...research on e-commerce. Amazon and eBay are the two largest e-commerce companies. As of this writing, Amazon has a market cap of about $87B, trading at a trailing twelve-month P/E of about 139. eBay has a market cap of about $42B, trading at a trailing P/E of about 13. Each company competes with many other companies in many different areas. For example, Amazon competes with Apple on tablets (Kindle vs iPad) and digital media (Amazon’s media store vs iTunes). Ebay’s Paypal unit competes with multiple payment companies, and its marketplaces division competes with other “peer-to-peer” e-commerce sites like Craigslist. But given the potential size of the e-commerce market (not to mention the online-to-offline commerce market), Amazon and eBay’s main competitors are each other. And to understand their large strategic moves (e.g. large acquisitions like GSI and Zappos), it is important to understand their fundamentally opposing strategic outlooks: eBay wants commerce to be more decentralized (around its GSI/Magento partners and eBay marketplaces sellers) and Amazon wants it to be more centralized (around itself). First, some background. During the dot-com boom, many largest offline brands debated how to best move their businesses online. Some tried to build their own websites from scratch. Others partnered with commerce technology providers. Toys ‘R’ Us took a novel approach and signed a “strategic alliance” to outsource all of their e-commerce operations to Amazon. Over the next few...
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...Kindle Fire GROUP 2 By: Ayan Tariq Ashish Rana Claudius Grego Saif Ahmed Table of Contents Models.............................................................................Page No. Executive Summary................................................................................3 Boston Consulting Group; Chapter 2......................................................4 SWOT-Opportunities and Threats; Chapter 2........................................5 SWOT-Strengths and Weaknesses; Chapter 2........................................6 Product-Market Combination; Chapter 2................................................7 Five Stages of Consumer Decision Making; Chapter 4 Evaluation of Alternatives.............................................................8 Five Stages of Consumer Decision Making; Chapter 4 Purchase Choice Decision..........................................................9 Demographics Segmentation; Chapter 6...............................................10 Perceptual Map; Chapter 6....................................................................11 AIDA Model; Chapter 12.......................................................................12 Promotion Strategy/Themes/Appeal; Chapter 12 and 13.........................13 Recommendations.................................................................................14 Appendix A......................................................................................15-17 Appendix B..........
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...You need to say something rather than just launching into it. Option 1: Cost Leadership With a long term strategy based on the ability to be cost leaders in the online retail market, Amazon Inc. strives to ensure all corporate level decisions adhere to this goal. REFERENCE Prices on Amazon.com are around the lowest in terms of products sold and the background services that make it possible for third party traders to make use of the marketplace. This strategy employed has made it possible for Amazon to recognise significant increases in revenue; however they have recently begun to notice changes in their profit margin. A loss of $0.1 billion was recorded last year, REFERENCE which was attributed to modification made to their distribution centres and the underwriting of costs of production for the Kindle Fire. There is a need to for Amazon to increase their profit while striving to maintain the balance between low costs in order to not lose their customers. In order to achieve this they should look to increasing the costs associated with Third Party traders. REFERENCE These fees include: * Subscription Fees * Transaction Fees * Advertising Fees * Affiliate Fees There are risks attached to pursuing this proposed strategy as it involves increasing prices which always serves as a deterrent to customers. Some of which include government regulations, new entrants and pre-existing customers confidence. * Government Regulation: any unfair increases in subscription...
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...Antitrust Laws After much research and investigations on Antitrust Laws, and reading up on individual cases, I think that overall Antitrust Laws are effective and good for the people. Without the Sherman, Clayton, and Federal Trade Commission Act, there would be a monopoly of every industry, trade, marketing, and services. This would in-turn lead to higher prices for the consumer, lower quality products, less innovation, and poor service. As I mentioned in my opening sentence, I will bring up two individual cases that the DOJ (Department of Justice) is pursuing when it comes to Antitrust Laws. I would like to begin by quoting the DOJ’s mission statement. Mission “The mission of the Antitrust Division is to promote economic competition through enforcing and providing guidance on antitrust laws and principles. Antitrust Laws The goal of the antitrust laws is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace. Competition in a free market benefits American consumers through lower prices, better quality and greater choice. Competition provides businesses the opportunity to compete on price and quality, in an open market and on a level playing field, unhampered by anticompetitive restraints. Competition also tests and hardens American companies at home, the better to succeed abroad. Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution...
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...economy, where would we be without a laptop or computer? It would almost be like you were living in the dark ages. While laptops and computers are convenient to have, Apple has come out with a new and revolutionary product that changes everything. It’s called the iPad. Apple Inc. is a multinational corporation that creates consumer electronics, computer software, and commercial servers. Founders Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976 and incorporated the company on January 3, 1977 in Cupertino, California (Bellis). The Apple iPad was announced on January 27, 2010 with retail availability commencing in April and systematically growing in markets throughout 2010. The iPad is twice the size of the iPhone with the same capabilities of any other laptop computer, but still smaller, making it more convenient to carry with you. For an iPad with Wi-Fi, it has a reasonable price of $499 for a 16GB, $599 for a 32GB, and $699 for a 64GB. If you want one with Wi-Fi and 3G, you can find one for $629 for a 16Gb, $720 for a 32Gb and $829 for a 64GB. In this environmental scan, I am going to break down the iPad into five different environments, social, economic, technological, competitive, and regulatory. The first environment is the social environment. According to the consensus, Apple has sold roughly 8.25 million units (Dewitt). With the most recent estimates of the world’s population being at 6.8 billion and growing, I would say that the iPad...
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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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...recommendations about what Amazon could have done differently. Amazon.com started out as a large online book retailer. It has transformed itself from the little bookstore on the corner to the mega-super-duper-full-of-stuff store that squats at the end of a monstrous parking lot! You can search inside books, read customer reviews of books, etc. They have managed to keep their pricing low. Their product list has grown to include music, electronics, toys, home improvement and the list goes on. It seems that their goal of providing products for every aspect of life is working. 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. Amazon is innovative – it started by losing money on books. However, it quickly expanded into other products. Surprisingly, now it even makes money on books though it sells them at a deep discount. As previously stated Amazon began by allowing customers to write comments on the products it sells. There was great resistance from the sellers but the customers loved it. Now the practice has become an industry standard. http://seekingalpha.com/article/78257-the-case-for-amazon-com. It has becomes apparent that the company is so good at reinventing itself because it's gotten into a mode of continually doing so. I think the folks at Amazon come to work each day and think...
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...International Business Strategy II 1. Liu Shu 6509037 Introduction Google and Apple are giants in technology industry. These two companies provide innovate products or service and have unique organizational structure and culture. Under the increasing pressure of cost reduction and local responsiveness caused by globalization development, both Google and Apple are transforming into transnational organizations. This report will critically evaluate the comparative transnational effectiveness of Google and Apple in terms of motivation means and mentalities, layers of competitiveness, across boundaries management and corporation social responsiveness (CSR). 2. Motivations Means and Mentalities Initial incentives of Apple and Google expansion were different because of their distinct business focuses. Apple generates its profits by selling cutting-edge electronic devices, whereas Google even though has its own products such as some newly invented wearable devices, its benefit basically comes from their advertising. Therefore, Google do not have to secure key supply, and access to low-cost market. Nevertheless, seeking boarder market seems to be very important for both of these to enterprises. Moreover, the emerging motivations for Google and Apple are quite similar. After they began to expand, the forces which triggered the expansion in the first place, may turn into secondary when they make emerging global...
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...form factor is typically smaller than a notebook computer but larger than a Smartphone. Bigger and Brainier than a smart phone but smarter and sleeker than a net book, tablet computers have revolutionized the way in which modern day consumers experience and fulfill their computing and communication needs. The credit of pioneering this field and creating the market segment goes to Apple with launch of i-pad in 2010 and once again proving its capability of a leading innovation driven firm which redefines the course of overall computer industry as a whole from time to time. Since then the tablet sales have seen unexpected momentum in terms of growth in sales figures worldwide with apple emerging as the largest supplier till date as compared to all others. However, Android based tablet PCs are expected to take over Apple’s share in the coming years. The world has seen aggressive competition among tablet PC manufacturers after the launch of iPad from Apple. Within five months of the release of iPad, Samsung launched its Samsung Galaxy Tab to compete with Apple. Since then, the tablet PC manufacturing industry has seen the emergence of numerous players. Most tablet manufacturers such as Asus, HP, and Lenovo among others released their models of tablet PCs in quick successions, but none of them could surpass Apple’s share. 2. Industry Dynamics The “consumer electronics” (CE) category of products includes Smartphone, tablets, computers, televisions, video...
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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...••• THE HIDDEN EMPIRE Three digital engines to reshape and dominate retail mazon.com Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven’t been compared because 1- sales have not been officially disclosed 2- they haven’t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q2 2012 +29% Market cap $105 bn Customers 152 m Employees 51,300 Annual revenue $48 bn Internet traffic rank 11th Retail brand 1st Paid out $1.2 bn Paid out $775 m Source: Amazon.com, Alexa, Brandz. Market capitalization as of the 5th of November 2012 2 × growth of 1,7 × market cap 4 × # customers 13 × more than 27% more than before before to buy to buy E-commerce market Why? A vision… From 1994, Jeff Bezos knew he could create a retail website...
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...Focus is what develops a Brand We Seem to Be Confusing Product Brands and Company Brands It's obvious that Procter & Gamble is a company brand, but what's an Apple? Like P&G, Apple is a company brand. But unlike P&G, the Apple company brand is a powerful motivating force for buying Apple product brands including the iPod, the iPhone and the iPad. Every company should have a powerful company brand, but they don't. Except for a handful of companies like Johnson & Johnson, most company brands influence very few consumers. How many consumers go out of their way to buy Procter & Gamble products? Or Unilever products? Or PepsiCo products? Or General Motors products? Not very many. How do you build a company brand? Many marketing pundits have a lot to say about this subject. Some typical approaches include: * Communicating culture, concern for the environment and sustainability programs. * Purpose-driven marketing, based on social responsibility and standing for something that inspires consumers. * Through innovation, by launching new products and services that are on the cutting edge of design and performance. All of these things are worth doing, but they don't do much to build a company brand. The problem is the noise level. It's not just the Fortune 500 that are causing the problem. That's just the tip of the corporate iceberg. It's the Fortunate 17,509. There's nowhere near enough room in the average consumer's mind to file away facts...
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...Amazon.com the Hidden Empire Three digital engines to reshape and dominate retail Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven‟t been compared because 1- sales have not been officially disclosed 2- they haven‟t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q1 2011 +38% Market cap $90 bn Customers 137 m 3 × growth of 2 × market cap 2 × # customers E-commerce market Employees 33,700 Annual revenue $34 bn Internet traffic rank 16th Retail brand 1st Paid out $1.2 bn 15 × more than 16% more than before before to buy Source: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011. Why? A vision… From 1994, Jeff Bezos knew he could create a retail website that would not have the limitations...
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..."Search Inside The Book", convenient checkout using "1-Click Shopping", and several community features like Wish Lists that help customers discover new products and make informed buying decisions. Amazon.com operates retail websites and offers platforms that enable third parties to sell products on our websites. We also provide platforms for third-party retailers, marketing and promotional services, and web services for developers. Amazon Prime History Launched in February 2005, Amazon Prime aimed to get customers to spend more. For $79 a year, members got free two-day delivery on an unlimited number of items. In February 2011 Amazon introduced Prime Instant Videos, an unlimited movie and TV streaming service similar to Netflix. It also created the Kindle Owners Lending Library, a digital public library that makes select eBooks available for free, only Prime members got access. Similar to Netflix, Amazon Prime offers instant, unlimited streaming of thousands of films and television series and original programming. Unlike many competitors however, Amazon Prime also allows à la...
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