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Amazon Case - Bus 173C Prof Steven Bennet Mar 30 2009...

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Bus 173C Prof. Steven Bennet Mar. 30, 2009 Amazon.com Case The goal of Amazon.com was to become a biggest online book store. The business model for Amazon.com is to have the largest titles of books available for the readers at one location, online. Amazon.com’s plan was to catch the rapidly growing online commerce market. Amazon.com saw the current problem of fragmented book publishing industry. And they wanted to help connect the publishers distribute their books to the readers faster and more conveniently. The business model of Amazon.com was very different from the business model of Barnes & Noble or Borders. The business model for Barnes & Noble or Borders was to open as many stores and possible to distribute books from selected publishers. But the business model of Amazon.com was to make available and distribute all books from all publishers to the readers in one location, online. This business model would solve the problem of current largest book stores such as Barnes & Noble or Borders of mere 10% - 11% market representation of publishers. Also Amazon.com’s business model will take away the limit of book storing capacity of Barnes & Noble or Borders. The cost will drop dramatically because there is no need for big stores all over the country, and no warehouse maintenances. Amazon.com made sure that with all these new ideas one thing stay the same, the personal customer service.
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I would value Amazon.com highly valuable. As their business model shows, they
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