Amazon Case Study - 1

1250 Words Dec 16th, 2012 5 Pages
| Amazon Case Study | | | 11/24/12 | Amazon Case Study | | |

Amazon Case Study

Question 1
In 2000, Amazon and Toys-R-Us entered into a symbiotic agreement that would benefit both corporate entities. Both companies had recently had unimpressive fiscal years due to differing issues. Toys “R” Us struggled with poor order fulfillment. Although they were equipped with enough merchandise, other issues kept them from being able to get orders to customers in a timely manner; especially during the busy holiday season. Conversely, Amazon was forced to write off $34 million because of a miscalculation in inventory and had orders that could not be honored (Ouchi, 2004). Following these debacles, both organizations felt that joining
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After all, the number of customers that shop Amazon.com each day dwarfs the number that shop Toys-R-Us in a given day.
Another aspect of the negotiation that could have been changed, resulting in a more effective and symbiotic outcome, would have been the number of years the terms included. If the agreement had, instead, called for an annual or bi-annual renegotiation, then perhaps neither organization would have been prompted to sue. Instead, they may have simply waited out the shorter termed agreement and renegotiated the terms or cancelled the agreement afterwards.
Question 4

Management Memo
To: Amazon.com Upper Management
From: Zappos Upper Management
Cc: Amazon.com and Zappos.com Shareholders
Date: November 24, 2012
Re: Merging Web Presences

Throughout the past several years, since our companies merged, both organizations have benefitted from each other’s pool of core competencies. As a result, consideration has been made to move the merger further by combining our two web presences. Up until now, we have been able to share each organization’s strengths while keeping each company dynamic separate to allow us both to succeed in terms of what we do best. For example, although Amazon.com is fantastic in its ability to provide vast product lines, speedy delivery, and customer convenience, Zappos.com prides itself on a different approach. Zappos.com prefers to focus upon developing rapport and deep customer

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