...because of the need of the consumer and how much of one item or items are purchased. Industry insiders try to balance the supply and demand based on the spending habits of the consumer. When Amazon announced the Kindle E-reader, the demand was high and Amazon tried their best to create the supply for the amount of demand for their e-reader. The introductory price did not seem to bother certain consumers who could afford the newest electronic toy to have. Once time passed and purchasing of the new reader declined, Amazon lowered the price and sales increased a little more. As the years passed, Amazon updated their Kindle to the next generation and videos were available for review on the Amazon website to attract anyone who could consider purchasing. Every year Amazon will continue updating and try to keep the interest going in their product, but how long will the demand go on and compare to the newest and better readers on the market? The Law of Demand states that if “the need for a certain amount of one item rises the price will fall but if the need for the item decreases the price will increase” (McConnell, 2009). Main factors that can change the determination of the law of demand, is if a customer has a change of heart about purchasing an item the demand will fall. Consumer income also will affect the law of demand – if a consumer’s income has decreased a cheaper product will be purchased. Other related items would be the expectation of buyers, price of related...
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...Amazon and Borders book history and the core business of each company will be discussed with a look at the comparison of the companies view point on management approach to Internet marketing and sales. You will read reasons for Amazon’s success and Borders demise. The emphasis will be on each company’s adaptability to the markets changing conditions and recommendations a company should build in flexibility to back decisions to adapt to these market changes. Let us start with a timeline of Borders Books which was founded in 1971 by Tom and Louis Borders. Two brothers opened an 800-square-foot used bookstore and called it Borders Book Shop located at 211 S. South State St. in Ann Arbor Michigan. Borders had eight CEO’s over its 40 years. Starting in 1988 when Borders recruits Robert DiRomualdo to lead the company's expansion. DiRomualdo is later credited with leading the company's rise to national prominence in the 1990s. The highest point of Borders was in the 1990’s under DiRomualdo’s leadership as CEO, the company started integrating music and movies into some of its stores. In 1992 Borders chooses not to go public but rather to allow Kmart Corporation acquire them and in 1995 the book store chain, renamed Borders Group Inc., spins off from Kmart and goes public on the New York Stock Exchange. At the time, Borders' innovative inventory management system was considered "the envy of the industry". The 1990’s Borders adds 52 superstores in the biggest one-year expansion in its...
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...Competitors Amazon is the largest E-commerce company today , being the largest online selling comapy gives them the credibility and the confidence needed to call themself the best E-commerce company . So who really can compete with a company that has proven a rise in sale each year? Well the answer to many people could be that no one can actually compete with amazon , but in fact the online shopping is so large that more than one company can share the spot light. One of the main competitors is eBay, its an online shopping website that was first set as an auction website but then expaneded and has now become a way for small business to build their own store/website threw their eBay account. eBay also has a better advantage because they are more international than Amazon, since most of the small business are based outside of the U.S. However, many customers prefer Amazon because they do not charge fees for posting your products. eBay will often charge their customer for the posting and any pictures that are attached to the post. Amazon is also highly known for their collections of college textbooks which explains their number of customers that fall into the College Student category. They also offer their customers a "buy back gaurantee" at the time of purchase so students do not have to worrry about selling them. Some of Amazon's competitors include Chegg, Valore Books, and Coursemart. The reason why these three are top competitors is becuase they offer E-books which is...
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...Mini Research Paper: Internet Bubble Fundamentals of E-Commerce Professor: Russell Calhoun Precious Harper Table of Contents Introduction…………………………………………………………. 3 Brief Description of WWW and Internet …………………………… 4 Successful Dot.com companies……………………………………… 5 Unsuccessful Dot.com companies…………………………………… 6 Conclusion……………………………………………………………. 6 Work Cited…………………………………………………………… 7 British engineer Tim Berners-Lee developed the world-wide-web in 1989; the World Wide Web became available publically on August 6, 1991. The world-wide-web is a system of resources that allows people to view and interact with a variety of information. A computer that is connected to the Internet can access the world-wide-web. Many people believe the Internet and the World-Wide-Web are one in the same when in-fact they are not. The Internet is a massive network of networks; it connects personal computers, mainframes, cell phones, GPS units, music players etc. The Internet started in the 1960’s and it’s a massive hardware combination of millions of personal, business and government computers all connected like roads and highways. The world-wide-web (WWW) is a system of Internet servers that support specially formatted documents. The documents are formatted in a markup language called Hypertext Markup Language (HTML) which supports and links documents, graphics, video and audio files. Web...
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...Market Equilibrating Process Mariam Ibrahim ECO/561 June 06, 2011 Tom Hodgkiss The Amazon kindle was a enormous hit; it is surprising how technology grows fast enough that it comes up with an updated version in the same year. I was interested in how it sold out in five and a half hours the minute Amazon released it for the first time, and I always kept comparing it to the NOOK. This example is perfect to explain the market equilibrium process and how the supply and demand apply. The law of demand is simple, “there is a negative or inverse relationship between price and quantity demanded.”(Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn, 2009, p.47 ), which basically means the when the price rises, the quantity demanded falls or vice versa. The determinants of demand can shift the demand curve and change the demand schedule such as change in buyer’s taste, numbers of buyers, consumer’s income, price-related goods, and consumer expectations. The law of supply is a positive relationship between price and quantity supplied (Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn, 2009), which is basically means that if the price rises the quantity supplied will rise too. The determinants of supply are a few that can affect the supply curve, such as the resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number of sellers. This leads me to the market equilibrium, which means that the...
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...1 How Amazon and Same-Day Delivery Will Effect Retail Commercial Real Estate by: Ryan Mitts FIN 5433 Dr. Tony Ciochetti 03/30/2013 2 TABLE OF CONTENTS EXECUTIVE SUMMARY....................................................................................Pg. 1 INTRODUCTION.................................................................................................Pg. 2 THE STATE OF RETAIL REAL ESTATE.........................................................Pg. 3 THE THREATE OF E-COMMERCE TO RETAIL REAL ESTATE..............Pg. 4 IMPLICATIONS OF SAME-DAY DELIVERY.................................................Pg. 7 THE FUTURE OF RETAIL REAL ESTATE.....................................................Pg. 9 CONCLUSTION...................................................................................................Pg. 11 REFERENCES......................................................................................................Pg. 12 1 EXECUTIVE SUMMARY Real estate throughout the world suffered a huge shock during the financial downturn of the late 2000's, and while the vast majority of other sectors are on the mend, the retail sector still seems to be having a bit of trouble getting back to where they were before the crash. A large reason for this has to do with Amazon and other online retailers taking up a larger and larger share of the available sales forcing many companies into rethinking their business plan, leading to store closures, downsizing, and even...
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...Assignment 1: Comparing Two Similar Businesses Amazon and Border Books are in the same industry and are very similar and comparable; however both companies have different history and core aspects of their business. Beginning with Amazon, Amazon was founded by Jeff Bezos in 1994. The company was funded by two investors; Nick Hanauer (invested $40,000 in 1994) and Tom Alburg (invested $100,000 in 1995). Originally, the company was run out of Bezos garage in Washington. Once Amazon was introduced online, the website was not as enticing and graphic it was rather dull and plain (this caused the business to start on uncertain ground). However, once Tom Alburg joined the company, he invested a lot of money is updating the Amazon website. Shortly after, Amazon had customers from all over the world. In addition, after that milestone was met, Bezos decided to expand his business into more than just an online bookstore to promote returning customers. In turn Bezos opted to allow customers to rate and review books on Amazon. In 1997, Amazon went public in which in the same year the company broaden its market by add CD’S, and movies to be purchased and reviewed. Moreover, in 1998 the company added software, electronics, and video games to the roster. At the end of 1999, the company was extremely profitable; however in 2001 the company experienced a fiscal loss of 1.4 billion and lay off 1000 workers. Amazon utilized the analyzers strategy (a blend of the defending and prospective strategies...
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...FORDLANDIA Greg Grandin’s “Fordlandia: The Rise and Fall of Henry Ford’s Forgotten Jungle City” unveils the story about Ford’s unsuccessful attempt to improve his automobile industry. Several parts needed for the Model T cars-including tires, gaskets, wires and many others-led to a crucial need for rubber supply. Being the richest man in America, Ford had a vision; it was building the largest rubber plantation in the world by the Amazon River. This would mean lower costs for materials. Henry Ford aimed to not only provide the components necessary for his company’s success, but to also construct an Americanized town (Fordlandia) full of “well trained”, diligent workers. In connection with preparing the land for farming, the plantations positively aided in the development of industrial agriculture. However, Ford’s misunderstanding of the native culture, along with Ford’s efforts to blend American and Brazilian culture, resulted in total failure. Henry Ford’s cultural slips caused numerous complications. He had a misguided assumption that the natives wanted amenities similar to those of the United States. Therefore, he tried to slowly inject the innate workplace with American values and standards. The workers were forced to live a lifestyle that was far from their original way of life. Since all the plantation cafeterias and restaurants only served American food, the natives involuntarily changed their diets. While hamburgers and hot dogs were (and still are) appealing to most...
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...Power Shifts: The Digital Era and Publishing Power Shifts: The Digital Era and Publishing | University of South Carolina | University of South Carolina 2014 2014 Introduction The digital era has led to a slew of technological changes that are drastically changing the norms of the publishing industry which in turn impacts our literary culture. While attempting to avoid a techno-determinist argument this paper attempts to examine the manner in emerging technologies have shaped the publishing industry. The initial focus on the areas of the publishing industry that are most affected by the changes in technology and then examining how these changes ripple through the industry and eventually to methods used by publishers to adapt to the change. The initial focus is one consumer behavior and how it is affected by new technologies then there is a shift to how this shift effects the supply chain that was previously in use and the ways in which the publishing model has been changed. Traditional publisher are then examined to understand how the industry as whole can effectively manage the changes. Finally trends that are currently being implemented as well as the changing demographics and their demands are discussed in order to bring the conversation full circle. Consumers When looking at consumer behavior and how it has been shaped by the innovations of the last 20 years a psychology based perspective is important. Technology has not drastically changed consumer attitudes...
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...com is the pioneering bookstore on the Internet that first opened in July 1995 by Jeff Bezos. The firm offers online shopping services and partnership opportunities such as online search for books, music and video items. The products that they sell include an array of audio, video and book titles. Amazon has one of the widest selections and employs international shipping to virtually every corner of the globe in just a few days. Amazon’s focus is having the biggest selection of free-electronic greeting cards, online auction and millions of books, CDs, videos, DVDs, toys and electronics. They have expanded to different areas of the world, such as Amazon.co.uk and Amazon.de, to service consumers outside of the United States. They aim to be a Cost leader in which their firm has lower costs than the competitors. They have employed different Amazon branches in different parts of the world to lower costs. This allows Amazon to ship their products at a lower price from each point of shipment to the consumer. In recent years, Amazon.com has expanded from being just an online bookstore to an all around online shopping experience. They have coined the tag line "Earth’s biggest selection". Amazon has diversified into different websites. These are the Internet Movie Database (www.imdb.com), LiveBid.com, amazon.livebid.com, drugstore.com (an online retail and information about health and wellness), gear.com (online sporting goods company), homegrocer.com (online grocery shopping and delivery)...
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...Amazon Marketing Plan Lauren A. Meier Argosy University Abstract In this paper you will find the marketing strategy of Amazon. As technology has advanced and internet can be accessed essentially anywhere more and more people are turning to online shopping. Amazon.com, a retail online super center has taken advantage of this and has successfully been able to adjust and expand their consumer base. Starting as an online book retailer they have grown to selling sports gear, electronics, and many other various items. This opened several marketing opportunities and target markets for Amazon. With the release of the Kindle and the soon to be introduced set-top box Amazon is looking at a whole new playing field of competitors. Keywords: Amazon, competitors, online shopping, marketing opportunities Amazon Marketing Plan Company Overview: Jeff Bezos, founder and current CEO of Amazon.com has been committing himself to Amazon’s mission for the past 18 years. Amazon was incorporated in July of 1994 with one sole mission… “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” Almost exactly year later Amazon.com had sold their first online book, "Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought." With their headquarters located in Seattle, Washington and a support system of over 88,400 full and part-time employees; Amazon...
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...the growing market of e-readers and tablets, the way of lifestyle is evolving, bookstores and publishers suffer to adjust to such dramatic change. This present correlational study will focus on the effect of e-reader/tablet market has on publishers and bookstores. According to the Publishing Report on Chain Bookstores (2010), Barnes and Noble state that while the sales of their e-reader collection like nooks are going strong, the sales of paper books continues to fall, as well as the value of their market share. Other publishers note that a further decrease of sales on regular books is expected. Martine (2011) found that consumers are purchasing more electronic books over physical books because of its convenience. Amazon.com Inc., the largest online retailer, has also reported a growing dominance of its Kindle digital reader. According to Bloomberg (2011), Amazon sells 105 electronic books for every 100 printed ones. Such rapid pace of book sales is very unexpected; it is the fastest they have seen in a decade. Amazon is surprised how fast the electronic readers market is developing. Milliot (2011) state that the sales of bookstores have fallen...
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... These functions of management are necessary for a company, such as Amazon, to be successful in a continuously advancing world. Many external and internal factors influence the performance of the four functions of management within Amazon. Some internal factors include ethics, diversity, and innovation. Ethics affects the leadership and controlling functions of management, while diversity and innovation utilizes the leading and organizational functions of management. Some external factors that affect the four functions of management include technology and globalization. The need of technology and globalization takes organizational planning in order to keep up with the increasing demand of readily available products at Amazon across the world. One major factor to a company’s success is the moral and ethical integrity of Amazon’s management team. Amazon’s ethical stance determines the quality of employees the company is able to retain, as well as maintaining their loyalty to the company. If managers display ethical integrity, the employees would be stimulated to perform well, building leadership within the company. If Amazon does not practice ethical integrity, the employees do not perform to their best. This may cause late shipments, or damaged product. This low quality performance would be hard to turn around since they stem from the company's missed opportunity. Likewise, the ethical integrity of Amazon reflects on their customer patronage, ultimately leading to the success...
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...Case Study II, Old Metamora Instructor: W.E. Simonpietri Course: Fundamentals of E-Business – BUS107 Date: February 26, 2011 Betty Shriver is the owner of Betty’s Crystal, a small shop that sells collectible glass figurines in Metamora, Indiana. She has hired me to be a consultant for her on building her ideas and to help her develop an expansion strategy for her online business activities using either Amazon.com or eBay and by using social networking sites. Before I can go into helping Betty decide if Amazon.com or eBay is better suited for her needs, I need to get some background information on the two companies. Amazon.com is a “US-based multinational electronic commerce company and it’s the largest online retailer in the US, with nearly three times the Internet sales revenue of the runner up, Staples, Inc., as of January 2010” (Wikipedia, 2011, para. 1). Amazon.com was founded by Jeff Bezos in 1994 and he launched it online in 1995. Although they mainly are a retail store, the company launched Amazon.com Auctions, a web auction service, in March 1999. Amazon.com has two different price points for selling items on their site. One is called “Sell your Stuff”, which is for individual sellers who expect to sell less than 40 items a month, which cost $0.99 per sale plus a referral fee and a variable closing fee for each media product sold. The other option is called “Sell Professionally”, which is for professional sellers who expect to sell more the 40 items...
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...Fundamentals of Management Final Paper Amazon is an online retailer that is very familiar in many homes all around the world. I personally love shopping on amazon, because I can find almost anything I need electronically, books, now even furniture. I got my first real experience with amazon when I wanted to upgrade my cell phone, but even my cell phone carrier wanted a ridiculous amount for the phone I wanted. Even though I have been a customer for years the (SPRINT) wouldn’t budge on the price. So after a little shopping around, even looked at rival carriers with thoughts of possibly switching, I came across the same phone on amazon. I did a few price matching but the deal amazon had been unbeatable. Now the phone was 300 dollars out of pocket to upgrade with my cellular carrier, and maybe 250 to 275 with T-Mobile and Verizon. Amazon had the phone for 124 $ through Sprint, with a new two year contract, free shipping and took care of all the third party agreements. You call that a deal, well I sure did and have been a faithful customer ever since. Now I gave this little history of my own personal experience with Amazon to show that it’s not just ordinary decision I need to give a consult on for me to advise on investing due to their popularity and fame, but to show I have witnessed firsthand on the other side of the table how the company works and how as a customer I felt for the company. In order to give that kind of advice, I will dig deeper in how the business is and...
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