David Aouate
MGT 401
Dr. Meziaz
Case 1: Amazon.com
I)
At first, in 1996, Amazon and Barnes & Noble had issues concerning the saying that Amazon was “the world’s largest bookstore” (p.3) Indeed, after the launch of its online store, Barnes & Noble sued Amazon for the impact of that phrase on customers. So in a first time, we can say that Amazon was a company envied by its competition.
Amazon’s entry has shaken up retail book supply chain because “bestsellers are sold at 30 to 40 percent discount and the other books at 10 percent discount.”(p.7) The C.E.O Jeff Bezos explained this fact claiming that there is a difference in the inventory made by Amazon (150 times a year), and the regular bookstores (3 to 4 times a year).
Lastly, with Amazon, customers all over the world can purchase all types of books, 24/7, at a discount price. This is something that retail book supply chain cannot afford to have because this is not their goal. Even if Barnes & Noble opened their online store, the appreciation of people in general for Amazon is growing and is functioning at an amazing scale.
II)
Amazon’s expanding into other products depended on important environment and internal factors. Indeed, Amazon is located at Seattle because according to Bezos, “physical location is very important for the success of a virtual business.” (p.2) Seattle required all the criteria that the C.E.0 needed to succeed. Plus, Microsoft is implanted in the same city, meaning that Amazon could explore and “attract some Microsoft veterans and many highly qualified executives.” (p.9) He did the same way with the elaboration of Amazon’s new products by choosing the ideal company Bezos would buy based on the firm’s philosophy and culture. Also, what is important is to know the kind of people behind the company to take over. As Bezos states, “we are looking for business athletes indoctrinated in this space and companies that have a culture that is...