Toys R Us Vs Amazon Case Summary

8. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least three direct competitors and three indirect competitors. (6-12 sentences. 3.0 points)

Amazon.com was founded as an online bookstore in July, 1995 and went public in May 1997. In June, 1998 Amazon.com launched its music store. Since then Amazon.com has become the most prominent Internet retailer. Over time Amazon.com has added several products including electronics, health and beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several services such as auctions, 1-Click ordering, and zShops. Amazon.com has expanded nationally and internationally and now operates several customer service and distribution centers in the United States and international web sites that

The District Court decision granted summary judgment against all three Plaintiffs (Lynette, Barret, W.T. Melton, and Treva Nickens),

Portray the competitive strategy of the (competing) firms using the grid of “strategic target” and “source of competitive advantage”.

Porter, M. E. CompetitiveS trategy. (1980): Techniques for Analyzing Industries and Competitors. New York: Free Press.

In setting aside the decision rendered by the district court judge, the majority opinion authored by circuit judge John M. Duhe, Jr.

The Court of Appeals affirmed the District Court’s summary judgement and enjoinment of the laws public disclosure provision. The Supreme Court reversed judgement.

Select one (1) global industry, such as the automobile or cell phone industry. Next, use the Internet to research three (3) major international competitors within the chosen industry. Take note of manner in which the popular international business press (e.g., newspapers, magazines, e-zines, press releases, etc.) depicts the selected companies.

6. Competitor analyses – discuss key competitors and their key strengths, weaknesses and are they major threats to the firm - briefly explain.

Since its incorporation in 1994, Amazon’s business model had expanded from offering a simple internet marketplace for books to providing web services to online retailers, storage solutions and a dramatically expanded product line. Nevertheless, despite massive sales the company failed to produce a profit for shareholders and Amazon was on the brink of bankruptcy at the beginning of 2001. If I were a shareholder who received the company’s 2000 annual report, I would have strongly agreed with CEO Jeff Bezos that the company must achieve profitability by year-end 2001. I would recommend that the company accomplish this by cutting costs related to fulfillment and inventory and by increasing revenue by capitalizing on the previous year’s investments in infrastructure.

Amazon.com, Inc. or www.amazon.com has a mission statement to be the most customer-centric or customer-oriented retailer on this planet, where people can browse and buy anything they want to buy online with prices as low as possible on the market. (About Amazon) They are one of the world’s most important online retailers and providers of web service. (Amazon.com Inc.) They offer a large-scale of products such as clothing, merchandises for car and industrial uses, beauty and health products, books, games, electronic devices, grocery, food, jewelry, merchandises for kids and babies, movies, music, toys, sports goods, and etc. (Amazon.com Inc.) They also offer

Rivalry between companies takes the form of competing for position using different strategies i.e. price and advertising competitions and product positioning. This rivalry increases when companies have an opportunity to improve their position or the competitive pressure increases. Companies are mutually dependent, so the pattern of action and reaction may harm all companies and the industry. TSCO’s main competitors are Rural King, Southern States and Orscheln (Logel;Klein, 2015).

Examine three barriers that you believe represent the most significant obstacles to an effective competitor analysis. Propose a strategy to overcome each of the three barriers that you have identified.

To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’

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