothing in 1995 to more than $2 billion in 2000 (Forrester, 2001). In the US today, online book sales make up between 7.5% and 10% of total book sales (American Booksellers Association, 2002). The two most dominant competitors in today’s online book sales are Amazon and Barnes and Noble. These firms account for more than 85% of online book sales. We are not going to mention that Amazon’s book, music, and DVD sales are approximately four times the amount of Barnes and Noble...
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...The Business Enterprise – BUS508 1. Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books. No, I don’t believe Amazon has lost its identity because I can see some of Peter Drucker’s Entrepreneurial Strategies as I surf their website. I’ve been a customer of Amazon for several years and initially searched their site for reading materials. As society and its needs grew, Amazon also grew by offering different types of products and services for people on the move. One of Drucker’s strategies that I see that Amazon emulates is Hit Them Where They Ain’t – Entrepreneurial Judo. Barnes and Noble along with Borders offer mostly books with few offerings of other items. They each are known mostly for their book offerings and in no way have they begun to tap into other departments; although each offers other purchase opportunities. Amazon has managed to enter into several different arenas successfully by offering everything (in my opinion) that a family may have need of. Amazon listened to their customers and made some changes on what their customers wanted. They also understood that people have varying lifestyles and as Americans we want what we want when we want it. Excluding students and young Americans, older adults are still expanding their internet experiences and being able to shop at one location online versus many others, are what Amazon offers. Barnes and Noble and Borders are operating on what is expected: people will always...
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...Customers Barnes & Noble is a fortune 500 company that offers a variety of products including books, magazines, and movies. The retail book industry appeals to a variety of customers, with the most frequent customer base being those above 55 years old. The company has two divisions: retail and college bookstores. Their retail division consists of over 600 stores across 50 states and barnbesandnoble.com and the college bookstore division consists of over 600 college stores (Greenfield, 2014). Even though the company’s primary business is trading books, there is also a large online customer base that appeals to the younger generation. Competitors Retailers such as Amazon and Borders are Barnes & Noble’s main competitors. Amazon is the company’s biggest competition as it competes is every business segment as Barnes & Noble and offer similar products. Other large retail bookstores compete by offering books both in store and online. Barnes & Noble does compete with small independent bookstores, but because they offer limited selections, these retailers are not considered strong competitors. With the recent shift of publishing company’s business model and advancements in technology, Barnes & Noble also compete with companies offering digital e-reader services including Amazon, Apple, and other tablets based on Google’s Android platform. The introduction of Amazon’s Kindle HD devices in 2007 severely affected Barnes & Noble sells as customers switched from hard/printed books...
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...largest customer base over 30 million people. Besides selling books, Amazon diversifies itself by selling movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products. Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique products across 12 categories to be sold by Amazon and third parties. Amazon also manufactures and sells the Kindle E-book, which so far is the biggest...
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...The Success of Amazon Fully discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and recommendations about what Amazon could have done differently Amazon.com was founded in 1994 as online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon completes in a vast array of markets including: books, movies, digital readers, computers, electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand. Amazon has grown and evolved with the growth of the internet. They market their website to an audience that is typically tech. savvy and educated which typically means that their clientele have the money to spend on their products. One of the biggest pros to Amazon’s diversifications strategy is that they have created a one stop shop that offers almost anything that a person is looking for and have been widely successful. Amazon has made it supper easy for anyone to get started with making money online. The products are easy to find, and the ads are easy to incorporate into any blog or website. And the best part is that they even provide you with step-by step instructions on how to do it. Amazon allows you to open up to 100 Amazon stores which you can link to from your...
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...Amazon Inc. SeifAllah Marzouk – Ahmed Fadel – Mohamed Hajaij Introduction Amazon is the global leader in ecommerce. It directly sells a huge range of diverse products. Ranging from books to music to other physical goods and, their specialized asset, Kindle e-book. The company attains their high value-added differentiation by customer-focused information services such as holding online customers’ preferences and providing customization. One of the main competitive advantages of the company is unique bundling of several recourses such as service and distribution. Amazon was initially an online bookseller that directly shipped orders to customers; however, the company grew substantially and soon established a distribution network through which it could ship millions of items to customers all over the world at the lowest costs possible. Operating 10 websites in more than 45 countries now gives Amazon a strategic advantage in its diversity. Amazon was founded in 1994 in the state of Washington DC, USA. It strategically competes internationally by attaining the lowest prices amongst its competitors. With regards to book selling, Amazon’s biggest competitor is Barnes and Noble. While Barnes and Noble enjoys the spoils of selling in the physical world and online, Amazon is stuck in the cyber world (which evidently keeps costs down but doesn’t help with the sales)...
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...Posluns July 27, 2011 Founded in 1994 by Jeff Bezos, Amazon has grown to be the front runner in online sales. Amazon started out just selling books, but their business inflated to selling “mp3 downloads, video games, DVD’s, computer software, furniture, food, toys, and etc.” (Amazon 2004) They inflated from being a small company to going international. People from all walks of life and different countries use Amazon to obtain goods. The business specializes in providing individuals with a platform to sell their product in a competitive market. Whether it may be a new author trying to sell his new book, or even a new artist trying to push their new album, they provides the tools needed to make money without going through major distributors, and recording labels to do so. Amazon growth and diversification comes from the strategic marketing strategy of keeping the main brand on the forefront of the retail industry. However being this successful always brings forth more calamities. Sure enough Amazon is very successful in how their company is formatted, but through several different periods of litigation Amazon had to change some things. Mostly in slogans, due in part of law suits from companies such as Barnes and Noble, Wal-Mart, and others. Amazon also didn’t think about the taxing phase of the point-of-sale. Many states are trying to implement laws that tack on taxes from Amazon purchases. Amazon always responds by terminating contracts of the vendors...
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...largest customer base over 30 million people. Besides selling books, Amazon diversifies itself by selling movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products. Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique products across 12 categories to be sold by Amazon and third parties. Amazon also manufactures and sells the Kindle E-book, which so far is the...
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...“Assignment #2: Amazon.com’s E-Business Model” Your name here BUS 508 Contemporary Business Professor name here Date here Amazon’s E-Business Model Amazon has broken ground on a new way of doing business. They have become the leader in their industry online and continue to lead the way in innovation and technology. To understand a bit more about the workings of this company and to discuss some key facts about why Amazon is where they are today, this paper will emphasize four key topics: Growth and Diversification; To Split or Not to Split; Can Barnes & Noble or Borders Keep Up; and Online Only. After review of the topics, one will be able to clearly see why Amazon is a company to model. Growth and Diversification (Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.) When asked to discuss the pros and cons of Amazon’s growth and diversification of business and specialization, one finds it difficult to criticize Amazon for anything they have done so far. Amazon is leading the way in terms of growth and diversification. Amazon has a solid business plan and mission statement in place which they strive to adhere to at all times and at all costs. Jeffrey Bezos, founder and CEO of Amazon, is straight-forward in his approach to the shareholders as well as his customers, employees and business partners. Mr. Bezos initially began his company in 1994 with...
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...Amazon vs. Barnes and Nobles vs. Borders Allison Foster Instructor Steven Brown BUS 508 – Business Enterprise April 30, 2011 Week Four Originally named “Cadavera”, Amazon was founded by Jeff Bezos in 1994. The purpose of this company was to provide the largest online bookstore ranging from compact discs, books to electronics and apparel. Amazon made it’s own individual mark in 1994 when the owner created a business plan that had no predicted profit for the first four years. According to (wikipedia.com), by the year 2001 Amazon turned a five million dollar profit. The Pros and Cons of the Amazon Business Today Amazon has grown more than just the worlds largest bookstore. Amazon created many different entities such as; Amazon Marketplace, Amazon Fresh Market, Amazon MP3, Amazon Payments, Amazon Prime, Amazon Kindle, and Amapedi. Amazon.com is also eco friendly by promoting the Go Green campaign. This company partners with American Red Cross and raise funds for national and environmental disasters such as Hurricane Katrina, Hati Earthquakes, and 9/11. Although Amazon.com has grown to be successful, the company still endures advantages and disadvantages of diversification of business and specialization. Advantages of Amazon.com are the business to consumer relationships, vast amount of diverse product selections, low cost of merchandise, convenience, personalization, and free delivery . Over the years, Amazon has dominated the e-business and internet...
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...E- Business With the advent of internet and web development technologies, e-business is playing emergesDocument6 with a larger role in today’ entrepreneurial world. “The internet offers businesses and other organizations a source of information, a means of communication, and a channel for buying and selling, all rolled into one, with just a few clicks of a mouse” (Boone, Kurtz, 2011,p.214). It has also revolutionized almost every aspect of business. People all around the world use the internet for their daily life, for instance, surfing information, paying bills, making purchases, communicating with organizations or individuals, and connecting with people around the world. The internet, extranet, and the other forms of digital technology has created a valuable chain among clients, employees, stakeholders, suppliers, traders into the world of electronic business. This new form of communication can be used either for business to business or business to customer as well. Electronic Business on E-Business is a term used to describe a wide range of business activities operating via the internet internet, or utilize internet technologies to improve the productivity or efficiency. E-business also provides superior customer service, increase sales, and reduce costs. A business enterprise may use the internet to exchange information with the customers, advertise their products, research market trends buy and sell goods and services. E-business uses tools such as e-mail services,...
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