In this chapter the researcher is analysing the empirical findings by applying the theories of literature review. Consequently, this chapter will be helpful for writing the recommendations and solutions.
4.1 Porter’s Five Competitive Forces Analysis:
The manufacturing process in online book industry is relatively simple despite deploying a highly modernized technology which means to have fewer entry barriers. Moreover, the pages made by E Ink Corporation are electronically displayed on Amazon Kindle like in Sony e reader, irex, iPod etc. In this regard there is a huge challenge to persuade more book publishers so that more books can be accessed on the Kindle. However, due to being immature the E-book industry is facing uncertain pricing standards in the market and there is too much price distinction exists with respect to different models of e readers but the prices of Kindle is relatively higher than its other rivals such as Sony, Apple etc. Apart from that the e-book industry has been receiving very low customer support and the manufacturers are instead of growing their businesses always seeking to steal others customers. The bargaining power of supplier is mainly obtained from the accessibility to substitutes, number of suppliers, and the switching expenses to other inputs. Therefore, the Amazon Kindle involves two major inputs such as screen and system technology. E Ink Corporation develops the technology for the display of electronic screen on Kindle and for many other e readers. As the electronic paper is quite new in market which means there are not so many substitutes and firms in this field. Furthermore, it means E Ink possesses very little supplier bargaining power with respect to Amazon Kindle which might be changed...
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...ed in providing the latest titles of books Amazon has been following a unique strategy to offer a fully customized manner by launching its book searching tools and email announcements to its customers. Amazon is also confident to give satisfaction to its partner book retailers such as Barnes & nobles, Borders, and Google by complying with all legal formalities such as book conversion standards and media distribution criterion for preventing book piracy and substandard reading material. But, there is an imperative need to follow some effective ways of advertisement and consistent pricing strategy to confront its competitors. Despite all these, Amazon Kindle is suffering from some weaknesses but still it has been revolutionizing the book businesses and the reading patterns of its customers by preventing the book piracy in order to supply qualitative reading material.
When founder and CEO Jeff Bezos studied retailing opportunities on the Internet, he decided on books because there was a broad field of book publishers but too many titles to be carried by a single store. Everyone reads books but has different preferences about what s/he wants to read. Although Jeff Bezos had no previous experience in the book trade, he saw a business opportunity in selling books solely on the Web. He started the company out of his garage in a Seattle suburb, wrapping orders and then delivering them to the post office in the family car. The characteristics of the books retailing industry make it amenable to electronic commerce: a great variety of products and consumer tastes, and tastes which hanker after a lot of information about the products. Moreover, there is room for bringing down margins, i.e. offering customers deep discounts.
This source considers the issue of converting to digital books, specifically as it pertains to the effect that this change would have on the global environment. Although the research does recognize that there are disadvantages to not having a physical copy of a book and to abandoning certain platforms that do not transfer well to a digital form, overall, these researchers conclude that publishers should move towards digital products not only for the sake of cheaper long-run costs, but also for the good that going paperless can do for the environment. By displaying a series of graphs, as well as including multiple data sets, the text explains how e-books compare with printed texts; then, analysis of these facts is also included to show the reader the authors’ point.
Barnes & Noble Inc. reached a deal to sell color tablets made by Samsung Electronics Co. co-branded with the book chain's Nook label. Samsung was co-brand a custom 7-inch tablet for Barnes & Noble (BKS) based on the manufacturer’s Galaxy Tab 4 model and featuring the bookseller’s Nook software. For Samsung, the deal brings the considerable heft of Barnes & Noble’s retail and online sales presence, particularly considering it's for a model the company already makes. The deal fulfills Barnes & Noble's previously stated plan to reduce its heavy investment in the Nook, which has been a financial drain in recent years, allowing the retailer to focus more on its stores and college business.
Nodoushani, O., & Yang, C. (2011). E-Print industry and bookseller market: A Strategic perspective. Competition Forum, 9(2), 319-324. Retrieved February 24, 2012, from ABI/INFORM Global. (Document ID: 2548633731).
The paper opens with review of literature related to the study and proceeds with research framework. Then it presents research methodology along with results. The paper consummate with discussions, conclusions and limitation.
Amazon is a large well-known business that I decided to write about because it’s a site where many people worldwide and students from Montclair State University (MSU) use to purchase many things such as books and other necessity for their classes. Amazon was the business that I picked rather then other institutions because I wanted to develop and research their company in depth to find out different techniques and discover what Amazon is all about. Especially since it’s a company that many of my friends and family members use every day. “Amazon.com is an American e-commerce company based in Seattle, Washington. Founded in 1994 by Jeff Bezos, and launched in 1995, Amazon.com began as an online bookstore before diversifying its product lines.”
Brian Fung asserts in his article "There’s a War on between Amazon and Its Suppliers, but Which Side Should You Root For?” that" Amazon wants to pay the supplier less for products, and the supplier wants Amazon to pay more. This kind of negotiation happens all the time, but Amazon's talks are drawing attention because of the dominant role it plays in getting us the stuff we buy.”(Fung 1) While the article's title portrays Amazon as being against the suppliers, its important to realize Amazon’s interface provides a great interface for its suppliers to reach a wider market, intact Fung mentions it in the article that "Amazon has also vastly expanded the overall market for books more generally. The novelist Barry Eisler defended the company
In the first stage Amazon’s main objective was to create a virtual bookshop, where customers could have more choices than any physical bookshop in the world, but also, he did not want to spend time and money on building warehouses and deal with inventory b...
The cheaper touchscreen, assuming that all other factors remain constant, would, initially, shift supply because the consumer dictates the demand. Cheaper production costs could lead to an increased number of Kindle Fire HDXs produced but as the CEO, I must determine whether or not my current production force is at capacity or not. Assuming that I am able to produce more units without hiring more workers, my asking price could decrease substantially and, since my production costs decrease substantially I am able to produce more units without increasing the overall cost to the company. (Impact of Shifts in Demand and Supply, 2006)
In addition, Amazon has also given the customer the opportunity to sell goods. The customers have a huge amount of power when researching and choosing products of the thousands of products at the tips of their fingers. Amazon has just about every department of a store you can imagine, from gardening and lawn accessories, to kitchen machinery, to shoes, and to the strongest departments in my opinion, which is the reading and electronics. The book was the very first product and vision behind Amazon as Bezos “narrowed the list to what he felt were the five most promising [products to be sold via Internet]: compact discs, computer hardware, computer software, videos, and books…”: then deciding to create the worldwide selection and platform to sell literature in print. Little did Bezos realize at the time, that his print literature idea would develop into the foundation of the electronic department. This transformed into varying products and services to be offered to the consumers: from actual devices to purchase, to the Amazon exclusive “Kindle” E-reader and accessories, developing growth into the “Kindle Fire” TV, and the exclusive purchase of “Audible”, which is now an Amazon company audio book
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
The goal of this report is to analyze the Amazon's e-business strategies and activities. This report also discusses the result of strategies adopted by Amazon and how far it has been successful.
Amazon’s customer philosophy can be traced from a letter extracted to the 1997 Annual Report that stated their focal points by offering customers products that they think is worth buying. Amazon tries to set apart their operations by suggesting extraordinary way in doing transaction and start by offering online books whereby they can get access to it anytime they want. Other value-added offers include 1-ClickSM shopping, customer’s gift certificates and immensely reviews, browsing options, content and suggested features. Amazon strategy focuses on reducing the price. Thus, increase the customer value. Amazon became the market online bookselling leader by encouraging customers repeating purchases through the advertising strategy that is proven effective which was word of mouth approach.
During the past few years, the publishing and reading world has been facing a veritable digital book onslaught. E-books have been outselling print books on Amazon since 2011 (Polanka, 7). While digital book sales skyrocketed, print book sales, especially those of mass marked paperbacks, diminished. Even the fact that e-books are not much cheaper than print books does not seem to interfere with the former’s popularity. It would seem that the age of print books is about to end, and quite soon.
Some years ago, with the arrival of digital technology, the process of reading has been changed to make it easier for everybody; therefore digital books are replacing the actual physical books. In spite of the fact that paper books and digital books are very similar in some ways, such as tittle pages, copyright page, covers, chapters or tables of contents; they present a visual and a sensory difference. In fact, they have a similar action that gives benefits but drawbacks at the same time. Paper books are tangible, accomplishment, easy to share; they have a unique aroma, and a sensitive side. But people should take in consideration that digital books are the better choice, because they are portable, convenient, cheap in price, and easy to manipulate, not to mention that anybody is able to have an bunch of them in only one file, either their phones or