...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...
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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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...Amazon.com's New Business Portfolio Being Launched Mark Vasquez Park University Amazon.com's New Business Portfolio Being Launched I. Describe the portfolio of new business services being launched by Amazon.com Amazon has mastered the logistical and technological facets of successfully running itself. Amazon.com has thrived in a highly competitive retail atmosphere. Amazon.com now seeks to expand its enterprises by offering its own resources, retail expertise, business enhancements, technological tools and highly advanced features to other businesses for a price. The incentive for these businesses to purchase Amazon.com’s services is so that they are able to streamline their own processes and become more efficient and ultimately more profitable. Amazon.com seeks to appeal to prospective clients by offering them services that will enable them to operate in a more seamless manner. Essentially Amazon.com is selling various “easy buttons” for the many “chores” of running a business. Outside companies would be able to Amazon.com’s operational systems to efficiently distribute their products, use their warehouse space for storage, calculate and analyze statistical information, store data, and utilize Amazon.com’s platform to access the media. Critics are skeptical of Amazon.com’s expansion plan because the cost of purchasing the technology needed is a significant expense. In addition to this, hiring tech professionals to develop, hone and run these new services is another financial...
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...Example text •This is an example text. Go ahead an replace it with your own text. This is an example text. •Go ahead an replace it with your own text. This is an example text. What does Amazon Do? Example text •This is an example text. Go ahead an replace it with your own text. This is an example text. •Go ahead an replace it with your own text. This is an example text. Example text •This is an example text. Go ahead an replace it with your own text. This is an example text. •Go ahead an replace it with your own text. This is an example text. Why has Amazon.com succeeded online when so many other companies have failed? Will the Kindle revolutionize the book industry? Why or Why not? What’s next for Amazon.com? Is cloud computing the right direction for the company? Where else can it grow? Questions SWOT •Point 1 •Point 2 •Point 3 $ Models Porter •Point 1 •Point 2 •Point 3 PEST E •Point 1 •Point 2 •Point 3 4 Ps •Point 1 •Point 2 •Point 3 This is an example text. Go ahead and replace it with your own text. It is meant to give you a feeling of how the designs looks including text. This is an example text. Go ahead and replace it with your own text. It is meant to give you a feeling of how the designs looks including text. GAP Example text This is an example text. Recommendations Example text This is an example text. Example text This is an example text. Example text This is an example text. This is an example...
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...Bezos, founder of Amazon.com Life and work story of Jeff Bezos Career Pathways Period of Time Came to this new-established firm after graduate from university Fitel 1986 1990 Worked as a computer science specialist then pointed as a senior vice president D. E. Shaw & Co. 2013 Purchased the newspaper section for $250 million cash of TWP The Washington Post Introduced Amazon.com to public and successfully made $20,000 sales in a week and kept improving the site till now Amazon 1995 2007 Establish an aerospace company, which is aiming to build up human existence in outer space by developing new technology in space flight Blue Origin Jeff bezos was born in Albuquerque, New Mexico on 12th January 1964 with full name of Jeffrey Preston Bezos. He ever turned his parents’ garage into a laboratory and makes cordage of electrical contraptions around house. He pursued his interest by studying computer science and electrical engineering at Princeton University, New Jersey, United States. On that time, computer science was in high demand to study market trends. Being graduated from university, Bezos started to work in Fitel, new firm that tried to establish network for international trade. Then he was hired by D. E. Shaw & Co., a global investment firm based in New York City, America and shortly he became a senior vice president in 1990. On July 16, 1995, Bezos opened Amazon.com, named from the South American river which has endlessly flow and...
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...Amazon.com 1. How would you define Amazon’s industry? What difficulties do you encounter identifying primary competitors and key lines of business? Amazons primary industry is electronic commerce. At its core Amazon is an electronic commerce retailer. But over the years the brand has developed into something grander. Originally the company started out as an online bookstore but now has diversified its inventory to include dvds, software, video games, electronics, furniture, apparel, food, toys, and jewelry. Amazon has also become a producer of their own brand of consumer electronics, most notably their line of Kindle e-book readers, Fire Tablets, Fire TV, Fire phone, and is now a leading provider of cloud computing services. Now Amazon is starting to introduce a new service called Amazon Fresh. Amazon Fresh will bring the grocery shopping experience into the comfort of your home. The customer will be able to order his or her groceries through Amazon and have them delivered the very same day. Fast and convenient, no longer will one have to make the tedious trek out to the supermarket in order to load up on food. The difficulty in identifying a primary competitor is the fact that no company comes close to doing everything that Amazon does. Sure there are plenty of companies that specialize in selling some of the items that are found on Amazon.com, but nowhere else will you be able to order a used copy of an algebra textbook your son needs for school, a diamond pendant for your...
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...follow the wave launched by Apple by creating their own tablets. But among the entire followers one is completely different considering its strategy and its core business: Amazon.com. The biggest Internet retailer, which already decided to enter into the market of technological devices by launching an e-reader named “the kindle” in 2007, created in 2011 its own tablet named “the Kindle Fire”. In 2012, while Apple still holds more than the half of the market share in the tablet sector, Amazon.com decided to launch its second generation of Kindle Fire a few weeks before the launch of the third generation of Ipad. And even if amazon.com does not seemed to be, at first sight, a really serious competitor for Apple, like Samsung could be, its innovative strategy could make it the most disruptive concurrent of the Californian Company. That is why we decided to make a study about the strategy used by Amazon to sell its Kindles. The first part will be focused on the history and the culture of Amazon. Then we will move to the study of the global market of tablets in order to identify the key aspects of this new market. And finally our last part will be completely focused on the Amazon.com strategy compared to the one of its biggest competitor: Apple. Part I: Amazon.com a company focused on customer needs Amazon.com was founded in 1993. Jeff Bezos, who was graduated from...
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...success by focusing on its primary market: families of four or five individuals with adults ages 24 to early 40s who are informed. Value-conscious consumers – consumers like Leslie Wells. Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, Illinois, was no ordinary trip to the grocery store. “You go crazy,” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples, and discounts as high as 30 percent, Wells spent $76 on groceries - $36 more than she had planned. Wells fell prey to what a Cub executive calls “the wow factor”. A shopping frenzy brought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get. Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase services, or, in some cases go out of business. With Cub and other super warehouse stores springing up across the country, shopping habits are changing too. Some shoppers must drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof, and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing, and sheer size encourage shoppers to spend far more than they do in average supermarket. The difference between Cub and most supermarkets is obvious...
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...Why has Amazon.com succeeded online when so many other companies have failed? Amazon has succeeded because there prices are unbeatable, they have many rewards and perks for faithful shoppers. Amazon customer service is superb mainly because they are available 24 hours a day; they answer their phones and the go above and beyond with customer service. Case and point I order and item that was defective (the first defective item in 6 years of shopping with Amazon) and the seller ignored my emails and request, so I contacted Amazon customer service and my money was refunded no questions asked within 24 hours and I was told that there was no need to return the defective item to the seller. The ease of the website when shopping on Amazon is so simple. There is a lot of white space so things are not jumbled together. The Website is very user friendly easy to understand and in easy to read text, all items have picture and specifications. There are many sellers with ratings to add to your shopping experience you are able to read other shopping experiences with a specific seller. Prices are comparative to going to the actual store but I have found that by shopping around you could find the exact same items for a lot cheaper. This beats the heck out of driving around looking for that discount. Amazon customer service is unparrellel and many of their customers are happy repeat cutomers. This is very noticable by the reviews of their products, the reviews of the seller and the...
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...focusing on its primary market: families of four or five individuals with adults ages 24 to early 40s who are informed. Value-conscious consumers – consumers like Leslie Wells. Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, Illinois, was no ordinary trip to the grocery store. “You go crazy,” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples, and discounts as high as 30 percent, Wells spent $76 on groceries - $36 more than she had planned. Wells fell prey to what a Cub executive calls “the wow factor”. A shopping frenzy brought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get. Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase services, or, in some cases go out of business. With Cub and other super warehouse stores springing up across the country, shopping habits are changing too. Some shoppers must drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof, and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing, and sheer size encourage shoppers to spend far more than they do in average supermarket. The difference between Cub and most supermarkets is obvious...
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...companies have proven that being the first is not always the best and the last sometimes has its perks but being last can also have its failures as well. In this report, we will analysis the advantages and disadvantages of both the first and late mover theory along with the pros and cons of the advantages and disadvantages. After the advantages and disadvantages are provided, an example of real firms who have been successful and those who have failed using each theory. Finally, a definitive and unbiased recommendation of which theory to use will be provided as well as specific attributes which constitute the most advantageous context in which the chosen theory operates. Introduction Companies today are very competitive when it comes to development of new products and putting them out in the limelight for consumer purchase. The number one question that should be asked before a company puts a product out in the market would be is following the first-mover theory an effective way to build new business or would creating a new version of the products with the later-mover theory be a better way to build a new business? First let’s define these specific theories. The first-mover theory is a competitive advantage that a company may achieve by being the first to enter a specific market or developing a new product or service prior to rival companies (David, 2013). Being the first means that the company has the advantage to acquire superior brand recognition and customer loyalty. The company...
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...Amazon.com: Culture of Metrics Why a case study on Amazon? Surely everyone knows about who Amazon are and what they do? Yes, well, that may be true, but this case goes beyond the surface to review some of the ‘insider secrets’ of Amazon’s success. Like eBay, Amazon.com was born in 1995. The name reflected the vision of Jeff Bezos to produce a large-scale phenomenon like the River Amazon. This ambition has proved justified since, just 8 years later, Amazon passed the 5$billion sales mark – it took Wal-Mart 20 years to achieve this. By 2008, Amazon is a global brand with over 76 million active customers accounts and order fulfillment to more than 200 countries. Despite this volume of sales, at 31 December 2007, Amazon employed approximately 17,000 full-time and part-time employees. In September 2007, it launched Amazon MP3, a la carte DRM-free MP3 music downloads, which now includes over 3.1 million songs from more than 270,000 artists. Vision and Strategy In their 2008, SEC filing, Amazon describes the vision of their business as to: Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise. The vision is to offer Earth’s biggest selection and to be Earth’s most customer-centric company. Consider how these core marketing messages summarizing the Amazon online value proposition are communicated both on-site and through offline communications. Of course, achieving customer loyalty...
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...of Tables..............................................................................................IV 1 Introduction.................................................................................................. 1 2 Market Leadership as a Strategic Goal in Electronic Commerce ................ 1 2.1 Value Chains and Actors in EC............................................................. 1 2.2 Principles for Success in Electronic Commerce.................................... 3 2.3 Porter’s Branch Structure Analysis applied to EC Markets ................... 4 2.4 Context Factors and Value Creation Potentials in EC Markets ............. 8 2.5 First Mover Advantage and the Role of the Pioneer ............................. 9 3 Amazon.com – The Road to Market Leadership ....................................... 10 3.1 Company Portrait ................................................................................ 10 3.2 Redefining Book Retailing: Amazon vs. Barnes & Noble .................... 11 3.3 Realizing the...
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...Amazon revenue and business strategies from their SEC filings / Investor relations. The annual filings to give a great summary of eBay business and revenue models. A good summary of the latest business model initiatives is available in this Amazon annual report summary for 2011. For Q4, 2010: * North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.21 billion, up 45% from fourth quarter 2009. * International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and new Italian sites, were $5.74 billion, up 26% from fourth quarter 2009. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 29%. Amazon has come a long way since it launched in 1995: From: and it’s offices… to it’s current Seattle headquarters: Amazon performs exceptionally efficiently measured against revenue per visitor, which is one of the key measures for any commercial website, whether it’s a media site, search engine, social network or a transactional retailer or offers travel or financial services. Of course profit per user would be quite different due to the significantly lower costs of...
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...Camacho, 2015. 9 -6 1 5 -0 1 3 REV: AUGUST 15, 2014 RORY MCDONALD CLAYTON CHRISTENSEN ROBIN YANG TY HOLLINGSWORTH AmazonFresh: Rekindling the Online Grocery Market We believe that a fundamental measure of our success will be the shareholder value we create over the long term. . . . We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages. Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case. — Jeff Bezos, 1997 Letter to Shareholders As Fishmonger Ryan Reese skillfully filleted a fresh rainbow trout at Seattle’s Pike Place Market one morning in late 2012, the usual mix of tourists and locals gathered to admire his prowess. The iconic downtown market’s appealing array of fresh and specialty foods drew daily crowds eager to admire its vendors' showmanship and buy their wares. But the trout wasn't for any of them. Ryan's customer was miles away on Mercer Island. Within hours AmazonFresh, the grocery subsidiary of Amazon.com, would deliver the fish, which she'd ordered online, right to her doorstep.1 AmazonFresh had spent five years testing and refining its business model since its launch in August 2007. The challenges were numerous; no other online grocer had yet succeeded on a national scale. Amazon typically allowed new businesses only a short time to achieve profitability before shutting down failed attempts. But...
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