...for books was fairly simple; Publishers sold books to wholesalers, who then distributed them to various retail bookstores, institutions, and libraries. Once the books were distributed to different physical stores, consumers could go to the various locations and purchase the books. Amazon.com changed that process completely. Because they are a virtual bookstore, their supply chain for books varies from that of traditional bookstores. In a traditional supply chain, the publishers sell books to warehouses on a consignment basis; if books don’t sell, then the publishers accept returns and provide a 100% refund. However, as the case mentions, Amazon.com contacts publishers, rather than a warehouse, to ship certain books, and they only do so once a customer has actually paid for the order. Amazon.com has also created its own distribution center in Delaware, allowing the consolidation and packaging of books for shipment. Because the firm is a virtual store, they have no bookshelves or limitations on the number of books they can sell. Consumers do not have to leave their living room to purchase a book, which differs from traditional supply chains greatly. 2. Because Amazon.com was one of the first companies to begin selling books online and in doing so, established a loyal customer base, I believe it would not be a good idea for other firms to enter the virtual bookstore market. The case mentions a few big name distributors, such as Ingram, who attempted to enter the online retailing...
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...Business Model of Amazon.com http://www.indiainfoline.com/bisc/ford1.html Amazon.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...
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...2.0 Situation Analysis All New Ebooks (ANE) is a new ebook store that will target African American ebook readers and will virtually be the first online bookstore of this kind. Although competition may come due to the rise of interest in ebooks, ANE will have gotten a jump on the competition and set the stage. The two owners are African American self published authors that have extensive experience in publishing, web technology and social media therefore they have the skill sets to make the estore successful. They understand the shortcomings of the publishing industry in terms of serving the African American community. Ebooks and the ebook publishing business currently are changing the nature of publishing. Eventhough ebooks have been around for years, new technology has given way to a revolution where ebooks are becoming more popular. E-readers have captured the attention of consumers and have increased the demand for ebooks. Research shows that roughly 7% of the adult population is reading ebooks and numbers are growing. New e-readers and e-reader applications have been developed to meet the needs of all types of consumers. “Content is king” as they say and the holder of the content is going to drive the ebook industry as a whole and especially will provide for niche markets that larger companies can’t accommodate. 2.1 Market Summary With the advent of the Apple Ipad, Amazon Kindle, Barnes & Noble Nook and other e-readers as well as apps for mobile phones...
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...Books and Amazon.com are two companies that both sold books but used different methods in operating their businesses. Even though they both were successful businesses, both companies had different leadership styles, visions and goals. Out of the two businesses, only one remain successful and present today. In this paper, I will show how both businesses started, how the leaders differ in leadership styles and techniques, and how Amazon continues to be a great success today. Description of the Businesses I will describe each business and how each business started. I will also describe three main challenges each company faced while establishing or running the business. Amazon.com was founded in 1994 by Jeff Bezos as an online bookstore. As CEO he has built it into the largest retailer on the web, selling everything from groceries to electronics and shoes. Jeff Bezos was working in a quantitive analysis group at an investment firm, when he saw an opportunity to sell books on the internet. In 1994 he went on a cross-country drive from New York to Seattle to start Amazon. He typed his business plan as he went. And he picked up $300,000 dollars from his parents in Fort Worth, Texas. He set up his business in his garage and began selling books via the internet. His business became worth $4.4 billion according to Forbes' latest billionaire rankings in 2009. Since the start of Amazon.com, Jeff Bezos came very close to failure. The company was on the brink of bankruptcy...
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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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...to be successful, both companies needed a good management team and staff that know how to work in today’s market. The approached that Amazon.com and Borders books took to Internet marketing are very interesting. I will be discussing some of the different think that I learned about Amazon.com and Borders books. Description of the Businesses In a world where anyone can purchase just about anything online, it can be difficult to start and maintain a business selling goods online. I will be discussing the history of two company Amazon.com and Border Books online stores. Amazon.com was founded by Jeff Bezos in 1994. It first started as a small business online bookstore, based out of his garage in Bellevue, Washington. Jeff Bezos named his company by looking through the dictionary starting at...
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...purchased goods was complete and total economics. After basically discovering a whole new life, I came to a conclusion that without economics the life that we live would not be possible. Everyone, whether they’re as oblivious as I was or they are aware of it, "Like the potato, economics can be served in many ways,deal with piece ceilings, opportunity costs, taxes of course, goods and services etc. There’s absolutely no way of avoiding it. It’s no secret that our economy isn’t doing the greatest. Majority of people have seen some inflation here and there and they have their ways of dealing with it. It’s no fun to have to deal with it when you’re actually starting to make some good money and on top of it, start your college life. When prices of textbooks at the SVSU bookstore began to rise I had no choice but to look for another source for books. I simply could not afford it, and at the same time there was plenty of other necessities I could be spending that money on. Websites such as Ebay and Cheapbooks were the perfect source to buying my books and they were a huge difference in price as to ECC. When certain prices on these sites weren’t cheap enough for me I looked for more. Then the price of that certain book got cheaper and cheaper. It dawned on me that the more I had an opportunity cost. Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth. How I make money , How I spend money, How I...
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...Group 1 & 2 Case study 1 Can This Bookstore Be Saved? Barnes & Noble (B&N) has been portrayed in the past as a big bully that drove small independent bookstores out of business with aggressive pricing tactics and an unbeatable inventory of books. Today, B&N finds its role reversed as the company fights a fierce battle to survive in the inevitable era of e-books. Booksellers were one of the many industries disrupted by the Internet and, more specifically, the rise of e-books and e-readers. B&N hopes to change its business model to adapt to this new environment before it suffers a similar fate as many of its competitors, like Borders, B. Dalton, and Crown Books, or their peers in other industries, like Blockbuster, Circuit City, and Eastman Kodak. More than ever, consumers are reading books on electronic gadgets—e-readers, iPods, tablets, and PCs—instead of physical books. Although B&N still depends on its physical, brick-and-mortar stores to drive its business (B&N operates 691 bookstores in 50 states, as well as 641 college bookstores), the company has thrown its energies behind development and marketing of the Nook series of e-readers and tablets. Once simply a bookseller, B&N now styles itself as a seller of e-books, devices to read them on, and apps that enhance the reading experience. The company has had success gaining market share, but at a steep cost, and to stay afloat, it will need to contend with increased competition from Amazon, Apple, and Google—not...
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...Affordability of College Textbooks: Textbook Prices Have Risen Significantly in the Last Four Years, but Some Strategies May Help to Control These Costs for Students August 2008 Report 2007-116 CALIFORNIA S TAT E A U D I T O R The first five copies of each California State Auditor report are free. Additional copies are $3 each, payable by check or money order. You can obtain reports by contacting the Bureau of State Audits at the following address: California State Auditor Bureau of State Audits 555 Capitol Mall, Suite 300 Sacramento, California 95814 916.445.0255 or TTY 916.445.0033 OR This report is also available on the World Wide Web http://www.bsa.ca.gov The California State Auditor is pleased to announce the availability of an on-line subscription service. For information on how to subscribe, please contact the Information Technology Unit at 916.445.0255, ext. 456, or visit our Web site at www.bsa.ca.gov. Alternate format reports available upon request. Permission is granted to reproduce reports. For questions regarding the contents of this report, please contact Margarita Fernández, Chief of Public Affairs, at 916.445.0255. Elaine M. Howle State Auditor Doug Cordiner Chief Deputy 555 Capitol Mall, Suite 300 CALIFORNIA STATE AUDITOR Bureau of State Audits S a c r a m e n t o, C A 9 5 8 1 4 916.445.0255 916.327.0019 fax w w w. b s a . c a . g o v August 12, 2008 The Governor of California President pro Tempore of the Senate Speaker of the Assembly State...
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...nature of business the company was engaged in. Soon critics were proved wrong because during the fourth fiscal year the company made profit. Profit was not the only book marker but the fact that there seemed to be a major drift in selling of books from bookshops to eBooks the company was on track to made even more exploits as the online market continued to increase. Since its inception in 1994, the company has been making great business progresses. It has expanded into other countries. This is not usually the case with every other business that tries to penetrate foreign markets however, the company sells versatile products that can easy sold and delivered anywhere on the planet. Amazon reigns supreme as the top dog of online retail and is the only company in this top tier that specializes in ECommerce exclusively. Amazon accounts for 1/3 of US ECommerce sales. They brought in a whopping $34 billion in web sales last year. That’s over three times more than Staples’ web sales and over six times more than Apple’s. Although many other companies have adopted the approach employed by Amazon.com, the company is far much established than any of its competitors around the world. The fact the company works with developers based in different countries, still gives the company a lead over its competitors. Aside from Amazon’s current domination in the ECommerce market, what’s surprising is how quickly Amazon has reached this point, and their continued expected growth rates. With ECommerce...
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...Creating/Sustain Customer Markets Final Project Executive Summary Barnes & Noble (B&N), Inc., is a Fortune 500 company, the largest retail brick and mortar bookseller in the United States, and a leading retailer of content, digital media and educational products in the country.1 Over the years, we have been faced with decreasing profits due to a shrinking market for print books, competition from Amazon.com Inc., and the costs of investing in our own e-reader.2 Barnes & Noble Education, Inc., one of the largest contract operators of bookstores on college and university campuses, legally separated from Barnes & Noble on August 2nd of 2015.3 Therefore, the college student market segment that purchases their books from a Barnes & Noble Education-owned bookstore will not be discussed. Barnes & Noble Education did contribute to increase the brand name of Barnes & Noble, “The Bookseller”. B&N first store opened in 1917 as a bookstore.4 Since then our company has expanded its store offerings to include toys, games, music selection, coffee, and food. With less than 2 years to the anniversary of the opening of our first store, we recommend returning our focus back to books; our marquee product. Therefore, we will provide a detailed marketing strategy to increase the overall sales of books. We will offer solutions to increase purchases of current customers, address customer price concerns by promoting our loyalty program, how to increase foot traffic by offering free wifi...
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...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, seeking moderate, steady growth and limited opportunities for fast growth). On the contrast Border books was found by Tom and Louis Border in 1971. It was started with one bookstore in Ann Arbor. In 1970’s Borders developed software to help manage inventory and sales (which gave Borders a competitive advantage over other companies in the industry). Shortly thereafter, Robert...
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...managers in one of Amazon’s offices to tackle a question buzzing inside the company: Should Amazon bust open the doors of its most prized data warehouse, containing its myriad databases, and let an eager world of entrepreneurs scavenge through its data jewels? For several years, scores of outsiders had been knocking on Amazon’s door to gain access to the underlying data that powers the $7 billion retailer: product descriptions, prices, sales rankings, customer reviews, inventory figures, and countless other layers of content. In all, it was a data vault that Amazon had spent more than 10 years and a billion dollars to build, organize, and safeguard. So why on earth would Bezos suddenly hand over the keys? Because in the hands of top Web innovators, some at the meeting argued, Amazon’s data could be the dynamo of new websites and businesses that would expand the company’s already gigantic online footprint and ultimately drive more sales. Others worried about the risks. A free-forall, one manager warned, would “change our business in ways we don’t understand.” Bezos ended the debate with characteristic gusto. He leaped from his seat, aping a flasher opening a trench coat. “We’re going to aggressively expose ourselves!” he declared. Today, there’s considerable reason to cheer Bezos’ exhibitionist move. Since the company opened up its data vaults in 2002 under the auspices of a project first called Amazon Web Services, more than 65,000 developers, businesses, and ...
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...appreciation in rising markets. The Blue Chip investment Corp. was founded by Eller MBA’s Prag, Neil, Archana, Shalini, Eric with an initial investment of $250,000 from each stakeholder. We endeavor to maintain a portfolio of stocks that generates high profits over a short period of time for the stakeholders. Our goal is to maximize stakeholder wealth by making opportunistic short-term investments based on proactive investment research and a disciplined strategy. Our Strategy Our company’s short term strategy is to invest in US Retail industry’s top performing stocks. We are specifically targeting the high retail stock returns during this US holiday season. The US Retail Industry The National Retail Federation (NRF) estimates that U.S. retail sales will rise 3.9% during this holiday season, overshadowing last year’s growth of 3.5%. Sales during the months of November and December are estimated at $602.1 billion. NRF also forecasts a 13%-15% rise in online holiday sales to $82 billion, stronger than the 11.1% growth seen during the 2012 season. Stocks selected Companies we chose to invest in are Walmart, Target, Macys, Amazon. These retail companies have been around for years, and doing good business. Moreover these companies are industry leaders who’re giving higher returns compared to its peers in the industry. Performance of selected companies in the Retail...
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...healthcare, CVS also supplies MinuteClinics in more than 900 retail stores.[1] CVS/Pharmacy, the name of the retail space where more than five million customers are served daily, offers pharmacy care from over 24,000 pharmacists as well as beauty, convenience, and healthcare products covering all areas.[2] Number of locations: 9,500+ (most current)[3] Target customer: The average age of CVS customer is 39. Based on CVS’s diverse beauty department, their target market largely consists of women. In fact, 80% of their customers are women.[4] Contact Person: Bettina Tonelli-Sippel, Category Manager, Healthcare Why: CVS has enjoyed considerable sales growth since 2010. In the last fiscal year, 2014, the company saw revenue rise by 10% to $139.4 billion, led by its Pharmacy Services and recent acquisitions. It’s retail sales grew by 3% as the company enters new markets, add locations in existing markets, and relocates existing stores to more convenient locations. In 2014, CVS Caremark formally changed its name to CVS Health, signaling a transition towards being more health-oriented. Paired with this change was the decision to eliminate tobacco products, the first national pharmacy chain to do so. Clearly, CVS wants it customers to be healthy. They are more than simply a company they are an organization that provides for the social well-being of all Americans. Given my group’s product, I would say that CVS is a qualified prospect. Despite their strong...
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