...Nguyen Quoc Khanh BUS 103 Case 3: Amazon: One E- Store to Rule Them All. 1. In what way does Bezos’s decision to develop and deliver the Kindle show systematic and intuitive thinking? First, Bezos has shown his intuitive thinking in the decision of unveiling Amazon Kindle, a new device that is completely outside Apple’s catalog though Amazon still sold Apple’s iPod. Furthermore, he introduced to Medias his product, it seemed like a declaration to Apple. Because Apple is a giant of technological industry, so the situation would be complex to be its competitor. However, it was the only way to make a technological evolution by Kindle. As a result, this situation required Bezos to have a quick and broad evaluation for making the decision. Besides, the systematic thinking of Bezos was shown by introducing the free application “Kindle for iPhone and iPod Touch” when he realized the benefit of allowing readers to read books on a variety of devices. After, in order to upgrade Kindle, Amazon acquired Touchco Company, which specialized in touch screen technology. These decisions are systematic because Bezos had to analyze the situation step- by- step, thoroughly and carefully with full of information towards an effective and logical decision. 2. How do you describe the competitive risk in Amazon.com’s environment as it leads the market for digital book downloads? Being the leader of digital book downloads market; Amazon.com is likely to face to the competitive risk from another...
Words: 1019 - Pages: 5
...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...
Words: 5329 - Pages: 22
...discuss how Amazon has been able to stay so successful with new and upcoming competitors. In addition to discussing the success, the struggles will be evaluated as well as ways to improve the company. When visiting Amazon, you can get several of your products at one time; it is a one stop shop type of deal online. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. 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. In November of 2010 Amazon signed agreements to acquire Quisdi, Inc. and LOVEFiLM International Limited (amazon.com). They expect that these acquisitions will close in 2011, because of regulatory approvals and closing conditions (amazon.com). When acquiring other companies Amazon should be more careful, because the immediate effect of receiving the cash is good for the company but the long term effect of losing the acquisitions is more dangerous for the company. Another sector that Amazon wants to continue to grow is the international market. When doing business internationally it is important to know each countries exchange rate as this can have a positive or negative impact on the company. One new partnership has been successful for Amazon is the purchase...
Words: 1610 - Pages: 7
...Project Question: What has made this company successful? Provide detail as to the company’s global strategy. Amazon was founded in 1994. Amazon Inc. is the world's largest ecommerce retailer. The company currently employs more than 43,200 people in 18 U.S. states and 14 international locations. Its headquarters are in Seattle, Washington. On Amazon.com, consumers can purchase anything from books, movies, video games, to, clothing, and even automotive parts. Founder Jeff Bezos started selling only books on Amazon.com in 1995. Bezos shipped his goods to consumers from his garage. In 2007, Amazon made it big when it came out with the Amazon Kindle. There are over more than a million books, newspapers and magazines available for purchase on the Kindle, Kindle Touch and Kindle Fire. Bezos believes that everything takes time. Bezos makes a statement on Forbes, “Just by lengthening the time horizon, you can engage in endeavors that you could never otherwise pursue. At Amazon we like things to work in five to seven years. We’re willing to plant seeds, let them grow—and we’re very stubborn. We say we’re stubborn on vision and flexible on details”. The goal of Amazon is to move quickly to solidify and extend our current position while we begin to pursue the online commerce opportunities in other areas. Amazon sees substantial opportunity in the large markets they are targeting. Amazon always seeks long term and never rushes situations. They look for Market leadership because it can translate...
Words: 597 - Pages: 3
...Amazon Amazon is Britain's most influential retailer - and it doesn’t even make a profit Amazon has become the biggest online retailer in the world and the most influential retailer in Britain, here are a couple of questions that shine a different light on the company. When it generated sales of $15.7bn (£10.1bn) in its most recent quarter to June 30, how big were Amazon’s profits? Zero. It made a net loss of $7m.Given the retrenchment of retailers such as Tesco from the electrical market because of the growth of online sales. What share of the UK electrical market does Amazon have? Every retailer in the country – from Tesco to the corner shop newsagent – talks about how they are battling to evolve their own business to cope with the growing influence of the Seattle-based company. The mighty Tesco has been forced to admit its biggest hypermarkets are outdated and overhaul its non-food range, Comet and HMV have fallen into administration, newsagents have installed lockers where shoppers can collect Amazon orders, and people are now reading books on their Amazon-made Kindles. Even those retailers operating in sectors that Amazon does not currently serve – such as food and fashion – are worried about what happens when it starts. At the same time, so many uncertainties remain about the future of Amazon, launched in 1995 as an online bookstore. The row around the lack of corporation tax paid by online multinationals such as Amazon tended to miss this pivotal point – which...
Words: 2535 - Pages: 11
..."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...
Words: 1950 - Pages: 8
...••• 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...
Words: 5633 - Pages: 23
...Ana Gonzalez Professor Andreassi MGT-101-A 6 October 2014 Case 4: Amazon: One E-Store to Rule Them All 1) The CEO of Amazon.com, Jeff Bezos, effectively employed both intuitive and systematic thinking when he developed the Kindle for sale. Through Bezos’s creative idea in the Kindle, one can see that he makes decisions that seem to be based off of intuitive thinking. With this approach, people make decisions according to their past experiences and gut feelings, as opposed to analyzing all of the facts. Bezos took a risk in the creation of the Kindle going off of his gut feelings that it would be a successful idea. From previous experiences, he knew that “music and video have been digitalized for a long time, and short-form reading has been digitized, beginning with the early Web. But long-form reading really hasn’t”. The company needed a push to rise above their competitor, Apple, and Bezos was able to provide a creative idea that he thought would work based off of things he has experienced. Fortunately for Amazon, his intuitive idea was a success and “Amazon now sells more Kindle books than paperback books”. On the other hand, the development of the Kindle also reveals Bezos’s ability to think systematically. Systematic thinking involves a “rational, step-by-step, analytical” approach to problem solving. Someone who thinks systematically tends to use facts and details to lead him/her to decisions. Also, systematic thinkers often break down problems into smaller...
Words: 915 - Pages: 4
...1. Amazon already takes advantage of your individuality to drive its personalization effort. When you visit Amazon home page you are offered the products that Amazon thinks you are interested in. Amazon makes this guess based on tracking information provided by your Web browser using cookies. So it looks like Amazon can easily do the individualizing pricing. But I think that this is not a very good idea. This strategy is too risky. Customers don’t like to pay more and customers don’t like to feel ripped off. They like discounts, offers, coupons. Maybe it would be better to do individualized discounts instead of pricing (if they don’t do it already). From another side even with all the technology in place it would be hard to guess customer’s financial ability. Also I think that individualized pricing would bring Amazon’s customers satisfaction down because some customers own more than 1 user accounts per household and different pricing might look suspicious. 2. I think that Amazon added more value to their physical books by creating the Kindle. The Kindle isn’t as much about reading digital books as it is about customer having access to the store 24/7. The device ordered from Amazon arrives linked to your customer account, what makes this device a preconfigured cash register. Your ability to buy products is simplified to a few clicks. As per the text book, roughly 1 million titles are offered in the Kindle amazon book store. Customers are also offered a great feature to search...
Words: 424 - Pages: 2
...happy customers. Amazon.com has unbeatable prices and they have many perks for the loyal customers. Their customer service is excellent. Amazon’s website is very user friendly, easy to understand and also very easy to navigate. There is a lot of white space so things are not jumbled together. All items have pictures as well as specifications. Prices are comparative to actual stores, but I have found more variety of any particular product on Amazon.com than in actual store. When a customer orders a product from Amazon.com the customer is updated every step of the way. Once an item is delivered an email is received to rate the shopping experience with Amazon. Amazon also has a great return policy. This is also one of the major reason many prefer to shop at Amazon.com. Yes Kindle has already revolutionized the book industry. With Amazon cloud you can carry a massive amount of reading material in the palm of your hand. The Kindle is very easy to use and/or operate, download instructions are very simple and...
Words: 569 - Pages: 3
...What are the key drivers to Amazon’s success? Why do customers love Amazon? Amazon was never invented by the most expertise people and was not based on the most invented technologies; it has been kept its status as the world’s number one wholesale website. There are few significant key drivers figured out throughout the article and the most remarkable one was that it totally is a customer-centric company. Amazon works under the slogan of ‘Customer comes first.’ Jeff Bezos, CEO of Amazon truly believes that building a good relationship with long-term customers is the most valuable thing of all. Amazon does not just stay doing perfunctory things for its customers but it makes each customer to feel that they are being cared individually and feel more engaged with the company. Amazon tracks down purchase history of each customer while they are on the website and recommend the most suitable items for them. Secondarily, Amazon has installed very easy way of access. Customers always enjoy the most personalized service by ‘One-click Shopping’ and paying one annual fee would cover the shipping fee for a year. Amazon also comes up with an item, Kindle, which could benefit both selling and buying customers on the website. Customers could easily purchase e-book and download it on their Kindles and the book sellers could make more profit by selling e-book through Amazon. Amazon is not staying where it currently is but it continuously is trying to move further in terms of customer...
Words: 274 - Pages: 2
...AMAZON© By Nadeem Virk Marketing Techniques Spring 2015 Dr. Allen Amazon In today’s world, there are hundreds, if not thousands, of valued global brands. These brands are struggling every day to maintain their value in the market place in order to stay ahead of their competition as well as earn profits for their investors. There are many methods which different brands apply in order to appeal more to consumers, as well as investors. Sometimes these brands choose to focus on being diverse, sometimes they want to make the highest profit, and some of these brands invest to earn profit in the long-run even if there is some loss in the short-run. At the end though, almost all of these brands depend on customers, who’s every day choice and behavior give value to the brands. Some of these methods work, and some don’t bring the expected outcome. These different methods affects these brands (companies) in ways that either increase the brand’s value or decrease it. On the other hand, some brands struggle and neither loose or gain any market value or market share and end up just maintain their prior position. It may seem easy to maintain a brand’s value, but even maintaining the value of a specific brand is very difficult in today’s competitive market. One of the most interesting brands of today’s age is Amazon. According to Interbrand, in 2014, Amazon ranked as the fifteenth highest valued company in the whole world. The value of the Amazon brand is USD $29.478 Billion, which was...
Words: 2002 - Pages: 9
...Deforestation Of the Amazon This assignment will be focused on the topic of deforestation in Amazon (mainly located in Brazil). For this topic I picked three articles from newspapers. I decided to choose this topic because I have always been interested in the Amazon and its beauty. It’s still fascinating for me how there is people (tribes) living in the Amazon forest when I cannot picture myself without technology living in a rural environment. I’ve also been always interested in the way they live and communicate among them so the fact that we have deforestation taking place there makes me so sad because it is something so beautiful and unique. The first article is mainly about the consequences of deforestation of the Amazon forest in America. In this article it is stated that a complete deforestation of the Amazon could result in a reduction of twenty per cent of rain and snowfall. This doesn’t sound scary but the real problem is that according to the Princeton University (located in New Jersey) who came up with this report, it also means that this reduction would lead to water and food shortages and great risk of forest fires. The reason behind these shortages is because due to the change that would happen in the snowpack of Sierra Nevada which is the main source of irrigation for California’s Central Valley which consequently would affect the food/water supply not only for California but the entire United States. Also, a naked Amazon could contribute to a weather cycle...
Words: 1924 - Pages: 8
...management issues; and the relationship amongst Amazon®’s data, information, and knowledge. Amazon is a one of the most amazing Internet sellers of used and new books that have been competitive with Borders. Amazon.com gives and present discounted books at different prices, but with true understanding of the seller and customer. The one company to have the largest product information databases in the world is Amazon. Amazon database contains more than thousands of customers, sellers, products and orders, which can be in the millions. The data of Amazon contains data information of payment transactions and type, browsing histories, and referrers. Most of the products that Amazon contains would be the price information from sellers, review, and the ranking. Customers and consumers uses the database of Amazon to read reviews to exam products, compare prices and use research tools to purchase products from the website. Issues with Amazon can occur with data management issue with using different versions of the product (Milliot 2003). . I notice that Amazon does give he or she a chance to review books online before making a purchase and also allow them to read reviews. Amazon sells various editions of books from textbooks to novels. Amazon’s data are the effects of any transactions in inventory, sale transactions, and information about the seller and about the buyer. Most consumers compare Ebay and Amazon, making them almost competitive of how the database...
Words: 376 - Pages: 2
...Amazon has developed a strategy to fully utulize their resources to effeciently make a profitable use of their technological resources. Amazon has an incredibly large data base infrastructure which is used to store information for all of Amazons transactions and their customers’ personal and finnancial information. Though Amazon is a leading online retailer with thousands of transactions occuring on a weekly basis, only ten percent of Amazons data base processing capacity is used at one time. Given Amazons finance struggles in their profit area Amazon decided to use the remaining available space in their infrastructure to service other companies who were in need of data storage and technical structure. The benefit of Amazons data base service to businesses is that they can save the time and effort of building their own server and storage network by using Amazons infrastructure. It is also relatively cheaper to use Amazons service than to try to set up your own server. The three services offered are the (S3) a simple storage service, the (EC2) an elastic compute cloud and the mechanical turk. The (S3) uses servers and hard drive space to store company information as well as raw data for 15 cents per gigabyte. This system is also used as a back up storage for company information. The (EC2) is a system designed for computing and processing information. The service of the (EC2) cost 10 cents per hour for the use of one basic server.Finally is the service of the mechanical turk...
Words: 400 - Pages: 2
