Amazon
Situation Overview
Distribution channels can often create interesting situations when there are vertical or horizontal consolidations. Amazon has recently integrates backwards with the intent of attracting suppliers and the expectation of utilizing other outlets for full distribution of its products. The company can now publish an author's book and push it through traditional distribution channels that are not under Amazon's control. For example, if Amazon publishes a book for a client, it can then push this through the distribution channels of its competitors, such as independent bookstores. This significantly expands Amazon's control over the industry and it already has incredible power as the industry leader.
However, such a move to vertically expand backwards has not come without controversy and resistance. Barnes and Noble, the largest traditional bookstore chain, which also has a significant online business, has decided not to stock Amazon's products in the hope of discouraging authors from signing publication contracts with Amazon. In this industry, there was once a level of vertical cooperation among authors, publishers, and retail outlets. However, Amazon's creeping into other channels...
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