references

Books
1, The companies use technology to streamline operations, boost brands, improve
customer loyalty and ultimately drive profit growth
p15. the nees and demographics of the online customers differenets wiht traditional. they
are interested in incremental price saving ( all in savings of around 15 percent", they
pressed for time they dont mind waiting up to three days for delivery. "the demographic
of online shopper cleary disinguish what they valie from their off line counterparts"
, page 1!" To creat a satisfying shopping e#perience, the company created an e$retail
infrastructure that meets the nees of customers. %#" titiles that are difficult to finds,
relatively unpopular or out of print can be traced through a special order department.
&hen a customer in'uiries about an out of print book, the department contacts
supplieres to check availability and is a copy is located, notifies the customers by email
for approval of the price and coditions prior to shipping the book. This level of service for
a national and internaltional audience in unprecedented in the book retailing business
$ the winners will also privide the best level of service in terms of price, speed and
control. Traditional customer e#periences have temporal and geographic bounds"
customers must go to a specific store at a soecific location between certain hours. The
the online e#perience is 'uite different $ largely virtual and nonspatial $ and it needs to
become familiar, informative and usable
(, )age 1*" +ma,on-s dominance in feature innovative forces competitors to continually
play catch$up and to .uggle the challenges of their bricks and mortat enterprise
Book" e$business ./ 0oadmap for success1 nd
+uthor" 2r. 0avi 3alakota .
)ublish " perason education 1 canada
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III,
9ompare 5 forces +ma,on vs barnes ad nobles ( brick and mortarG
+ma,on.comHs +dvantages
$Innovative
$9ustomer @ocused
$Jirtually %fficient
Barnes : <obleHs +dvantages
$8any retail stores that can connect with customers
$Kave and established brand name
$8any years of industry knowledge
+ma,on.comHs 2isadvantages
$@ocused on way too many products
$=nable to physically connect with customers
$Business model is not proven
Barnes and <obleHs 2isadvantages
$Late to put their products on the internet (e$commerceG
$Lack of 9ustomer focused innovation
$=nable to respond to 7trategic operations
+ma,on.comHs Business 8odel is not viable
$+ma,on is in long$term debt, that fluctuates to about 1. billion dollars
$They have yet to reach profitability
Barnes and <obleHs Business model is viable
$ they have become very profitable business
Jalue 9hain of Barnes and <oble
$Traditional ways of selling booksM physical bookstores e#ist"
+uthors $$N )ublishers $$N 2istributors $$N B:< $$N 9ustomers
Jalue 9hain of +ma,on.com
>n$line sales$no physical bookstores e#ist"
+uthors $$N )ublishers $$N 2istributors $$N +ma,on.com $$N 2elivery $$N 9ustomers
9ompetitive @ive @orces 8odel ()orterG
<ew %ntrants
The online bookstore industry that +ma,on.com has pioneered in was, at first, very hard
to penetrate. There were different barriers such as distributing capabilities and the
variety of the selection offered that are supposed to be hurdled. +ma,on successfully
solved the tricky parameters as being the first one to get into the whole idea of online
retail. &ith being the first, they had the lu#ury to set what were the norms for the
industry. @actors that may lower these barrier tactics would be a wider selection and the
ability to go to an actual bookstore to e#change or return books or other products. This
network of "actual" retail spaces makes it easier for the consumer to return or e#change
the products they were not satisfied with. These handicaps of +ma,on were the basis for
the emergence of book retail giants Barnes and <oble and Borders in the online
shopping industry.
Industry 9ompetitors
The ma.or competitors of +ma,on are Barnes and <oble and Borders. Barnes and <oble
is a retail giant offering books and 92s both in their outlets all over the country. It opened
their online industry in 1OO* and has become the fourth largest e$commerce sites today.
@ocused largely on the sale of books, music, software, maga,ines, prints, posters, and
related products, the company has capitali,ed on the recogni,ed brand value of the
Barnes : <oble name to become the second largest, and one of the fastest growing,
online distributors of books. Their "advantage" to +ma,on is the brand name and the
availability of actual retail outlets in which consumers could go in to e#change or return
products easily. They also have an established book selection based in their retail
operations.
The >nline Bookstore industry have become a fierce business which involves discounts,
varied selections and fast delivery in which all three companies are challenging each
other.
Buyers
The consumers of this industry can be found in every corner of the population. These
are mostly people who have had some form of higher education and have access to the
Internet and computers. The segment of online shoppers has increased dramatically in
recent years due to the convenience of shopping in the comforts of the home and the
accessibility of the Internet. These developments have made it easier for consumers to
log on and buy on the Internet. 9onsumers also tend to compare prices among the retail
leaders such that buyers are able to buy products with very big discounts compared to
ones bought in "actual" retail outlets. The bargaining power of the consumer is based on
the competitive strategies of each active firm in the industry. Thus, consumers can
challenge one firm for charging more than the other one such that the firm will beat the
price of the competing firm.
7uppliers
+ma,onHs suppliers range from the publishing and media houses to electronicsH
manufacturers. +ma,on buys all their books, videos and audio 92s from the multi media
houses and publishing giants such as Time &arner, 2oubleday etc. +ma,on also has
alliances with other bookstores to cover orders that they cannot serve.
7ubstitutes
The substitutes for +ma,on and other online bookstores are the "actual" book retailer
and music store, such as Barnes and <obles. &ith the rise of online retail, there will be
little impact from these substitutes. >ne impact would be some consumers who would
like to hold or listen to their purchases prior to buying and those who are into the whole
"shopping e#perience". Barnes and <obles have .umped into online retail and have
succeeded into diversifying into the new e$commerce industry.
&hich 9ompany will 2ominate the 0etailing industry4
&hy not +ma,on.com
$+ma,on.com does not have a physical store
$+ma,on.com has never show a profit and has lost a total of nearly P1. billion dollars
$7pends more for advertisement than a physical store
$9an sell a lot of books and music, but is not making a profit
&hy Barnes : <oble
$Kas many physical stores in many different locations with warm atmospheres as well
as, an online website.
$Kas shown a profit for its physical stores as well as the website.
$Kas a large customer base and is a trusted company
http://strategy-guide.blogspot.com/2006/01/amazon-vs-barnes-noble.html