...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...
Words: 2141 - Pages: 9
...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 ...
Words: 1185 - Pages: 5
...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 ...
Words: 684 - Pages: 3
...Barnes & Noble Refocuses To which environmental force is Barnes & Noble responding? Barnes & Noble is responding to direct external forces. The social environment began to change rapidly for Barnes & Noble before it started to make adjustments in its business strategy. When Barnes & Noble first opened its doors it did so well because it was a one of a kind experience. It wasn’t jsut a bookstore it was a social place to relax and get together.As technology started to develop and become more a part of daily living, it gave way for a major competitor to enter;Amazon was born. More people began catching on to the online shopping trend. This changed the way Barnes & Noble was viewed with its customers. Competition from Amazon became another direct external force affecting Barnes & Noble. Amazon is an internet company with little expenses compared to Barnes & Noble making it easier for them to be more efficient, faster, and more popular with the changing market. Barnes & Noble is keeping up with current trends by offering an E-reader to keep a competitive edge. 2. What is appealing to customers about online ordering? Online ordering is appealing to customers because of its convenience and user friendly elements. Online ordering gives customers the convenience to shop whenever they’d like and wherever they’d like without having to travel anywhere. Online ordering lets customers read reviews and ratings before they make a purchase. Also another factor that makes online...
Words: 487 - Pages: 2
...Workshop Assignment I compared the two sites Amazon and Barnes and Noble, from a branding perspective. The difference I see in their branding strategies is that Amazon utilizes an individual names strategy. The company’s reputation is not directly tied to its products. Amazon sells products that may be from other merchants. Amazon’s products are different because the company sells just about everything. Barnes and Noble’s reputation is for selling books. Barnes and Noble currently have expanded their product market. Both company service mixes appear to offer pure tangible goods. However, some products may offer a tangible good with accompanying services for both websites. I believe Amazon appears to have greater brand equity because of their reputation. CanGo's goal is to conduct branding in such a way that customers will easily recall and respond positively upon seeing its brand (Mastering Marketing, 2001). After comparing elements of service quality and product support, Amazon and Barnes and Noble’s intangibility may not be known until the product is purchased. However, Amazon has a good reputation for quality of service. Amazon’s perishability is not a problem because products can be stored at the supplier’s location. The variability of Amazon depends on which company Amazon sells the product through. The delivery is always subject to human error and the quality of services is variable. The inseparability of Amazon and Barnes and Noble are the same. The service...
Words: 828 - Pages: 4
...set up in 1994 and was open to the public in July 1995. Being one of the first ecommerce portals, it practically invented the online distribution model. Although Jeff Bezos never owned any physical shop, he intended to compete with established players like Barnes & Nobles. Amazon was a start-up on one hand and Barnes & Nobles was a century old store chain headquartered in 5th Avenue in New York. They are a book retail store giant and are in business for over 100 years, with a huge amount of capital at its disposal. Amazon followed a model where its tries to charge the lowest possible price for any particular product, unlike many, who try to charge the highest possible price. Being a new online only store back in 1995, when the internet was not mature and the whole concept of online shopping was new, it was important for them to make it an attractive option, given that for most customers, it would be hard for them to put their trust in it, having to pay first and get the product later. Amazon, originally an online bookstore, later diversified into selling other items. Being a fresh start-up company, it did not have a brand image to maintain which stores like Barnes & Nobles or Borders had to deal with. Today amazon sells almost everything except for perhaps military supplies making it a one stop destination for online shoppers. The majority of the sales are still generated from the Books, CD/DVD and videos. One of the key factors which have propelled Amazon’s growth...
Words: 2093 - Pages: 9
...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)...
Words: 1963 - Pages: 8
...make recommendations about what Amazon could have done differently. Amazon.com was founded in 1994; it is one of the largest book retailers online. Amazon.com also started offering different products online as well. Amazon.com had a variety of electronics like video, furniture, toys, and selling music (Amazon.com). Besides, Amazon has a lot of websites across the nation ranging from Canada to China. Amazon also does shipping to certain countries for some of their products. The growth and diversification of Amazon.com is to have a plan for their customer’s that makes it very convenience and making sure the prices of the products is a significant price for the customer’s to order online. The pros of Amazon.com are to influence the customer’s on saving money when ordering products online. Quality of the products making sure it is in good shape before shipment goes out to the customer’s. Another pro of Amazon.com would be seeing a huge market profit: In May 2006, Amazon.com made its grocery website and nearly 1,000 non-perishable items was placed on the grocery shelves (Amazon.com) Another pro would be individuals everyday goes on the website to shop for products. It is very convenience for customers. Amazon.com privacy act is on their website for the customer’s to read either before or after their orders are purchased. Amazon has reasonable online prices for the customer’s compared to some of the bookstores. Another pro is many individuals visits Amazon on a daily basis and order books...
Words: 890 - Pages: 4
...Amazon’s Executive Summary Amazon started off as an internet based company under Amazon.com, Inc in July of 1995 and operates as an online retailer in North America and internationally, which was founded in 1994 by Jeff Bezos and formerly known as Cadabra.com and has been very lucrative every since its existence. It’s headquartered in Seattle, WA (Bladeknight, 2008). Amazon continues to operate various retail Web sites, including Amazon.com, Amazon.co.fr, Amazon.co.jp, Amazon.co.uk, Amazon.co.de, Amazon.cn, and Amazon.ca. Amazon specializes in a mixture of products, such as digital downloads, music and games, electronics and computers, movies, books, kids and baby items, toys, home and garden, jewelry, health and beauty supplies, apparels, grocery, auto, industrial items, tools, and sports and outdoors accessories (Amazon.com, Inc 2010). Their additional strategy is to focus more on their first new on-site store in Philadelphia. Amazon’s marketing strategy is to focus on their on-site store in Philadelphia, PA and push for it to be as promising as their on-line businesses. They will implements this strategy by continuing with their competitive pricing and beating anyone of their competitors’ pricing on any one items that is sold in their store or websites. Their consumers would be allowed to purchase products that are not on the on-site store shelves or inventory on-line and have the option to have it shipped to the Philadelphia location. The shipping would be free of...
Words: 4755 - Pages: 20
...Assignment #2: Amazon.com’s E-Business Model Monique S. Kearson Dr. Woodard BUS 508 August 3, 2011 In recent years the world has undergone a transformation through time to a new day and age of technology. Any knowledge, answers, advice, or information you need can be found via the internet. Today nearly just about any and everything that you can image can be obtained online. From the beginning Amazon has had a great deal of success, so much success that they have changed the game of brick and mortar to click and order. Today, we live in a time where everyone wants a one stop spot for all of their needs. Not only does Amazon provider consumers with this convenience they also provide a lot of their product at a fraction of the cost. Pros and cons of Amazon’s growth and diversification of business and specialization and my thoughts on what could have been done differently. Amazon.com was founded in 1994 by Jeff Bezos; however the site did not go live until a year later in 1995. The headquarters can be found in Seattle, Washington. It is the world’s largest online retailer that supplies a vast array of books, movies, CDs, DVDs, electronics, phones, and several of other devices. The site also goes as far as retailing clothes, shoes, and fine designer jewels and jewelry. This may seem like any average site but this is a big improvement for a company that initially began as an online book supplier. In the beginning when Amazon.com started out its sole purpose...
Words: 1033 - Pages: 5
...Executive Summary Borders Bookstore is a major leader in the book retail industry, with a differentiated strategy focusing on customer experience and a category management system. New technological growth such as the “Title Sleuth” and e-commerce capabilities allow Borders to stay competitive. The book retail industry is affected by the recent decline of the USA economy, though Borders continues to make a profit. Globalization and technology are factors of the industry, as well as dealing with large amounts of inventory. The competition is fierce and aggressive, consisting of Barnes and Noble, Amazon, Books-A-Million, independent book sellers, Wal-Mart, Target, and Sam’s Club. Rivalry among competitors is amplified between Borders and Barnes and Noble. Other forces, such as substitutes, buyers, suppliers, of the industry environment range in strength. Comparing Borders and Barnes and Noble’s financial data shows that Borders appears to be gaining more profits and using equity more advantageously than the competitor. Yet, Borders must not lose sight of its own weaknesses and threats. Focusing on strengths and opportunities, while improving weaknesses is key for Borders’ success. The value net for Borders is another consideration for the company. Although customers are the number one priority, Borders must realize the effect its decisions have on the stakeholders. Borders seems to be leading the market, and should remain competitive if it can...
Words: 3708 - Pages: 15
...Recommendation for Barnes & Noble MBA-FP6004 Strategy Recommendation Paper Capella University 2015 Introduction Today the power of the Internet and social media as it pertains to companies is immense. A great strategy to harness the power of both can be the difference between one company’s failure and another’s success. The following essay will first begin by giving a brief introduction and history on Barnes & Noble, Incorporated. Second, existing technologies that exist that management should consider with regard to the Internet and social media will be discussed. Third, an in depth look into how Barnes & Noble is currently utilizing the Internet and social media will be shown, as well as, how their competitors in the same industry are using these tools. Fourth, a SWOT analysis for Barnes & Noble using the Internet and social media will be discussed. Also, the implications discovered in the analysis and how they will affect the future of the business will be explained. Fifth, the ethical impacts that come with the use of these tools will be examined and how they may impact the future of the company. Sixth, an assessment of the use of the Internet and social media will be given as they pertain to the global environment and demographics. Finally, a thoughtful business strategy will be given along with recommendations that Barnes & Noble should consider in moving forward with their Internet and social media use. Barnes & Noble Background While...
Words: 2692 - Pages: 11
...Exective Summary: Research shows there is an excellent opportunity for growth and thus increasing the companies’ revenues tremendously. Majority of the company’s researched showed a 30% or higher increase in sales within 5 years which is great for expansion. Building an exceptional customer service program will Increasing sales and return customers and also expanding to new customers. Some background: On-line gaming in the US and global market increased over the past 5 years has been more than 30%. We also found that CanGo customer satisfaction rate is under 50% which threatens the company poetical for growth. Solution: To Expand into the gaming market using a Strategic planning process as part of company operations utilizing internal personnel with external training to get people qualified where they are needed. Identify the companies’ capabilities through Opportunity analysis by replace communication system with a lean, to the point customer service system with operators as needed then build a return customer base by offering rewards and discounts. Market analysis shows the increase of revenue 38% in the US and 30.8% in the global market. Finically CanGo Return on assets is 2.3% and return on sales is 10.94% , excellent. Capital raised the cost of the online gaming to 30,000. With an increase in the market and customer base, CanGo estimates can exceed the 30,000 yearly. SWOT Analysis: Strengths: The e-service that CanGo has offered its customers is a huge...
Words: 4052 - Pages: 17
...Running head: CanGo Final Report CanGo Final Report Advantage Plus Consulting Services Prepared for: Professor David Mozinski Prepared by: Tonya Blevins Sydney Coleman Brent Currie Glen Ferry Tina Foster DeVry University BUSN 460 Senior Project October 23, 2013 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 3 2. SWOT ANALYSIS 4 3. MARKET ANALYSIS 6 4. COMPETITIVE ANALYSIS 7 5. FINANCIAL ANALYSIS 10 6. STRATEGIC PLANNING 11 7. CONCLUSION 17 8. REFERENCES 19 CANGO FINAL REPORT ADVANTAGE PLUS CONSULTING SERVICES 1.0 EXECUTIVE SUMMARY Elizabeth Bennett, who sought to break into the lucrative and booming world of ecommerce, founded CanGo in 2006. Over the proceeding years CanGo would establish itself as a regional online success story, providing customers with the opportunity to purchase books, music, videos and games in an online environment. As the country became consumed by an economic crisis, CanGo somehow managed to sustain its success by providing customers with affordable options for entertainment. In this way, CanGo was able to capture a mass market of a variety of segmented consumers. Despite CanGo’s initial success, however, the organization is not without its fair share of concerns. The primary issue with CanGo is that it lacks a formal strategic business plan. The company has also failed to clearly define what its short-term goals and long-term goals are and how it plans to go about realizing those goals. The company...
Words: 4790 - Pages: 20
...MBA 5501, Advanced Marketing Colombia Southern University Why has Amazon.com succeeded online when so many other companies have failed? Amazon Inc. is an American international e-commerce business. It started by Jeffrey P. Bezos in the year 1994. It is a world’s largest online retailer, the company managed to survive and successful, while many other companies failed. Amazon.com success largely depends on its ability to structure its business model in unexpected ways (Business Insider) Amazon.com provides a massive volume of products from various retailers, giving consumers a variety of options to choose from at a twenty four hour, seven days and three hundred and sixty days in the year. Consumer, again have the option to shop at any time of the day and could purchase all items needed at one time without having to go from store to store. To make it easier for consumers, Amazon.com “creates personalized storefronts for each customer by providing more information and more choices than could be found in a typical neighborhood store. Amazon.com survival and success also depended on its different ventures and willingness to invest in the latest internet technology, which intend made shopping online faster, easier and more personally rewarding to consumers and retailers. The ability to position its self not only as a bookstore but also as a technology company has not only increase the success of Amazon.com but has also met the retailing needs of companies of virtually all sizes...
Words: 1466 - Pages: 6
