Amazon Case

Case5.1 Amazon.com9

Question1

How would you contrast Amazon's business design with that of Barnes & Noble before Barnes & Noble went online?From a customer's perspective, what are the advantages and disadvantages of each design?

Answer1

Barnes & Noble is a traditional style library and Amazon.com is in another league. Amazon.com is fast accurant trusted with a lot to offer. Barnes & Noble is for the folks who love the smell of books.

With over 40 product categories ranging from books and DVDs to pet food to health and beauty products, there is something for just about everyone on Amazon.com. The site contains your browsing history, which can be either good or bad depending on who's looking over your shoulder when you next log in. Amazon offers 1-click check out once you set up an account, and also offers incentives to consumers who use Amazon's own credit card. Amazon provides plenty of graphics of book and DVD covers, so even if you can't remember the name of the item, you might be able to recognize it from its picture. Amazon also offers a simple order tracking option called Where's My Stuff.

Barnes & Noble offers a narrower range of products, mainly books, DVDs, and vaguely educational toys. Books are new and used mass market, as well as new and used textbooks. Barnes & Noble also offers incentives for customers to use its own credit card and to join its membership program in exchange for discounts. Shipping is free on most orders over $25. Payment is via Paypal.

Question2

Will Amazon continue to be successful against "click-and-mortar" competitors, such as Barnes & Noble?

Answer2

Question3

Is Amazon.com a model for the future of retailing?

Answer3

E-commerce was invented by Benjamin Franklin in 1744, but they called it Mail Order back then. The only difference between Franklin's catalog (which sold books) and Amazon is Amazon is done by computers and Franklin used mailed letters.

I remember when e-commerce first got big. All I heard was, "this is going to kill stores. No one will go to stores. No one will go to the mall. They'll just sit at home and order stuff." Wrong. Shopping is a social activity; there is a massive difference between sitting at home clicking around and going to the mall with your friends to have a cappucino, get your nails done and look at cute clothes. Or, in the case of guys, to go to the tool department at Sears and the humidor at the cigar store.

Amazon and the other e-merchants have a place. It's good for comparing a LOT of items in a really