Amazon Media Industry Analysis

STRATEGIC MANAGEMENT
(MBSA 1213)
Individual assignment : Amazon.com
Name: Toh Cindy

Matric No : MBS141093
Lecturer: Associate Professor Dr. MasBambangBaroto
Submission Date: 14th May 2016
Section: 02
Semester: 2015/2016 Semester 2
Table of Contents
1.0 Company Description ........................................................................................................................... 1
2.0 External Analysis .................................................................................................................................. 2
2.1 Industry Description.......................................................................................................................... 2
2.2 Vision and Mission statement Analysis ............................................................................................ 3
2.3 PEST analysis ................................................................................................................................... 4
2.4 Competitive Force............................................................................................................................. 4
2.5 Five Force ......................................................................................................................................... 7
2.6 Table of opportunities and threats ................................................................................................... 10
2.7 EFE matrix .......................................................................................................................................... 12
2.8 Group Map...................................................................................................................................... 14
2.9 Defining key success factors among the industry............................................................................ 15
2.10 Competitive Profile Matrix (CPM) ............................................................................................... 16
3.0 Internal Analysis ................................................................................................................................. 17
3.1 Table of Culture Assessment (Strength- S, Weakness- W) ............................................................. 17
3.2 Table of Management Assessment (Strength- S, Weakness- W) .................................................... 18
3.3 Table of Marketing Assessment (Strength- S, Weakness- W)......................................................... 19
3.4 Table of Operation Assessment (Strength- S, Weakness- W) ......................................................... 21
3.5 Table of R&D Assessment (Strength- S, Weakness- W) ................................................................ 21
3.6 Table of MIS Assessment (Strength- S, Weakness- W) .................................................................. 23
3.7 Table of summary for strength & weakness .................................................................................... 24
3.8 Table of Financial Assessment........................................................................................................ 25
3.8.1 Table of Financial Analysis Amazon versus B&N in 2010 (in million) (Exhibit 7 & Exhibit 1) . 27
3.9 Table of Strength ............................................................................................................................ 27
3.10 Table of Weakness ........................................................................................................................ 30
3.11 IFE matrix ..................................................................................................................................... 30
4.0 Value Chain Analysis ......................................................................................................................... 32
5.0 Strategic in Action .............................................................................................................................. 34
5.1 Amazon.com Long Term and Short Term Financial Objective ....................................................... 34
5.2 Gap Inc Long Term and Short term Strategic objectives ................................................................ 35
5.3 Corporate Level Strategy ................................................................................................................ 36

5.4Business Level Strategy ................................................................................................................... 37
6.0 SWOT Analysis .................................................................................................................................. 38
1.0 Company Description

Company Name Amazon.com, Inc.
Founder
Jeffrey P. Bezos (pg438, par5)
Headquartered
Seattle & Washington(pg438, par 2)
Owner
-no mention in the caseCEO
Jeffrey P. Bezos (pg446, exhibit 6)
Vision
-no mention in the caseMission
To be the Earth's most customer centric company, where customer can find and
discover anything they might want to buy online, and endeavor to offer
customer the lowest possible prices. (pg 440, par5)
Operation
Amazon.com recently moved its office into a new 11- building campus in the
Location
Sounth Lake Union neighborhood of Seattle (pg 445, par3)
Company
Amazon.com opened for business in July 1995 and went public in May of 1997
History
with an initial public offering of three million shares ($18 each). ( pg 439, par
2)
In 1997, the company also established long- term relationship with strategic
partners such as Yahoo !Prodigy, America Online, Excite, Alta Vista and
Netscape (pg 439, par 3)
In 1998, Amazon.com acquired Internet Movie Database (Pg439, par 3)
In 2007, device, for use in the United States in 2007. Customers download
books, magazines, and newspaper to read on Kindle, and they can store these
downloaded material on other devices such as the Ipad (pg 439, par 7)
By January 2011, Kindle book sales were greater than the company's paperback
book sales (pg 440,par1)
In 2009, Amazon announced a strategic alliance with textbook publisher
McGraw-Hill to target sales in the higher education market. McGraw-Hill
distributes hundreds of Kindles in colleges and university exposing a new
generation to wireless reading devices (pg 440, par 2)
New services are the music cloud services that were started in 2011. (pg 440,
par 3)
Product
Media product- book, E-books, kindle, music, movie
Revenue by
2010 : $17,702.42 (43 % from total sales) (Exhibit 7, pg 443)
media product
2009: $ 10,538.87 (52% from total sales) (Exhibit 7, pg 443)
(In million)
2008: $ 8241.38(58 % from total sales) (Exhibit 7, pg 443)
Amazon started its business from book sales market. E-book and kindle is considering media
product. Thus, I am assuming the revenue from media is 100 % from e-book and kindle
Operating Profit 2010: $604.58
(Loss)of media
2009:$ 486.47
by year
2008: $362.06
The operating profit by media is based on the percentage revenue of media
Page | 1
Amazon Future Plan
As Amazon deals with challenges in the e-commerce wuld and tries to

continue developing new services, products offerings, and
partnerships(pg448, par )
2.0 External Analysis
2.1 Industry Description

Name of
Media
Industry
Industry Market Amazon: Introduced the Kindle, a wireless reading device in 2007.Customer
Capabilities
download books, magazines, and newspaper to read on Kindle, and they can store
these download materials on other device (pg 439, par 7). Music cloud services
that was started in 2011. User can upload music to amazon data storage system on
the web and play them back on any PC or Apple computer. The music can also be
accessed by cell phone and tablet computer (pg 440, par 3)
Barnes & Noble: It offers stores 60,000 to 200,000 titles, and most store have
Starbucks cafe and music department that sell more than 30,000 music titles. it is
the nation's largest brick- and- mortar book seller with 1,357 total stores operating
in 50 states, including 720 Barnes & Noble superstores and 637 B&N Colleage
Booksellers on college campuses. These bookstores serve approximately four
million students and faculty ( pg441, par 3)
Borders Group: offers up to 170,000 book, music, and movie titles for sales in its
stores (pg 441, par4)
Book- A- Million: it has a wholesale and distribution division, an e-commerce
division, and an internet development and service company called net central ( Pg
442, par 10)
Industry Net
Income from
Amazon : $ 495.36 in million (based on 43% calculated)

Barnes & Noble :$ 36.64 in million (Exhibit 1, pg 441)
Page | 2
media in 2010
Borders Group: ($109.4 in million) (Exhibit 2, pg 442)

Book-A-Million : $13.8 (in million) (Exhibit 3, p4 442)
Number of Main
Players
Name of Players
Industry
Product
4
Amazon, Barnes & Noble, Borders Group, Book-A- Million
Amazon : Book seller, E-book, kindle, online Movie, online Music
Barnes & Noble : Book, online music, e-reader
Borders Group :Book, Music, movie
Book-A-Million : Book
2.2 Vision and Mission statement Analysis

2.2.1 Vision is not mentioned in the cases
2.2.2 Mission Analysis
To be the Earth's most customer centric company, where customer can find and discover
anything they might want to buy online, and endeavor to offer customer the lowest possible
prices. (pg 440, par5)
No Key Element
Mission Statement
1 Specifies the business
" where customer can find and discover anything they might
want to buy online"
2 Business in which the firm
intends to compete
3 The customer its intend to

serve
4 Technology
5 Delineates the market
position
6 Concern for the employee
7 Concern for the public image
To be the Earth's most customer centric company"

want to buy online"
"endeavor to offer customer the lowest possible prices"
want to buy online"
want to buy online"
8 Concern for growth, survival

and profitability
The Amazon mission statement stated the clear and specific for its business nature and target
customer. Amazon mission statement showed the clear intention and direction which business
that would like to compete. For example, Amazon want to be the Earth's most customer centric
company, provide anything customer want to buy through online, and offer the lowest possible
prices to customer. In addition, the Amazon mission also giving inspiration to it all stakeholders
Page | 3
by aimed to become the earth's most customer centric company. Yet, in their mission statement,
employee concern and benefit did not be included. Thus, amazon might need to improve its
human resource management for its future mission statement.
2.3 PEST analysis
2.3.1 Political, Legal , and Government
No Case Fact
1 the services customer can store it (music) in the cloud and play it
Opportunity Threat
*
anywhere." There are possible legal with this new services. Record label
manager want music services to negotiate licenses with record companies to
store and make digital available. (pg 440, par3)
2.3.2 Economic
No Case Fact
1 The portion of U.S. households connected to the Internet is expected to
increase to 80 percent in 2013 (Pg 438, par 3)
2 In the five-year period between 2010 and 2014, online sales are expected to
grow 10 percent per year (pg 438, par 3)
3 Online consumer sales will likely total $ 249 billion by the end of 2014 (pg
438, par 3)
Opportunity Threat
*
*
*
2.3.3 Social cultural

No Case Fact
Opportunity Threat
1 The increasing availability of the internet to people globally has changed the *
way consumer purchase products and the way consumer receive information
about products (pg 438, par 3)
2 The United States has more than half of the world's internet users (pg 438,
*
par 3)
3 It is expected that information gathered from the internet will influence 53
*
percent of all U.S retail purchases by 2014 ( pg 438, par 3)
4 The use of smartphone technology to comparison shop is expected to grow
*
as more consumers carry these devices. (Pg 445, par 6)
2.3.4 Technology
No Case Fact
1 no mentioned in the cases
2.4 Competitive Force
2.4.1 Table competitive force - Barnes & Noble (B&N)
Case Facts
Strengths
Barnes & Noble is most stores have Starbucks cafes (pg 441,
par 3)
Opportunity Threat
Opportunity Threat
*
Page | 4
Barnes & Noble is the nation's largest brick- and - mortar

bookseller with 1,357 total stores operating in 50 states,
including 720 Barnes & Noble superstores and 637 B&N
college Booksellers on college campuses ( pg 441, par 3)
Weakness
only 10 percent of B&N sales were made by customers online
in 2010 ( pg 441, par 3)
Capabilities The typical Barnes & Noble stores offer 60,000 to 200,000
titles (pg 441, par 3)
music departments that sells more than 30,000 music titles
( pg 441, par 3)
B&N bookstores serve approximately four million students
and faculty. (pg 441, par 3)
Opportunity college sales were more than 14 percent of B&N sales
Threats
Objective
Strategy
*
*
*
*
*
About B&N 90 stores were closed from 2007 to 2011 (pg

*
441, par 30
B&N put itself on the market to be sold, but no buyers have
*
showed interest (pg 441, par 3)
About 90 B&N stores were closed from 2007 to 2011, and the *
company expects more consolidation in the future (pg 441, par
3)
The company invests heavily in its version of the e-reader
(launched in 2009) called Nook ( pg 441, par 3)
B&N's Nook will be sold in Staples stores (pg 441, par 30
B&N 's Nook is also sold at Best buy and Wal- Mart (pg 441,
par 3)
2.4.2 Table competitive force- Borders Group

Case Facts
Strengths
Most stores also have a Seattle's Best coffee shop ( pg 441,
par 4)
In 2010, Borders had 511 Borders stores in 45 states and
Puerto Rico and 175 smaller stores with the names
Waldenbooks, Border Express, or Borders Outles. (pg 441,
par 4 )
The company also had 29 Borders airport stores in 2010 (pg
441, par 4)
Weakness
Borders unable to gain traction in the digital book market
(pg 441, par 4)
Capabilities Borders is the number two U.S bookseller and offers up to
170,000 book, music, and movie titles for sale in its stores
( Pg 441, par 4)
Opportunity Borders received $ 505 million from GE Capital for its
reorganization (pg 441 , par 4 )
*
*
*
Opportunity Threat
*
*
*
*
*
Page | 5
Threats
Objective
Strategy
...and after having three CEOs in three years, Borders filed

Chapter 11 Bankruptcy (pg 441, par 4)
Borders plans to close 226 stores in 2011 and is likely close
more. (pg 441, par 4)
through reorganization and closing of some stores, Borders
can be profitable again (pg 441, par 4)
A new Borders strategy is to stock more nonbook items such
as game and stationery, and company managers are
considering selling food items from local sources and wine in
Borders cafes. (pg 441, par 4)
...and has also negotiated rent reduction of more than $ 30
million with some landlords (pg 441, pa 4)
2.4.3 Table competitive force - Books- A- Million (BAM)

Case Facts
Strengths
BAM is currently the third- largest book retailing cahin in the
United States ( pg 442, par 1)
The company has 223 stores that are located in 22 states and
Washington, D.C. (pg 442, par 1)
BAM also has a wholesale and distribution division, ecommerce division, and an Internet development and services
company called Net Central that is located (pg 442, par 1)
Weakness
no mentioned in the cases
Capabilities BAM offers two retail stores formats: Book- A- Million
superstores with over 20,000 square feet (named Books -A Million or Book & Co. ) and traditional book stores with 3,500
to 4,000 square feet (called Bookland). (pg 442, par 1)
Opportunity no mentioned in the cases
Threats
BAM suffered a 7.5 percent reduction in sales in years from
2007 through 2010 (pg 442, par 1)
Objective
Strategy
*
*
*
*
Opportunity
Threat
*
*
*
Based on the analysis above, the company is facing competition from Barnes & Norble, Border
Group, Books-A- Million . Most of these companies pose a threat to Amazon. About 21
different threats were facing by Amazon from its competitors.
Page | 6
2.5 Five Force

The following 5 forces are indicating the forces from the media industry. There are few
competitors in the stated industry including Barnes & Noble, Borders Group, & Book- AMillion.
Companies
Products
Amazon
Book \, E-book, kindle, online Movie, online Music
Barnes & Nobble
Book, online music, e-reader
Borders Group
Book, Music, movie
Book-A-Million
Book
2.5.1 Table of rivalry among competing firms
COMPETITIVE FORCE
STRONG MODERATE WEAK
*
NO CASE FACT
1 Barnes & Noble is most stores have Starbucks cafes (pg
441, par 3)
2 Barnes & Noble is the nation's largest brick- and - mortar
*
bookseller with 1,357 total stores operating in 50 states,
including 720 Barnes & Noble superstores and 637 B&N
college Booksellers on college campuses ( pg 441, par 3)
3 only 10 percent of B&N sales were made by customers
online in 2010 ( pg 441, par 3)
4 The typical Barnes & Noble stores offer 60,000 to 200,000
titles (pg 441, par 3)
5 B&N music departments that sells more than 30,000 music
titles ( pg 441, par 3)
6 B&N bookstores serve approximately four million students
and faculty. (pg 441, par 3)
7 College sales were more than 14 percent of B&N sales
8 About B&N 90 stores were closed from 2007 to 2011 (pg
441, par 30
9 B&N put itself on the market to be sold, but no buyers
have showed interest (pg 441, par 3)
10 About 90 B&N stores were closed from 2007 to 2011, and
the company expects more consolidation in the future (pg
441, par 3)
11 The company invests heavily in its version of the e-reader
12 B&N's Nook will be sold in Staples stores (pg 441, par
30
13 B&N 's Nook is also sold at Best buy and Wal- Mart (pg
*
441, par 3)
14 Most Borders stores also have a Seattle's Best coffee shop
*
( pg 441, par 4)
*
*
*
*
*
*
*
*
*
*
Page | 7
15 In 2010, Borders had 511 Borders stores in 45 states and

Puerto Rico and 175 smaller stores with the names
Waldenbooks, Border Express, or Borders Outlets. (pg 441,
par 4 )
16 The company also had 29 Borders airport stores in 2010 (pg
441, par 4)
17 Borders unable to gain traction in the digital book market
(pg 441, par 4)
18 Borders is the number two U.S bookseller and offers up to
170,000 book, music, and movie titles for sale in its stores
( Pg 441, par 4)
19 Borders received $ 505 million from GE Capital for its
20 ...and after having three CEOs in three years, Borders filed
Chapter 11 Bankruptcy (pg 441, par 4)
21 Borders plans to close 226 stores in 2011 and is likely close
more. (pg 441, par 4)
22 through reorganization and closing of some stores, Borders
can be profitable again (pg 441, par 4)
23 A new Borders strategy is to stock more nonbook items
such as game and stationery, and company managers are
considering selling food items from local sources and wine
in Borders cafes. (pg 441, par 4)
24 ...and has also negotiated rent reduction of more than $ 30
million with some landlords (pg 441, pa 4)
25 BAM is currently the third- largest book retailing chain in
the United States ( pg 442, par 1)
26 The company has 223 stores that are located in 22 states
and Washington, D.C. (pg 442, par 1)
27 BAM also has a wholesale and distribution division, ecommerce division, and an Internet development and
services company called Net Central that is located (pg
442, par 1)
28 BAM offers two retail stores formats: Book- A- Million
superstores with over 20,000 square feet (named Books -A Million or Book & Co. ) and traditional book stores with
3,500 to 4,000 square feet (called Bookland). (pg 442, par
1)
29 BAM suffered a 7.5 percent reduction in sales in years from
2007 through 2010 (pg 442, par 1)
30 Amazon introduced the Kindle, a wireless reading device
in 2007.Customer download books, magazines, and
newspaper to read on Kindle, and they can store these
download materials on other device (pg 439, par 7).
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Page | 8
31 Amazons music cloud services that was started in 2011.

User can upload music to amazon data storage system on
the web and play them back on any PC or Apple computer.
The music can also be accessed by cell phone and tablet
computer (pg 440,par 3)
33 Amazons two most recent services launched in 2011 are its

controversial cloud technology that allows customers to
stores and access music and its entry into the Netflix world
of movie streaming (pg 438, pg 2)
2.5.2 Table of new entrant

COMPETITIVE FORCE
NO CASE FACT
1 Internationally, companies are being founded based on
business models similar to that of Amazon (pg 440 par 7)
STRONG
MODERATE
WEAK
2 Researchers sight consumers' inherent trust in a brick- and
mortar physical presence as an advantage hybrid retailers

have over pure e-tailers (pg 440, par 6)
3 Beirut based neelwafurat.com was launched in 1998 and
sells books. Music, and DVDs to the Middle Eastern world
(pg 440, par 7)
2.5.3 Table of substitute pressure

NO CASE FACT
1 Download services competitors include Apple computer,
Google.com, and other DVD rental services such as Netflix
and Blockbuster that provide video downloading. (pg 441,
par 2)
2 Barnes & Noble invest heavily in its version of the ereader (pg 441, par3)
3 Competed with Nook and Apple's Ipad (pg 441, par 3)
COMPETITIVE FORCE
STRONG MODERATE
*
WEAK
*
*
2.5.4 Table of supplier pressure

COMPETITIVE FORCE
NO CASE FACT
STRONG MODERATE WEAK
1 There is not stated in the case
Page | 9
2.5.5 Table of consumer/customer pressure

COMPETITIVE FORCE
NO CASE FACT
STRONG
MODERATE
WEAK
STRONG
8
2
1
MODERATE
11
1
1
WEAK
10
11
13
11
1 There is not stated in the case
2.5.6 Table of five forces table

NO CASE FACT
1
RIVALRY AMONG COMPETING FIRMS
2
POTENTIAL ENTRY OF COMPETITORS
3
SUBSTITUDE PRODUCRS
4
BARGAIN POWER OF SUPPLIER
5
BARGAIN POWER OF BUYERS
TOTAL
Based on the five forces table, rivalry among competing firms, threat of new entry, and threat
substitute products are the actual competitive pressure faced by Amazon. The major forces are
actually coming from the rivalry among competitors. The competitive pressure from rivalry
considers as strong pressure towards to the Amazon is about 8 factors, and there are also 11
moderate factors and 5 weak factors was contribute to the competitive pressure for Amazon. In
addition, potential new entry was also giving competitive pressure to Amazon as well. This
might due to the fact that globalizations stimulate the e -commerce media industry. There are two
strong factors and one factors of competitive pressure coming from the potential new entry.
Furthermore, due to the technology advance, customer having opportunity to get same product
function with difference brand. The customer demand for the 3C product causes the competitor
having intention to product the similar product in market in order to gain market share. Thus,
substitute completive pressure is contribute about 1 strong factor, 1 moderate factor and 1 weak
factor.
Priority
2
PEST
2.6 Table of opportunities and threats

2.6.1 Table of Opportunity
No
Case Fact
1
The portion of U.S. households connected to the Internet is expected to
increase to 80 percent in 2013 (Pg 438, par 3)
2
In the five-year period between 2010 and 2014, online sales are expected to
grow 10 percent per year (pg 438, par 3)
3
Online consumer sales will likely total $ 249 billion by the end of 2014 (pg
438, par 3)
4
The increasing availability of the internet to people globally has changed the
way consumer purchase products and the way consumer receive information
about products (pg 438, par 3)
5
The United States has more than half of the world's internet users (pg 438,
Page | 10
1
12
3
6
7
8
Competitive Analysis
par 3)
It is expected that information gathered from the internet will influence 53
percent of all U.S retail purchases by 2014 ( pg 438, par 3)
The use of smartphone technology to comparison shop is expected to grow as
more consumers carry these devices. (Pg 445, par 6)
only 10 percent of B&N sales were made by customers online in 2010 ( pg
441, par 3)
About B&N 90 stores were closed from 2007 to 2011 (pg 441, par 30
6
4
10
9
10
B&N put itself on the market to be sold, but no buyers have showed interest
(pg 441, par 3)
14
11
About 90 B&N stores were closed from 2007 to 2011, and the company
expects more consolidation in the future (pg 441, par 3)
Borders unable to gain traction in the digital book market (pg 441, par 4)
...and after having three CEOs in three years, Borders filed Chapter 11
Bankruptcy (pg 441, par 4)
Borders plans to close 226 stores in 2011 and is likely close more. (pg 441,
par 4)
BAM suffered a 7.5 percent reduction in sales in years from 2007 through
2010 (pg 442, par 1)
13
12
13
14
15
8
15
11
7
2.6.2 Table of Threat
PEST
No
1
2
3
4
5
6
Competitive
Analysis
7
8
9
10
11
Case Fact
the services customer can store it (music) in the cloud and play it
anywhere." There are possible legal with this new services. Record
label manager want music services to negotiate licenses with record
companies to store and make digital available. (pg 440, par3)
Barnes & Novble is most stores have Starbucks cafes (pg 441, par 3)
Barnes & Noble is the nation's largest brick- and - mortar bookseller
with 1,357 total stores operating in 50 states, including 720 Barnes &
Noble superstores and 637 B&N college Booksellers on college
campuses ( pg 441, par 3)
The typical Barnes & Noble stores offer 60,000 to 200,000 titles (pg
441, par 3)
music departments that sells more than 30,000 music titles ( pg 441, par
3)
B&N bookstores serve approximately four million students and faculty.
(pg 441, par 3)
The company invests heavily in its version of the e-reader (launched in
2009) called Nook ( pg 441, par 3)
B&N's Nook will be sold in Staples stores (pg 441, par 30
B&N 's Nook is also sold at Best buy and Wal- Mart (pg 441, par 3)
Most stores also have a Seattle's Best coffee shop ( pg 441, par 4)
In 2010, Borders had 511 Borders stores in 45 states and Puerto Rico
and 175 smaller stores with the names Waldenbooks, Border Express,
Priority
8
1
16
20
21
7
6
15
9
2
13
Page | 11
12
13
14
15
16
17
18
19
20
21
or Borders Outlets. (pg 441, par 4 )

The company also had 29 Borders airport stores in 2010 (pg 441, par 4)
Borders is the number two U.S bookseller and offers up to 170,000
book, music, and movie titles for sale in its stores ( Pg 441, par 4)
Borders received $ 505 million from GE Capital for its
through reorganization and closing of some stores, Borders can be
profitable again (pg 441, par 4)
A new Borders strategy is to stock more nonbook items such as game
and stationery, and company managers are considering selling food
items from local sources and wine in Borders cafes. (pg 441, par 4)
...and has also negotiated rent reduction of more than $ 30 million with
some landlords (pg 441, pa 4)
BAM is currently the third- largest book retailing chain in the United
States ( pg 442, par 1)
The company has 223 stores that are located in 22 states and
Washington, D.C. (pg 442, par 1)
BAM also has a wholesale and distribution division, e-commerce
division, and an Internet development and services company called Net
Central that is located (pg 442, par 1)
BAM offers two retail stores formats: Book- A- Million superstores
with over 20,000 square feet (named Books -A - Million or Book &
Co. ) and traditional book stores with 3,500 to 4,000 square feet (called
Bookland). (pg 442, par 1)
2.7 EFE matrix

No Cases Fact
Opportunity
2 In the five-year period between 2010 and 2014, online sales are
expected to grow 10 percent per year (pg 438, par 3)
1 The portion of U.S. households connected to the Internet is
expected to increase to 80 percent in 2013 (Pg 438, par 3)
4 The increasing availability of the internet to people globally has
changed the way consumer purchase products and the way
consumer receive information about products (pg 438, par 3)
3
10
17
18
4
19
12
14
5
11
Weight Rate
Score
0.15
0.6
0.15
0.6
0.1
0.4
7 The use of smartphone technology to comparison shop is

expected to grow as more consumers carry these devices. (Pg
445, par 6)
0.05
0.15
5 The United States has more than half of the world's internet users
(pg 438, par 3)
6 It is expected that information gathered from the internet will
influence 53 percent of all U.S retail purchases by 2014 ( pg 438,
par 3)
0.03
0.12
0.03
0.09
Page | 12
15 BAM suffered a 7.5 percent reduction in sales in years from 2007

through 2010 (pg 442, par 1)
12 Borders unable to gain traction in the digital book market (pg
441, par 4)
9 About B&N 90 stores were closed from 2007 to 2011 (pg 441,
par 30
8 only 10 percent of B&N sales were made by customers online in
2010 ( pg 441, par 3)
Threat
2 Barnes & Novble is most stores have Starbucks cafes (pg 441,
par 3)
10 Most stores also have a Seattle's Best coffee shop ( pg 441, par 4)
0.025
0.025
0.025
0.075
0.02
0.06
0.02
0.08
0.1
0.1
0.1
0.1
12 The company also had 29 Borders airport stores in 2010 (pg 441,
par 4)
16 A new Borders strategy is to stock more nonbook items such as
game and stationery, and company managers are considering
selling food items from local sources and wine in Borders cafes.
(pg 441, par 4)
0.05
0.05
0.05
0.2
20 BAM also has a wholesale and distribution division, e-commerce

division, and an Internet development and services company
called Net Central that is located (pg 442, par 1)
7 The company invests heavily in its version of the e-reader
6 B&N bookstores serve approximately four million students and
faculty. (pg 441, par 3)
1 the services customer can store it (music) in the cloud and
play it anywhere." There are possible legal with this new
services. Record label manager want music services to negotiate
licenses with record companies to store and make digital
available. (pg 440, par3)
0.025
0.1
0.025
0.1
0.02
0.08
0.015
0.015
9 B&N 's Nook is also sold at Best buy and Wal- Mart (pg 441, par
0.01
1
0.01
3)
13 Borders is the number two U.S bookseller and offers up to
0.01
2
0.01
170,000 book, music, and movie titles for sale in its stores ( Pg
441, par 4)
TOTAL
1.00
2.965
According to the External Factor Evaluation (EFE) Matrix, Amazon is in a good position in the
industry. However, the company is facing various threats from the industry which they have to
consider in order minimizing the threats caused by the competitors because they are contributing
the most number of threats to Amazon. From the table result (2.965> 2.5), it was believed that
Amazon has ability to exploit its opportunities and suppress the threat that face by the.
Page | 13
2.8 Group Map

Company
Number of Media
Products (X-axis)
Amazon
4 products (Book,
Movie, Kindle, and
Music)
Barnes & 3 products (Book,
Noble
music, and e-reader
(Nook))
Borders
3 products (Book,
music, and Movie
title)
BookA- 1 product (Book)
Million
Global Expansion
(Y-axis)
throughout the United States, China, France,
Germany, India, Ireland, Japan, Luxembourg, and
the United Kingdom
operating in United States 50 states
Revenue
In Million
$14,707.72
United States in 45 states and Puerto Rico
$ 2,791.1
United States in 22 states and Washington, DC
$50.8
$5810.56
2.8.1 Strategic Group Map among competitor in apparel industry
In the Group Map of media industry, the size of the circles indicates the revenue, the X-axis is
indicating the media products that launched by company and the global expansion is represent
for Y axis. The above map shows that B&N and Borders are close competitors for Amazon.
Based on the group map comparison, B&N is main close competitor to Amazon in term of
number of media products and global expansion. Yet, Amazon revenue was showed better than
B&N.
Page | 14
2.9 Defining key success factors among the industry

Factors Company
Case Facts
Distribut Amazon
Amazon.com recently moved its offices into a new 11-building campus in
ion
the South Lake Union neighbourhood of Seattle (pg 445, par 3)
Channel
Other facilities such as fulfilment and warehouse centres and customer
service offices are located throughout the United States.. (pg 445, par 3)
The company leases a corporate office, fulfilment and warehouse
operations, customer service, and other facilities outside of United States.
(pg 445, par 3)
The international offices are primarily located in China, France, Germany,
India, Ireland, Japan, Luxembourg, and the United Kingdom. (pg 445, par
3)
Thirteen new distribution centers were opened during 2010, bringing the
total to 52 distribution centers (pg 445, par 3)
Fulfilment capacity was expanded in 2006 to 12 million square feet, and by
the end of 2010, capacity was 26.1 million square feet (pg 445, par 3)
Product
Variety
Global
Expansi
Barnes &
Noble
Barnes & Noble is the nation's largest brick-and-mortar bookseller with

1,357 total stores operating in 50 states (pg 441, par 3)
720 Barnes & Noble Superstores and 637 B&N College Booksellers on
college campuses (pg 441, par 3)
Nook will be sold in Staples stores (pg 441, par 3)
Nook is also sold ar Best Buy and Wal-Mart (pg 441, par 3)
Borders
Group
the company had 511 Borders stores in 45 states and Puerto Rico, and 175
smaller stores with names Waldenbook, Border Express, or Border Outlet
(pg 441, par 4)
The company also had 29 Borders airport stores in 2010 (pg 441, par 4)
Book-AMillion
The company has 223 stores that are located in 22 states and Washington,
DC (pg 442, par 1)
It has a wholesale and distribution division, an e-commerce division, and
an Internet Development and services company called Net Central that is
located in Nashville, Tennesses (pg 442, par 1)
Book, Movie, Kindle, and Music
Book, music, and e-reader (Nook)
Amazon
Barnes &
Noble
Borders
Group
Book-AMillion
Amazon
Book, music, and Movie title

Book
Other facilities such as fulfilment and warehouse centers and customer
service offices are located throughout the United States.. (pg 445, par 3)
Page | 15
on
The company leases a corporate office, fulfillment and warehouse

operations, customer service, and other facilities outside of United States.
(pg 445, par 3)
Barnes &
Noble
Borders
Group
Financia
l
position
in 2010
(in
Million)
Book-AMillion
Amazon
Barnes &
Noble
Borders
Group
Book- AMillion
The international offices are primarily located in China, France, Germany,

India, Ireland, Japan, Luxembourg, and the United Kindom. (pg 445, par 3)
Barnes & Noble is the nation's largest brick-and-mortar bookseller with
1,357 total stores operating in 50 states (pg 441, par 3)
the company had 511 Borders stores in 45 states and Puerto Rico, and 175
smaller stores with names Waldenbook, Border Express, or Border Outler
(pg 441, par 4)
The company has 223 stores that are located in 22 states and Washington,
DC (pg 442, par 1)
Annual Sales : $14,707.72 (43 % from total sales) (Exhibit 5, pg 443)
Net Income: $ 495.36 (43 % from media) (Exhibit 7, pg 447)
Annual sales : $5810.56 (Exhibit 1, pg 441)
Net Income : $36.64 (Exhibit 1, pg 441)
Annual Sales: $ 2,791.1 (Exhibit 2, pg 442)
Net income : $ (109.4) (Exhibit 2, pg 442)
Annual Sales : $50.8 ( Exhibit 3, pg 442)
Net Income: $ 13.8 (Exhibit 3, pg 442)
The key success factor is chosen based on the competitive industry. In this industry, distribution
channel, product variety, global expansion, and financial position are analyzed in order to define
as industry key successful factor among industry players.
2.10 Competitive Profile Matrix (CPM)

The Competitive Profile Matrix (CPM) identifies a firm's major competitors and their particular
strengths and weaknesses in relation to a sample firm's strategic position. The factors in a CPM
include both internal and external issues. Therefore, the ratings refer to strengths and weaknesses,
where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.
According to the defining key successful factor among industry players, I defined that
distributional channel, product variety, global expansion, and financial position would be the
critical success factors to compute the CPM.
Amazon
Critical Success
Factors
Distribution
Channel
Product Variety
Global Expansion
Financial Position
Total
Weight Rating
0.300
0.250
0.300
0.150
1.000
4.000
4.000
4.000
4.000
Score
1.200
1.000
1.200
0.600
4.000
B&N
Rating
3.000
3.500
3.500
3.000
Borders
Score
0.900
0.875
1.050
0.450
3.275
Rating
2.000
3.250
3.000
2.000
Score
0.600
0.813
0.900
0.300
BAM
Rating
2.500
2.000
2.000
2.500
2.613
Score
0.750
0.500
0.600
0.375
2.225
Page | 16
From the table results, Amazon and B&N showed more better results compare with the Border
and BAM based on critical success factors, this is due to the fact that Amazon and B&N having
major strength in those four factors. The CPM result is consistent with the result of Strategy
Group Map (SGM). Therefore, A&F can be considering as major rival that faced by Amazon.
3.0 Internal Analysis
After a series of external analysis, based on group map results and CPM, Barnes & Noble (B&N)
will be choose as the main competitor for comparison in this Internal Analysis. According to the
group map, number of products provided, global expansion and revenue of B&N was near to
Amazon. In order to remain competitiveness, B&N was qualified and should be set as a tough
competitor among the list. The media industry in e-commerce is experience rapid changing, the
customer purchase habit is difference compare to previous time. Thus, Amazon needs to be more
effectively utilize its major strength in order to suppress its competitive pressure.
3.1 Table of Culture Assessment (Strength- S, Weakness- W)
No Items
Companies within Industry
Assessed company (Amazon)
1
2
S
Competitor
( B&N)
no mentioned in the case

Rites
Ceremonia
l
Ritual
Myth
Saga
Amazon went public in May of 1997 with an

initial public offering (pg 439,par 2)
In 1998, Amazon acquired Internet Movie
Database, This was Amazon first step toward
selling video online and was a major entry into the
international market (pg 439, par 3)
Amazon became the number one video retailer
online at the end of 1998 (pg 439, par 3)
Amazon revolutionized the book selling industry

by providing sales ranking of book (pg 439,
par5)
Amazon reported in 2010 that customers were
buying more Kindle books than hardcover
books (pg 439, par 7)
the company has more than 130 million customer
accounts and more than 2 million active sellers
accounts (pg 445, par 2)
Legend
Page | 17
Story
Amazon did not make a profit until 2003 (pg 439,

par 2)
In 2009,Amazon announced a strategic alliance
with textbook publisher McGraw-Hill target sales
in the higher education market (pg 440, par 2)
Folktale
Symbol
10
Language
The Amazon logo has an arrow pointing from the

first "A" to the "Z" indicative of the wide scope of
material available from Amazon.com, everything
from A to Z. (pg 439, par 1)
11
Metaphors
12
Value
Belief
Amazon's culture is focused on serving customer

(pg 444, par 2)
Ironic that an online company that has immense
technical prowess emphasizes (pg 444, par 2)
Heroes/He
roines
Jeff Bezos has been CEO since the company was

founded in 1995 (pg 446 , par 2)
3.2 Table of Management Assessment (Strength- S, Weakness- W)

No Items
S
Competitor
( B&N)
Planning
Organizing
Company managers also focus on continuous

innovation to provide convenience for customers.
Specifically the management team wants to ensure
fast and reliable fulfilment, efficient customer
services, easy to use functionality, and a trusted
online transaction environment (pg 444, par 2)
Motivating
Staffing
Bezos has hired the best professionals he could

find. He lured executive from Wal-Mart,
Microsoft, Barnes & Noble, and Symantec to work
in area (pg 446, par 2)
Amazon.com employed approximately 33,700

people (including both full time and part- time
employees) (pg 446, par 2)
Page | 18
The company hires independent contractors and

temporary worker to supplement its workforce,
particularly during the holiday season (pg 446, par
2)
None of the company's employee are represented

by Union (pg 446, par 2)
Amazon's customer never talks with a company

employee. But when a problem develops,
Amazon's employee get involve. (pg 444, par 2)
Controlling no mentioned in the case
3.3 Table of Marketing Assessment (Strength- S, Weakness- W)

No Items
S
Competitor ( B&N)
1
Products/
The company's two most recent
*
Services
services launched in 2011 are its
controversial cloud technology that
allows customers to store and
access music and its entry into the
Netflix world of movie streaming
(Pg 438, par2)
book selling in particular B&N store offers 60,000 to
(pg438,par 2)
200,000 titles and most stores
have Starbucks cafes. (pg 441,
par 3)
This was Amazon's first step *
*
toward selling video online(pg
439, par 3)
Amazon introduced the Kiddle, a The company invests heavily in
wireless reading device.. (pg 439, its version of the e-reader
par 7)
(launched in 2009) , called Nook
(pg 441, pg 3)
Customer
download
books,
*
magazines, and newspaper to read
on Kindle (pg 439, par 7)
Shop the web, a services that linked
*
other retailers to Amazon sites.. (pg
439, par 3)
Music cloud services (pg 440, par B&N music departments that
2)
sell more than 30,000 music
titles (pg 441, pg 3)
Page | 19
A fee-based membership program

called Amazon primeallowed
members to received express twoshipping for
free without a
minimum purchase requirement
( pg 445, par 2)
Excellent customer services is an
essential component of Amazon
( pg 444, par 1)
Release of an "app" for the iPhone
and development of a subscription
for TV viewing. IPhone application
that allows users to scan a bar code
of products in a retail stores (pg
445, par 6)
Most Kindle Books cost between
$9.99, and 12.99, but other books
are much less expensive (less than
$5, and some are free) ( pg 439, par
7)
Amazon uses e-mail campaigns,
portal advertising, and sponsored
searches as their primary means of
advertising (pg444, par 1 )
Amazon also markets its products

through their Associates Program...
(pg 444, par 1)
Amazon pays commission to
participants in the program for
customer referrals that results in
sales ( pg 444, par 1)
Place/
Amazon's continues to change the
distribution landscape of online selling in
general and book selling in
particular (pg 438, par 2)
Price
Promotion
Other facilities such as fulfilment

and
warehouse
centres
and
customer services offices are
located throughout the United
States (pg 445, par 3)
B&N is the nation's largest brick

-and- mortar bookseller with
1,357 total stores operating in
50 states, including 720 B&N
superstores and 637 B&N
college Booksellers on college
campuses. (pg 441, par 3)
Nook will be sold in Stable

stores. Nook is also sold at Best
Buy and Wal-Mart (pg 441, par
3)
Page | 20
The company leases a corporate

office, fulfilment and warehouse
operation, customer services, and
other facilities outside of the United
states (pg 445, par 3)
The international office are

primarily located in China, France,
Germany, India, Ireland, Japan,
Luxembourg, and the United
Kingdom (pg 445, par 3)
Thirteen new distribution centres

were opened during 2010, bringing
the total to 52 distribution centres
(pg 445, par 3)
By the end of 2010, capacity was
26.1 million square feet (pg 445,
par 3)
3.4 Table of Operation Assessment (Strength- S, Weakness- W)

No Items
Competitor ( B&N)
1
Process
2
Capacity
Fulfilment capacity was expanded in 2006 to 12
million square feet, by the end of 2010, capacity
was 26.1 million square feet (pg 445, par 3)
3
4
Inventory
Workforce
Quality

The company hires independent contractors and
temporary workers to supplement its workforce,
particularly during the holiday season, when
35% to 40% of Amazon's annual revenue is sold
(pg 446, par 2)
3.5 Table of R&D Assessment (Strength- S, Weakness- W)

N Items
S
o
Competitor ( B&N)
1 R&D Facility
Amazon has its own proprietary technology
*
and licenses technology from other
companies (pg 445, par 4)
Page | 21
2
3
Outsourcing
R&D
R&D Personnel amazon.com has been a pioneer in its
Qualification
website design, testing, and optimization
and has excelled in the use of technology to
personalize the customers shopping
experiences (pg 445, par 4)
The company has a history of providing
secure transaction, being reliable and
efficient in the fulfilment of orders... (pg
445, 4)
Effectiveness
Amazon invest in several areas of
R&D Resource technology, including digital initiatives,
Allocation
sellers platforms, and web services (pg 445,
par 4)
focus its development efforts on
innovation by creating and enhancing its
proprietary software and by licensing or
acquiring
commerciallydeveloped
technology for other application when it is
needed (pg 445, par 4)
MIS
These computer application are needed for
such activities as fulfilment, customer
services operation, order tracking, managing
inventory, ensuring proper shipment of
orders, and facilitating payment transaction
(pg 445, par 4)
Amazon manager works continually to
improve the shopping experience for
customers through development of intuitive
and simple website navigation(pg 445, par
5)
R&D
Shop the Web, A services that linked other
Communication retailers to the Amazon site and allowed
with other
Amazon to act as middleman (pg 439, par
3)
connecting potential buyers with
information from peers related to a specific
product (pg 445, par 5)
The Amazon.com website provides the kind
of shopping experience customers relied on
year ago when business owners knew their
customers preferences (pg 445, par 5)
Page | 22
The
Amazon introduced the Kiddle, a wireless
Technology of reading device.. (pg 439, par 7)
the
present
product
Release of an "app" for the iPhone and
development of a subscription for TV
viewing. IPhone application that allows
users to scan a bar code of products in a
retail stores (pg 445, par 6)
3.6 Table of MIS Assessment (Strength- S, Weakness- W)

No Items
1

No mentioned in the cases
Use the
information
system to make
decision
CIO/ Director H. Brian Valentine (Senior Vice President
of MIS
E-commerce Platform)
Andrew R. Jasy ( Senior Vice President
Webs Services )
Data in the Amazon also offer customer reviews gift
information
guide, Amazon provides a best gift list
system update during the holiday season that includes the
regularly
company most wished for items, favourite
gift products .(pg 445, par 1)
S
Competitor ( B&N)
*
*
*
providing sales rankings of books that were

previously guarded by publishers and
providing readers' comments to a wide
audience (pg 439, par 5)
Firm
Management team want to ensure fast and
contribute
reliable fulfilment, efficient customer
input to the services, easy to use functionality, and a
information
trusted online transaction environment. (Pg
system
444, par 1)
Strategists of Company manager also focus on continuous
the firm in the innovation to provide convenience for
information
customer (pg 444, par 3)
systems
Information
Web pages tailored to individual customer
system
user- preferences (pg 445, par 1)
friendly
Page | 23
10
All users of the

information
system
understand the
competitive
advantages that
information
Computer
training
workshops
Firms
information
system
continually
being improved
in content- and
userfriendliness
Conveniences such as One Click purchases,

Look Inside the Book Features, and Search
Inside the Book Feature provide an
information rich environment ( Pg 444, par
1)
Amazon manager works continually to

improve the shopping experience for
customers through development of intuitive
and simple website navigation(pg 445, par
5)
3.7 Table of summary for strength & weakness

Internal Analysis
Strengths
Weaknesses
Cultural
12
Management
6
Marketing
15
5
Operation
2
R&D
12
MIS
9
Total
56
5
After eliminating possible overlapping of Strengths & Weaknesses, below are the
summary of number of strengths & weaknesses assessed for Amazon:
Total Strengths & weaknesses for Amazon
50
4
Based on the summary table, It can be found out that Amazon is focusing to enhance its
information system also the marketing. The marketing, R&D in technology and MIS are the area
that emphasized by Amazon. Besides, Amazon is only having online platform to sell its media
products compare with its competitor B&N which having its own retail and shop, Amazon might
lose competitive advantage for customer who prefer to see the product physicality. For this part,
Amazon had to do some product insurance to build customer confident.
Page | 24
3.8 Table of Financial Assessment

This report emphasize in media product. According to the Exhibit 5, media products are
contributing about 43 % to the total sales. Thus, the financial ratio assessment will also base
on 43% to compute. Besides, the ratio is computing from the information that provided by the
exhibit 7 and exhibit 8.
Ratio
2010
2009
Better
Worse
Liquidity Ratio
Current Asset/ Current liabilities
1.3254
1.3304
(Current asset -inventory)/Current 1.0167

1.0356
liabilities
Leverage Ratio
Total debt/ total assets
Total debt/ Total shareholder equity
Long-Term debt/ Total Shareholder
equity
EBIT/ Total interest charge
0.6348
1.2576
0.1645
0.6194
0.7522
0.1048
36.0513
33.2059
10.6821
14.1690
1.8197
21.5526
11.2893
18.9992
1.7743
24.8067
16.9353
14.7138
Profitability Ratio
Gross profit/ sales
EBIT/ Sales
Net income/ Sales
Return on Asset
Return on Equity
0.2235
0.0411
0.0337
0.0613
0.1214
0.2257
0.0461
0.0368
0.0653
0.0793
Growth Ratio
Sales
Net Income
Earnings per Share
Dividend per share
14,707.72
10,538.87
495.36
387.86
1.0879
0.8772
No mentioned in the case
Activity Ratio
Sales/ Inventory
Sales/ Fixed Asset
Sales/ Total Assets
Annual
credit
sales/
Account
Receivable
Account Receivable/ (Total Credit
sales/365)
Page | 25
The overall financial performance of Amazon in 2010 was less performs compare with
previous year 2009. However, the growth ration company is showing increase trend compare
with previous. This could indicate that the net earnings of company is getting growth in the
market even though the company had lack perform in its internal management.
First, the liquidity ratio of amazon in 2010 slightly declined from 2009. Yet, the company
liquidity ratio figure still consider good (liquidity ration >1) and it was able to pay off its short
term obligation with current asset such as cash in hand. The decrease of this ratio might also due
to the company had fully utilize its resource to invest in company future plan such as music
cloud services that been launched in 2011. This indicates management of Amazon did manage
well for its current asset and resource in order to help the company further growth.
Second, Amazon finance structure became more depend from financing in 2010 compare
to the 2009. The degree of leverage increased from 2009 to 2010 about 63 % debt had been
financing from $1 dollar of asset. In addition, debt to equity showed sharply increase from 2009
to 2010, about $1 dollar of shareholder invest have to bear with $ 1.25 debts. This might lead to
the problem to the company. Yet, the company ability to pay its financing interest expenses
showed better result in 2010, this mean that the company could pay off its debt interest without
affecting company. The aggressive growth with debt could be due to the fast growing of Amazon
and heavily investment in the technology product. This investment is possible to bring better
income for company and thus to pay its debt and interest.
Third, Amazon inventory cycle showed decrease trend from 2009 to 2010. This indicated
the company the inventory was keeping in longer time in the warehouse or ineffective sales for
company. Furthermore, come to the asset utilization, Amazon is lack of fully utilizes its fixed
asset to generate sales but better utilize in total asset. Thus, several actions should be taken in
order to ensure the company could fully utilize the asset that belongs to the company. Besides,
account receivable turnover also showed less perform in 2010 about 16 days is required to
collect the payment debtor. This means the company did not proper control its debtor collection
period.
Forth, the profitability ration overall result did not showed any improvement in 2010
compare to 2009. This showed that the sales earn by the Amazon is less contribute to the
company net earnings. This showed that company expense and cost of goods sold in 2010 is
higher than 2009. In addition, the return from asset investment also declined in 2010 but the
shareholder investment in the Amazon was getting better return in 2010. The shareholder
investment return in Amazon is showed sharply increase and thus the Amazon management in
company.
Lastly, the overall growth ratio is showed better result in 2010 compare with 2009. The
revenue and net income increase in 2010 from 2010 and the earning per share also increase from
2009. This mean the Amazon performance consider in the right track and able to perform in the
market.
Page | 26
3.8.1 Table of Financial Analysis Amazon versus B&N in 2010 (in million) (Exhibit 7 &
Exhibit 1)
Amazon
B&N
Better
Worse
Leverage Ratio
Long-Term debt/ Total 0.1645
0.1048
Shareholder equity
Activity Ratio
Sales/ Total Assets
1.8197
0.4148
Gross profit/ sales

Net income/ Sales
Return on Asset
Return on Equity
0.2235
0.0337
0.0613
0.1214
0.0126
0.0063
0.0099
0.0090
Growth Ratio
Revenue ($)
Net income ($)
Earnings per Share
$14,707.72
$495.36
$1.0879
$5810.56
$36.64
$0.041
Profitability Ratio
Based on the table 3.8.1, the overall results of Amazon are actually better than its main
competitor B&N except long- term debt to equity. Due to the information lack of, some of the
ratios of B&N are unable to compute. Amazon is still better than its competitor as it can be seen
from activity ratio, profitability ratio, and growth ratio. Amazon is better to utilize its asset to
generate sales, about three times to its competitor for this ratio. Due to the online characteristic,
it was believed that Amazon able to cut down most of the expenses compare to its competitor.
Thus, the sales earn by the Amazon able to contribute more to its profit. In addition, return from
the investment asset and shareholder also showed better than its main competitor Therefore,
Amazon was having well financial position in the market.
3.9 Table of Strength
NO Case Fact
1
Amazon went public in May of 1997 with an initial public offering (pg 439,par 2)
Priority
50
In 1998, Amazon acquired Internet Movie Database, This was Amazon first step
toward selling video online and was a major entry into the international market (pg 439,
par 3)
47
Amazon became the number one video retailer online at the end of 1998 (pg 439, par 3)
46
Amazon revolutionized the book selling industry by providing sales ranking of book
(pg 439, par5)
45
Amazon reported in 2010 that customers were buying more Kindle books than
hardcover books (pg 439, par 7)
44
Page | 27
the company has more than 130 million customer accounts and more than 2 million
active sellers accounts (pg 445, par 2)
43
7
8
Amazon did not make a profit until 2003 (pg 439, par 2)
In 2009,Amazon announced a strategic alliance with textbook publisher McGraw-Hill
target sales in the higher education market (pg 440, par 2)
The Amazon logo has an arrow pointing from the first "A" to the "Z" indicative of the
wide scope of material available from Amazon.com, everything from A to Z. (pg 439,
par 1)
Amazon's culture is focused on serving customer (pg 444, par 2)
Ironic that an online company that has immense technical prowess emphasizes (pg 444,
par 2)
42
16
12
13
Jeff Bezos has been CEO since the company was founded in 1995 (pg 446 , par 2)
Company managers also focus on continuous innovation to provide convenience for
customers. Specifically the management team wants to ensure fast and reliable
fulfilment, efficient customer services, easy to use functionality, and a trusted online
transaction environment (pg 444, par 2)
38
2
14
Bezos has hired the best professionals he could find. He lured executive from WalMart, Microsoft, Barnes & Noble, and Symantec to work in area (pg 446, par 2)
Amazon.com employed approximately 33,700 people (including both full time and
part- time employees) (pg 446, par 2)
17
16
None of the company's employee are represented by Union (pg 446, par 2)
32
17
Amazon's customer never talks with a company employee. But when a problem
develops, Amazon's employee get involve. (pg 444, par 2)
33
18
19
Amazon introduced the Kiddle, a wireless reading device.. (pg 439, par 7)
Customer download books, magazines, and newspaper to read on Kindle (pg 439, par
7)
34
18
20
21
Shop the web, a services that linked other retailers to Amazon sites.. (pg 439, par 3)
The company's two most recent services launched in 2011 are its controversial cloud
technology that allows customers to store and access music and its entry into the
Netflix world of movie streaming (Pg 438, par2)
A fee-based membership program called Amazon primeallowed members to received
express two-shipping for free without a minimum purchase requirement ( pg 445, par
2)
Excellent customer services is an essential component of Amazon ( pg 444, par 1)
3
40
24
Release of an "app" for the iPhone and development of a subscription for TV viewing.
IPhone application that allows users to scan a bar code of products in a retail stores (pg
445, par 6)
25
Most Kindle Books cost between $9.99, and 12.99, but other books are much less
expensive (less than $5, and some are free) ( pg 439, par 7)
10
11
15
22
23
15
36
37
35
19
20
Page | 28
26
Amazon uses e-mail campaigns, portal advertising, and sponsored searches as their
primary means of advertising (pg444, par 1 )
21
27
28
Amazon also markets its products through their Associates Program... (pg 444, par 1)
Amazon pays commission to participants in the program for customer referrals that
results in sales ( pg 444, par 1)
22
28
29
The company leases a corporate office, fulfilment and warehouse operation, customer
services, and other facilities outside of the United states (pg 445, par 3)
29
30
The international office are primarily located in China, France, Germany, India, Ireland,
Japan, Luxembourg, and the United Kingdom (pg 445, par 3)
39
31
Thirteen new distribution centres were opened during 2010, bringing the total to 52
distribution centres (pg 445, par 3)
30
32
33
By the end of 2010, capacity was 26.1 million square feet (pg 445, par 3)
Fulfilment capacity was expanded in 2006 to 12 million square feet, by the end of 2010,
capacity was 26.1 million square feet (pg 445, par 3)
31
27
34
The company hires independent contractors and temporary workers to supplement its
workforce, particularly during the holiday season, when 35% to 40% of Amazon's
annual revenue is sold (pg 446, par 2)
Amazon has its own proprietary technology and licenses technology from other
companies (pg 445, par 4)
26
36
amazon.com has been a pioneer in its website design, testing, and optimization and has
excelled in the use of technology to personalize the customers shopping experiences
(pg 445, par 4)
37
The company has a history of providing secure transaction, being reliable and efficient
in the fulfilment of orders... (pg 445, 4)
25
38
Amazon invest in several areas of technology, including digital initiatives, sellers

platforms, and web services (pg 445, par 4)
39
focus its development efforts on innovation by creating and enhancing its proprietary
software and by licensing or acquiring commerciallydeveloped technology for other
application when it is needed (pg 445, par 4)
These computer application are needed for such activities as fulfilment, customer
services operation, order tracking, managing inventory, ensuring proper shipment of
orders, and facilitating payment transaction (pg 445, par 4)
14
41
Amazon manager works continually to improve the shopping experience for customers
through development of intuitive and simple website navigation(pg 445, par 5)
42
connecting potential buyers with information from peers related to a specific product
(pg 445, par 5)
23
43
The Amazon.com website provides the kind of shopping experience customers relied on
year ago when business owners knew their customers preferences (pg 445, par 5)
24
44
H. Brian Valentine (Senior Vice President E-commerce Platform)
48
35
40
13
Page | 29
45
46
Andrew R. Jasy ( Senior Vice President Webs Services )

Amazon also offer customer reviews gift guide, Amazon provides a best gift list
during the holiday season that includes the company most wished for items, favourite
gift products .(pg 445, par 1)
49
12
47
providing sales rankings of books that were previously guarded by publishers and
providing readers' comments to a wide audience (pg 439, par 5)
41
48
Management team want to ensure fast and reliable fulfilment, efficient customer
services, easy to use functionality, and a trusted online transaction environment. (Pg
444, par 1)
11
49
Web pages tailored to individual customer preferences (pg 445, par 1)
10
50
Conveniences such as One Click purchases, Look Inside the Book Features, and Search
Inside the Book Feature provide an information rich environment ( Pg 444, par 1)
3.10 Table of Weakness

NO Case Fact
1
Music cloud services (pg 440, par 2)
2
book selling in particular (pg438,par 2)
3
Amazon's continues to change the landscape of online selling in general and book
selling in particular (pg 438, par 2)
4
Other facilities such as fulfilment and warehouse centres and customer services
offices are located throughout the United States (pg 445, par 3)
3.11 IFE matrix
NO Case Fact
38
13
20
24
25
36
Priority
2
4
1
3
Weight Rating Score
Strength
Amazon invest in several areas of technology, including digital initiatives, 0.15
sellers platforms, and web services (pg 445, par 4)
Company managers also focus on continuous innovation to provide 0.15
convenience for customers. Specifically the management team wants to
ensure fast and reliable fulfilment, efficient customer services, easy to use
functionality, and a trusted online transaction environment (pg 444, par 2)
Shop the web, a services that linked other retailers to Amazon sites... (pg 439,
par 3)
Release of an "app" for the iPhone and development of a subscription for TV
viewing. IPhone application that allows users to scan a bar code of products
in a retail stores (pg 445, par 6)
Most Kindle Books cost between $9.99, and 12.99, but other books are much
less expensive (less than $5, and some are free) ( pg 439, par 7)
amazon.com has been a pioneer in its website design, testing, and
optimization and has excelled in the use of technology to personalize the
customers shopping experiences (pg 445, par 4)
0.6
0.6
0.1
0.4
0.05
0.2
0.05
0.2
0.025
0.1
Page | 30
35
0.02
0.08
0.02
0.06
0.02
0.06
0.015
0.045
0.15
0.15
0.125
0.25
Other facilities such as fulfilment and warehouse centres and customer 0.075
services offices are located throughout the United States (pg 445, par 3)
0.15
book selling in particular (pg438,par 2)

Total
0.05
2.945
41
50
49
3
1
Amazon has its own proprietary technology and licenses technology from
other companies (pg 445, par 4)
Amazon manager works continually to improve the shopping experience for
customers through development of intuitive and simple website navigation(pg
445, par 5)
Conveniences such as One Click purchases, Look Inside the Book Features,
and Search Inside the Book Feature provide an information rich environment
( Pg 444, par 1)
Web pages tailored to individual customer preferences (pg 445, par 1)
Weakness
Amazon's continues to change the landscape of online selling in general and
book selling in particular (pg 438, par 2)
Music cloud services (pg 440, par 2)
0.05
1.000
The Amazon IFE figure is greater than 2.5 which is about 2.945, this mean the company having
strong internal position. Amazon is having more strength factor in the analysis. With its strong
internal position, Amazon will be more capable to compete in the market with current ability and
strength. Most of the strength of Amazon is come from its marketing, R&D, and MIS, these
factors are able to help company to compete with competitor. Yet, the company still need to
some improvement in its distribution and product variety. Amazon is currently still mainly using
online to sell its media product.
Page | 31
Support Function
4.0 Value Chain Analysis

Cultural
Amazon revolutionized the book selling industry by providing sales ranking of book (pg 439, par5)
The Amazon logo has an arrow pointing from the first "A" to the "Z" indicative of the wide scope of material available
from Amazon.com, everything from A to Z. (pg 439, par 1)
Amazon's culture is focused on serving customer (pg 444, par 2)
Ironic that an online company that has immense technical prowess emphasizes (pg 444, par 2)
Management
Company managers also focus on continuous innovation to provide convenience for customers. Specifically the
management team wants to ensure fast and reliable fulfilment, efficient customer services, easy to use functionality, and a
trusted online transaction environment (pg 444, par 2)
None of the company's employee are represented by Union (pg 446, par 2)
Financial
Amazon's customer never talks with a company employee. But when a problem develops, Amaz on's employee get involve.
(pg 444, par 2)
Amazons sales reached $ 9.91 billion in the 2 nd quarter of 2011, a 51 percent increase from 2010s 2md quarter sales of
$ 6.5 billion (pg 438, par 3)
In 1998, Amazon.com acquired Internet Movie Database ( Pg 439, par 3)
In 2009, amazon announced a strategic alliance with textbook publisher McGaw-Hill to target sales in the higher education
market (pg 440, par 3)
Amazon spent $855 million fulfilment in the first quarter of 2011 (pg 448, par1).
Amazon spending that first quarter on technology and content rose to $579 million from $366 million the prior year (pg
448, par1)
Amazon is building data centers for its Amazon Web Services Business ( pg 448 par 1).
R&D and
MIS
amazon.com has been a pioneer in its website design, testing, and optimization and has excelled in the use of technology to
personalize the customers shopping experiences (pg 445, par 4)
Amazon manager works continually to improve the shopping experience for customers through development of intuitive
and simple website navigation(pg 445, par 5)
Conveniences such as One_Click purchases, Look Inside the Book Features, and Search Inside the Book Feature provide an
information rich environment ( Pg 444, par 1)
Amazon manager works continually to improve the shopping experience for customers through development of intuitive
and simple website navigation(pg 445, par 5)
Page | 32
Value Chain Activities
Supplier
R&D (technology)
Example of
Supplier in
Amazon: 26
years old
Amanda
Hocking, she
began selfpublishing her
novel and selling
them as e-book or
print on demand
books through
Amazon.com
amazon.com has been a pioneer in its

website design, testing, and
optimization and has excelled in the
use of technology to personalize the
customers shopping experiences (pg
445, par 4)
focus its development efforts on
innovation by creating and enhancing
its proprietary software and by
licensing or acquiring commerciallydeveloped technology for other
application when it is needed (pg 445,
par 4)
Amazon invest in several areas of
technology, including digital
initiatives, sellers platforms, and web
services (pg 445, par 4)
Amazon has its own proprietary

technology and licenses technology
from other companies (pg 445, par 4)
Finish Goods(product)
Marketing
(promotion/sale)
Amazon introduced the Kiddle, a Amazon uses ewireless reading device.. (pg
mail campaigns,
439, par 7)
portal advertising,
and sponsored
searches as their
primary means of
advertising (pg444,
Release of an "app" for the
par 1 )
iPhone and development of a
subscription for TV viewing.
IPhone application that allows
users to scan a bar code of
products in a retail stores (pg
445, par 6)
The company's two most recent Amazon also
services launched in 2011 are its markets its
controversial cloud technology
products through
that allows customers to store
their Associates
and access music and its entry
Program, where
into the Netflix world of movie
they contract with
streaming (Pg 438, par2)
other websites to
direct customers to
Music cloud services (pg 440,
Amazon websites
par 2)
to purchase
products (pg 444,
par 1)
This was Amazon's first step
toward selling video online(pg
439, par 3)
Distribution (place)
Amazon's continues to change the
landscape of online selling in general and
book selling in particular (pg 438, par
2)
Other facilities such as fulfilment and

warehouse centres and customer services
offices are located throughout the United
The company leases a corporate office,

fulfilment and warehouse operation,
customer services, and other facilities
outside of the United states (pg 445, par
3)
The international office are primarily

located in China, France, Germany,
India, Ireland, Japan, Luxembourg, and
the United Kingdom (pg 445, par 3)
Thirteen new distribution centers were
opened during 2010, bringing the total to
52 distribution centers (pg 445, par 3)
By the end of 2010, capacity was 26.1
million square feet (pg 445, par 3)
Page | 33
5.0 Strategic in Action

5.1 Amazon.com Long Term and Short Term Financial Objective
The related figure will be compute based on 43 % media contribution to sales.
No
Long
Term Short Term Case Facts
Objectives
Objectives
Remark:
Successful/unsuccessful
Sustainable
profit growth
Unsuccessful
Shareholder
Value
Net
Sale Year over year growth in media
growth of 5% sales declined from 52 % (2009)
annually
to 43 % (2008) (Pg 444, Exhibit
5)
Monthly
North America region media
region sale sales increased from 11 %
growth 5%
(2009)to
15
%
(2010).
International region media sales
declined from 19 % (2009)to
18 % (2010). (pg 444, Exhibit 5)
Quarter sales Amazon sales revenue in 2011
increase
$ 4.26 (43 % from media) in the
10 %
2nd quarter 2011, a 51 %
increase from 2010s 2 nd quarter
sales of $2.795 billion ( 43%
from media) ( pg 438, par 3)
Revenue
Increase in sales from 2009 to
increase
2010 of $ 10.54 billion (43 %
10
% from media) to $14.71 billion
annually
( 43% from media) (pg 446,
par3)
Net income Increase of net income of 387
increased
million (43 % from sales in
10
% 2009 and 494.5 million in 2010
annually
(27% increase) (pg 446, par 3).
Earnings per Amazon EPS increase from
share growth $ 2.04 to $ 2.58 (24 %
of 10 % increases) (pg 447, Exhibit 7)
annually
Unsuccessful
Successful
Successful
Successful
Successful
Page | 34
5.2 Gap Inc Long Term and Short term Strategic objectives
No Long
Term Short Term Case Facts
Objectives
Objectives
Remarks:
Successful/U
nsuccessful
Having
a Amazon became the number one video Successful
wider
retailer online (pg 440, pg 3)
product line Amazon reported in 2010 that customers Successful
than rivals
were buying more Kindle books than hard
cover books ( pg 440, par 7)
Having stronger
national
or
global sales and
distribution
capabilities than
rivals
Having
a Amazon announced a strategic alliance with
wider
textbook publisher McGraw-Hill to target
distribution
sales in the higher education market.
and
McGraw-Hill distributed hundreds of
capability
Kindles in colleges and universities (pg
than rival
440, par 2)
By the end of 2010, capacity was 26.1
million square feet (pg 445, par 3)
Being
the Consistently Amazon introduced to the Kindle, a wireless
recognized
getting new reading device, customer download book,
industry leader or improved magazine, and newspaper to read on Kindle
in
product products to (pg439, par 7)
innovation
market ahead Music cloud services was started in 2011( pg
and/or
of rival
440, par 3)
technological
The companys two most recent services
know-how
launched in 2011 are its controversial cloud
technology that allowed customer stores and
access music and its entry into Netflix world
of movie streaming
Develop new To ensure fast and reliable fulfilment,
marketing
efficient customer services, easy to use
strategic
functionally, and a trusted online transaction
with
environment. Convenience such as One-click
technology
purchase, Look inside the Book feature, and
Search Insides the book features provide an
information rich environment ( pg 444, par 3)
Web pages tailored to individual customer
preferences ( pg 445, par 1)
Successful
Successful
Successful
Successful
Successful
Successful
Successful
Page | 35
5.3 Corporate Level Strategy

No
Strategy
Case facts
Forward
Integration
Amazon introduced the Kindle, a wireless reading

devices.. Customer download books, magazines, and
newspaper to read on Kindle (pg 439, par 7)
Backward
Integration
Horizontal
Integration
Market
Penetration
The company also established long term relationship

with strategic partner such as Yahoo! Prodigy, America
Online, Excite, Alta Vista, and Netscape (pg 439, par 2)
Amazons manufacturing partner Quanta Computer,
expects to ship 3 million new Amazon tablet computer in
the 3rd of 2011 (pg 438, par 4)
Amazon announced a strategic alliance with text book
publisher McGraw- Hill to target sales in the higher
education market (pg 440, par 2).
Amazon also market its products through their Association

program, where they contract with other websites to direct
customer to Amazon websites to purchase products .(pg
444, par 1)
Web pages tailored to individual customer preferences
( pg 445, par 1)
To ensure fast and reliable fulfilment, efficient customer
services, easy to use functionally, and a trusted online
transaction environment. ( pg 444, par 3)
Amazon revolutionized the book selling industry by
providing sales ranking of books (pg 444, par 3)
Market
The international offices are primarily located in China,
Development
France, Germany, India, Ireland, Japan, Luxembourg, and
the United Kingdom (pg 445, par 3)
Product
Release of an "app" for the iPhone and development of a
Development
subscription for TV viewing. IPhone application that
allows users to scan a bar code of products in a retail
stores (pg 445, par 6)
Amazon managers work continually to improve the
shopping experience for customer through development of
intuitive and simple website navigation (pg 445, par 5)
Related
Amazon prime was introduced in October 2006. This
Diversification program costs $ 79 per year and allows member received
express two-day shipping for free without a minimum
purchase requirement (pg 445, par 2)
Remarks:
Successful/U
nsuccessful
Successful
Successful
Successful
Successful
Successful
Successful
Successful
Successful
Successful
Successful
Successful
Page | 36
Unrelated
Amazons new 10.1 inch Hollywood tablet may become
Diversification a major competition to Apples table computer (pg 438,
par 4)
Amazon acquired internet movie databases, a British
bases- sources of information on movie and entertainment
program (pg 439, par 3)
The companys two most recent services launched in 2011
are its controversial cloud technology that allows
customers to store and access music and its entry into
Netflix world of movie streaming (pg 438, par 2)
Electronic were introduced for sale on the company
website (pg 439, par 4)
Successful
Amazon announced the opening of the Emergency

Preparation and recovery from natural disaster and onestop shopping for tools, first aid suppliers, communication
device, and safety equipment (pg 439, par 5)
Amazon launched Grocery store The store offers more
than 1,200 brands (pg 439, par 5)
Successful
The Toy and babe store in July 2006. (pg 439, par 6)
Successful
Successful
9
10
Retrenchment
Divestiture
Music cloud service that was started in 2011 (pg 440, par
3)
11
Liquidation
5.4Business Level Strategy

Name of
No
strategy
Case facts
Cost
Most Kindle Books cost between $9.99, and 12.99, but
leadership other books are much less expensive (less than $5, and
1
Best Value
some are free) ( pg 439, par 7)
Differentiation Amazon introduced the kindle, a wireless reading device.

Customer download books, magazines, and newspaper to
read on kindle, and they can store these download material
on other devices such as the Ipad
Focus - Best
value
Successful
Successful
Successful
Successful
Remarks
Successfully
Successfully
Page | 37
6.0 SWOT Analysis

Strength
Weakness
S1:Amazon invest in several areas of technology,

including digital initiatives, sellers platforms, and web
services (pg 445, par 4)
S2: Company managers also focus on continuous
innovation to provide convenience for customers.
Specifically the management team wants to ensure fast
and reliable fulfilment, efficient customer services, easy to
use functionality, and a trusted online transaction
environment (pg 444, par 2)
S3: Shop the web, a services that linked other retailers to
Amazon sites.. (pg 439, par 3)
W1: Amazon's continues to change the

landscape of online selling in general and
book selling in particular (pg 438, par 2)
W2: Music cloud services (pg 440, par 2)
W3: Other facilities such as fulfilment and

warehouse centres and customer services
offices are located throughout the United
S4: Release of an "app" for the iPhone and development W4:book selling in particular (pg438,par
of a subscription for TV viewing. IPhone application that 2)
allows users to scan a bar code of products in a retail
stores (pg 445, par 6)
S5:Most Kindle Books cost between $9.99, and 12.99, but
other books are much less expensive (less than $5, and
some are free) ( pg 439, par 7)
S6: Amazon.com has been a pioneer in its website design,
testing, and optimization and has excelled in the use of
technology to personalize the customers shopping
experiences (pg 445, par 4)
S7: Amazon has its own proprietary technology and
licenses technology from other companies (pg 445, par 4)
S8:Amazon manager works continually to improve the
shopping experience for customers through development
of intuitive and simple website navigation(pg 445, par 5)
Page | 38
S9:Conveniences such as One Click purchases, Look

Inside the Book Features, and Search Inside the Book
Feature provide an information rich environment ( Pg
444, par 1)
S10: Web pages tailored to individual customer
preferences (pg 445, par 1)
Opportunities
O1:In the five-year period between 2010 and
2014, online sales are expected to grow 10
percent per year (pg 438, par 3)
SO Strategies
S1, S2, S6, S8, S9, S10, O1,O2,03,O5- increase the

company website reliable and convenience, and efficiency
of services in order to follow the market high usage
internet trend
O2: The portion of U.S. households connected S1, S2, S6, S8,S9, S10, O1,O2,03,O5- provide more better
to the Internet is expected to increase to 80
services and product variety to attract the customer using
percent in 2013 (Pg 438, par 3)
the website to purchase
O3: The increasing availability of the internet S1, S2, S6, S8, S9, S10, O1, O2, and 03, O5: Keep on
to people globally has changed the way
enhancing transaction service and browse experience for
consumer purchase products and the way
customer. Minimize the step of purchase by adding One
consumer receive information about products click purchase services.
(pg 438, par 3)
O4: The use of smartphone technology to
S1, S2, S6, S8,S9, S10, O1,O2,03,O5 enhance the
comparison shop is expected to grow as more function of viewing and display picture of product such
consumers carry these devices. (Pg 445, par
as demo video for the product to let customer have better
6)
understanding of the product.
O5: The United States has more than half of
S4,O4- improve the function of apps that used in the
the world's internet users (pg 438, par 3)
smartphone and provide better platform through the apps
in order to encourage the customer using apps to browse
the amazon websites
O6:It is expected that information gathered
S5, O7, O8, 09,O10 Low cost strategy need to maintain in
from the internet will influence 53 percent of
order to compete in market
all U.S retail purchases by 2014 ( pg 438, par
3)
WO strategies
W1, W3, O1, O2, O3, O5 Utilize the
booming internet opportunity to enrol the
emerging market could possible to reduce
the risk of no physical store to present stock
W2, O4, O6 through the smartphone
platform to increase Amazon exposure in
the market
Page | 39
O7:BAM suffered a 7.5 percent reduction in

sales in years from 2007 through 2010 (pg
442, par 1)
O8: Borders unable to gain traction in the
digital book market (pg 441, par 4)
O9: About B&N 90 stores were closed from
2007 to 2011 (pg 441, par 3)
O10: only 10 percent of B&N sales were
made by customers online in 2010 ( pg 441,
par 3)
Thereat
S5, O7, O8, 09, O10 Improve and maintain online

platform to cut the some of the distribution expenses in
order to reduce the price of product and maintain the
profit margin.
S3,O6 Strategic partner with more website retailer and
other retailer to offer more platform and option for
customer to make purchase
S1, O2, O3 Maintain good R&D is helping Amazon to
produce the product (kiddle) that follow the trend of
market
ST- strategies
WT- Strategies
T1 Barnes & Novble is most stores have

Starbucks cafes (pg 441, par 3)
S1, S4, T6 Keep on launching new product through

the R&D reduce the impact of short cycle of
technology product
W2, T8 getting the proper license to for the

music services
T2:Most stores also have a Seattle's Best

coffee shop ( pg 441, par 4)
S1, S2, S3, S8, S9, S10, T1, T2, T3, and T4: Amazon
services need to enhance its customer services and website
friendly user to ensure the customer can make purchase in
short time.
S5, T5, T9, 10 offering the cost efficient product
W3, T4, T5 Enhance the number of

fulfilment and warehouse in different
location
T3:The company also had 29 Borders airport

stores in 2010 (pg 441, par 4)
T4: A new Borders strategy is to stock more
nonbook items such as game and stationery,
and company managers are considering
selling food items from local sources and
wine in Borders cafes. (pg 441, par 4)
W4, T4, T6, T10, products offering need to

regular update to follow the market trend.
S2, S4, S6, T6 Taking advantage of pioneer for

technology in the market
Page | 40
T5: BAM also has a wholesale and

distribution division, e-commerce division,
and an Internet development and services
company called Net Central that is
located (pg 442, par 1)
T6: The company invests heavily in its
version of the e-reader (launched in 2009)
called Nook ( pg 441, par 3)
S1,S3, T5, T9, T10 Utilize the internet geographically

coverage to promote the product
T7: B&N bookstores serve approximately

four million students and faculty. (pg 441, par
3)
T8: the services customer can store it
(music) in the cloud and play it anywhere."
There are possible legal with this new
services. Record label manager want music
services to negotiate licenses with record
companies to store and make digital available.
(pg 440, par3)
T9:B&N 's Nook is also sold at Best buy and
Wal- Mart (pg 441, par 3)
T10: Borders is the number two U.S
bookseller and offers up to 170,000 book,
music, and movie titles for sale in its stores
( Pg 441, par 4)
Page | 41

Amazon Media Industry Analysis

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Amazon Media Industry Analysis

Uploaded by

Copyright:

Available Formats

STRATEGIC MANAGEMENT

Individual assignment : Amazon.com

Name: Toh Cindy

5.3 Corporate Level Strategy ................................................................................................................ 36

1.0 Company Description

Amazon Future Plan

As Amazon deals with challenges in the e-commerce wuld and tries to

2.0 External Analysis

2.1 Industry Description

Amazon : $ 495.36 in million (based on 43% calculated)

Borders Group: ($109.4 in million) (Exhibit 2, pg 442)

2.2 Vision and Mission statement Analysis

3 The customer its intend to

To be the Earth's most customer centric company"

8 Concern for growth, survival

2.3.3 Social cultural

Barnes & Noble is the nation's largest brick- and - mortar

About B&N 90 stores were closed from 2007 to 2011 (pg

2.4.2 Table competitive force- Borders Group

...and after having three CEOs in three years, Borders filed

2.4.3 Table competitive force - Books- A- Million (BAM)

2.5 Five Force

15 In 2010, Borders had 511 Borders stores in 45 states and

31 Amazons music cloud services that was started in 2011.

33 Amazons two most recent services launched in 2011 are its

2.5.2 Table of new entrant

business models similar to that of Amazon (pg 440 par 7)

2 Researchers sight consumers' inherent trust in a brick- and

mortar physical presence as an advantage hybrid retailers

2.5.3 Table of substitute pressure

2.5.4 Table of supplier pressure

STRONG MODERATE WEAK

1 There is not stated in the case

2.5.5 Table of consumer/customer pressure

1 There is not stated in the case

2.5.6 Table of five forces table

2.6 Table of opportunities and threats

2.6.2 Table of Threat

or Borders Outlets. (pg 441, par 4 )

2.7 EFE matrix

7 The use of smartphone technology to comparison shop is

15 BAM suffered a 7.5 percent reduction in sales in years from 2007

20 BAM also has a wholesale and distribution division, e-commerce

2.8 Group Map

United States in 45 states and Puerto Rico

United States in 22 states and Washington, DC

2.8.1 Strategic Group Map among competitor in apparel industry

2.9 Defining key success factors among the industry

Barnes & Noble is the nation's largest brick-and-mortar bookseller with

Book, music, and Movie title

The company leases a corporate office, fulfillment and warehouse

The international offices are primarily located in China, France, Germany,

2.10 Competitive Profile Matrix (CPM)

no mentioned in the case

no mentioned in the case

Amazon went public in May of 1997 with an

Amazon revolutionized the book selling industry

no mentioned in the case

Amazon did not make a profit until 2003 (pg 439,

The Amazon logo has an arrow pointing from the

no mentioned in the case

Amazon's culture is focused on serving customer

Jeff Bezos has been CEO since the company was