Amazon.Com Case Study

The article, “Amazon.com Is a 21st Century Deal with the Devil” from Amy Koss, published by Los Angeles Times on June 4, 2017. The death of the American mall is avoidable. It is avoidable by promoting it on the Amazon website, or it is also avoidable by closing down the website. Even if none of this happens, there will always be people who are not lazy enough to get up and go to the mall. There are also a lot of people in the world who do not know about the website amazon.com. For those who do not, it means they go to the mall instead of shopping online.

In the article, “Amazon.com is a 21st century Deal with the Devil” the author Amy Koss makes her piece an argumentative writing. She tries to persuade the reader that the company, Amazon, is cruel and untrustworthy. The author states,”They’re offering deals and deeper discounts, closing branches, consolidating staff, trying to fend off the inevitable. According to the feds, there have been 60,000 retail jobs in just the last two months.” I disagree with the author’s statement and believe that Amazon is just doing what they have to do, so they can make money and build a stronger business. It isn’t exactly Amazon’s fault that other businesses are closing making people loses their jobs. The other businesses must have their prices very high, making

When we compare with amazon.com we will find same features and can sell our goods at amazon.com

Amazon make sure that customer service is the best, Customers experience low prices through Amazon, the fastest delivery, having a form of reliable contact. Amazon customer service problems have allowed retailers to sell itme on the website, to make broaden the worlds selections of products. Amazon has a rival EBAY, which also allows merchant to sell and buy through its site, but with eBay there has been complaints with poor service and fraud (Cohen, 2009).

I think that MSL did breach the contract with Macy’s. First, their contract was an exclusive agreement, which implies that only Macy’s had tot sole obligation to sell those products apart from MSL and its related conglomerate. This means that at no one time, as long as the contract held, would MSL engage another party in partnership or joint venture, to sell products prescribed under the contract. When MSL decided to get into another contract with JC Penney (JCP) it would be expected that the agreement would diverge from what the other contract had exclusive rights. In the case study, out of the 2500 designs presented to JCP, about 900 fell into categories restricted under the Macy’s exclusive agreement. Hence, MSL was in breach of Macy’s

In the last decade, Amazon has grown exponentially. Many people believe the seven hundred and thirty-nine billion dollar company controls America. The definition of a monopoly is “the exclusive possession or control of the supply or trade in a commodity or service.” If Amazon falls under the category of a monopoly, then Amazon would control America, therefore proving the company has too much power. If Amazon is not considered a monopoly, then this does not disprove the power of Amazon; It just means that the power that Amazon holds is legal. E-commerce has also become popular in today’s world, and Amazon dominates it. No one comes close to catching up with the company, as it will most likely always be owned by Amazon. The closest competitors Walmart, Ebay, and Apple combined do not even compete with the revenue that Amazon brings in through e-commerce. Amazon has destroyed more jobs in the United States than they have created. They also destroyed more jobs than China has in the United States, which is a problem. One company has a lot of control in creating or losing jobs to the U.S economy, and that is a scary

If many Americans eventually get questionable with Amazon’s tactics, there is a solution to the problem. Since citizens of this country elect representatives, this gives individuals of this country power. If we have a problem with how many jobs Amazon has gotten rid of, or how many companies sell their business to Amazon, citizens should simply vote for representatives passionate about fixing this issue. Many people wonder where we should draw the line just in case Amazon gets too out of hand. The government should step in when the majority of customers stop getting satisfaction. Currently, many citizens seem as if Amazon satisfies them as a consumer. But, if this ever changes, America should take away their extreme amount of power. Does Amazon have an extreme amount of power? Yes. Is it currently a problem that America needs to address? No. However, if more jobs and business become destroyed and many citizens are no longer satisfied, this would call for change. The three main reasons why Amazon control America are the jobs that the company has lost, the number of businesses destroyed creating less competition, and the dominance in e-commerce; simply something no one has ever seen before coming from a dominance of a business online. Whether individuals love the convenience of Amazon, the cheap prices, or easiness, everyone can agree that Amazon will continue to grow in business. If this is the case, many jobs will be lost in the process and the competition will pull farther and farther away from the company. Yet, having too much power comes with responsibility, and Amazon has not done anything out of hand. Just like any other businesses dream, Bezos has built a powerhouse that has even more potential. With Amazon setting prices at a reasonable cost, no one has a problem with the amount of power that the company holds. If this happens to change in

In 2009 Toys “R” Us opened small pop up stores, or what they called Toy “R” Us express. Intended for holiday purposes and for toys that the Main branches did not sell. The express stores attracted a lot of customers, and lead to open more stores in malls. With closing the main branches and focusing their energy in these stores they could maintain market presence in the store industry. These Pop stores would function as an outlet for them, selling their toys at the fraction of the price and to avoid overhead room they could pick excess toys from competitors or locate stores. They can have partnerships with different stores, working exactly how a TJ Maxx does, and selling those toys at a lower price while not working under the Toy “R” Us name. Instead of having their name backing up the store, it would work better for them to have a different name but the revenues would go to Toy “R” Us. By helping getting more brand exposure and helping to create new brand enthusiasts. Outlet stores save from charging shipping costs and from having to deal with lost packages, tracking codes, customer addresses and complicated online sales databases. With a retail outlet, you can make each sale with greater confidence and fewer conflicts. In this case Toy “R” Us will have both a step in the online game with their own toys and a step in the outlet toy

In the business world there is always going to be competition between different companies for which ones have the better sales prices or which one is doing the better business. The thing about this is that many businesses will actually do anything they can to win in the perspective of having a more successful company, even if doing so illegally. This article is exactly what Amazon was trying to do with Apple and all the other Publishing companies when they decided to take Apple to court.

But since then situation changed dramatically. Toys-R-Us arrived late to the E-business world with Toysrus.com in 1998 losing critical early battles to eToys.com and ceding some of the market to Amazon.com and KBkids.com. The development, launch, and operation of toysrus.com

Both Amazon Web Service and Worldwide Consumer maintain separate entities while being wholly owned subsidiaries of Amazon. Each subsidiary is essentially a division of Amazon and serve to meet the needs of the consumer and developer customer sets and extend Amazon’s market reach. Additionally, Amazon provides a list of significant subsidiaries in the 2015 Annual Report. Hoyle et al. (2015) suggests business combinations are part of an overall managerial strategy to maximize shareholder value and expand into diversified areas (p. 40, 41). Along with the significant subsidiaries Amazon owns a

Threat of Substitutes- Toys R Us has a potential threat from other companies that have similar products that will satisfy their customer’s needs. (Hill, 2015 p. 58) Walmart, Target and Amazon are just a few of the companies that offer either the same or similar products as this company, therefore making the availability of substitutes very high. These companies have a competitive advantage because their products are usually priced lower than Toys R Us. The strategies that the company used in the past which was low price, low service was fine in the beginning. But now that concept is outdated and has run its course. Today Walmart and Target are cheaper and the other local toy stores offer better service (Anonymus, 1999 p. 192) Our society has evolved and things are changing rapidly. Today almost everything is virtual, which means people tend to shop online more. According to Keldy Ortiz’s interview with a mother, Bonaldi from N.J., she said “Half of the toys end up going to Amazon”. This parent as well as others were upset to hear of the Toys R Us bankruptcy, but she realized the reason why they made the decision was because “If you go online, everything is cheaper” (Ortiz, 2017 p. 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

Conclusion: The entry of Toys “R” Us would shake the traditional Japanese toy business, however the cracks appearing in the retail structure points towards the need for transformation in the Japanese market. Hence Toys “R” Us potentially is a good prospect for the Japanese markets.

The reaction to Amazon’s marketplace initiative in the financial markets had been generally positive. Indeed, Amazon’s stock was up 52% for the year (as of mid-September 2002) versus a 35% drop in the NASDAQ index. Still, doubts clearly remained in some observers’ minds. For example, Holly Becker, an equity analyst at Lehman Brothers, had reservations about Amazon’s model. In a report issued in February 2002 she said, in part: The used business appears to be an excellent complement to Amazon’s core retail offering. The used business allows Amazon to participate in a growing market that leverages all of the inherent benefits of the Internet . . . a truly virtual model, used eliminates a large portion of fulfillment costs and inventory risk, and therefore provides higher margins . . . but . . . we believe used is detrimental to Amazon’s franchise in the long term. The company’s point of difference, market share, and service capabilities are far greater in new products than used . . . we believe cannibalization is likely in the longer term.1 While the company had made dramatic strides in expanding the range of products it offered, there were still many categories in which it participated little or not at all. Thus, a key element of enhancing selection was to constantly expand the range of