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AmazonvsBarnesNobleWORD - Amazon.com versus Barnes Noble...

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Amazon.com versus Barnes & Noble: The Battle of the Bookstores 1. Analyze both Amazon.com and Barnes & Noble using the value chain and competitive forces models. Amazon.com was founded by CEO Jeff Bezos in 1994 in his Seattle garage, he has never owned a single retail store; all its sales take place from its Internet storefront, and they totaled more than $500 million annually by 1998. Aamzon.com is the first successful book seller through the Internet, where customers have a choice of more then 3 million book titles and can purchase the one they like. The system Amazon.com uses is a very simple and easy one to use for customers. In order to purchase a book, customers have to provide their shipping and billing address and credit card information and this information will be saved for the next time they purchase something. This way the customers order next time will take just seconds. The main strategy of Amazon.com is to make an online experience for customers simple and pleasant. Also, Amazon.com uses an information technology called collaborative filtering to recommend books based on the past purchases of buyers with similar histories. The site also allows readers to post their reviews about books they’ve read so that it will keep new readers interested in some new books they might purchase. Barnes & Nobles was a century-old storefront on New York’s Fifth Avenue until entrepreneur Leonard Riggio bought it in 1971; today it’s a retail giant with more than 1000 stores; plans to open 500 more stores in the next decade, had 1997 sales of $2.8 billion – and a new Internet arm of its own, barnesandnoble.com. Barnes & Noble offers customers a pleasant shopping experience and encourages spending time in their stores, peruse a book over some coffee, or attend a reading or children’s storytime.
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