Comparing Two Similar Businesses

1663 Words Feb 13th, 2012 7 Pages
Comparing Two Similar Businesses
Describe the history and core business of each company.
Amazon was founded in 1994 by a man whose name is Jeff Bezos. Mr. Bezos originally started Amazon in his garage. He believed that only the internet had the ability to grant consumers the convenience of being able to browse a myriad selection of book titles in the shortest amount of time. In 1995 he started the website Amazon.com which was primarily an online book store at the time. “During the first 30 days of business, Amazon .com fulfilled orders for customers in 50 states and 45 countries- all shipped from his Seattle-area garage” (Overview, n.d.). In Two years later in 1997 Amazon went on to become public being listed on NASDAQ under the trade
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The Kindle Fire made it easy and convenient for users to download, browse, and read books, magazines, newspapers or other media over a wireless network. I believe that with an attempt to win over some Apple customers, Amazon launched Amazon MP3 which is an online music store owned and ran by Amazon. I have downloaded music from Amazon and iTunes with Amazon having the cheapest price, I can definitely see some customers possibly leaving iTunes just for that very reason. Amazon announced in May of 2011 that they are selling more Kindle books than printed books. You have to give Amazons management a lot of credit for their approach on internet marketing and sales.
Borders management approach to internet and marketing sells were unacceptable. I do not believe that management did anything right to boost internet sells. Furthermore, Borders did not change with the times. They failed to expand their customer base the in many ways that Amazon did. The only thing that they offered was books and very little music. I can almost say for sure that a competitive analysis was never done because if it was management would see that their business strategy was not effective and that they were being blown away by the competition.
Analyze 3 reasons for Amazon’s success despite not turning a profit for the first five to six (5-6) years.
One reason for Amazon’s success despite not turning a profit for the first five to six years is because they made
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