Essay Instructions: Amazon.com?s E-Business Model
To be successful in business, Strayer graduates must not only be capable of using various technologies, they must also know how to use the Internet to exchange information with customers and vendors, research market trends, track competitors? products and pricing, and buy and sell goods and services.
Amazon.com was founded in 1994 as an online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon competes in a vast array of markets including: books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand.
Imagine if Toys-R-Us, the largest toy retailer began selling books or if the NBA began selling hardware online. The threat of consumer confusion would rise thus bringing into question the value of the Toys-R-Us and NBA brands. Some analysts question the wisdom of Amazon.com selling products that are typically sold in the business-to-business markets. For example, you can now purchase industrial, laboratory and scientific supplies from Amazon.com.
Required:
1. Review the most current Amazon.com Annual Report at:
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual
2. Browse www.Amazon.com, www.BarnesAndNoble.com, and www.Borders.com.
3. Create a table to compare and contrast the Websites: www.Amazon.com, www.BarnesAndNoble.com, and www.Borders.com, using the following criteria: functionality, design, content, originality, professionalism and effectiveness. Include the table as an appendix to the required paper.
You are to write a four to five (4-5) page report that answers the following:
1. Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books.
2. Recommend what Amazon should do to protect its brand.
3. Recommend what Barnes & Noble and Borders should do to recapture some of their online market share.
4. At one time Dell sold computers exclusively online, now the same computers are available in retail stores (Wal-Mart for example). Discuss whether or not you foresee Amazon expanding its channel of distribution to include retail locations.