Cyber Monday came and went this week in America—and it was the biggest shopping day of the year. More people logged onto their computers to make purchases than went out on Black Friday, the traditional day for shop-til-you-drop purchasing. The torch was passed: online retailer Amazon’s stock soared, as reported by Durden at ZeroHedge, with the report that the online retailer had trounced its bricks and mortar competition. Bricks and mortar store traffic fell by 1% from the previous year. Online purchasing rose by 17% (Durden). If anyone had any doubts about it, bricks and mortar retail is on the ropes and the online giant Amazon is perched to defeat its competition with a stunning KO.The specific problems plaguing traditional bricks and mortar stores are that it is simply easier for consumers to log on and check out with the click of a button. Amazon Prime has enabled consumers the option of taking delivery quickly—anywhere from 2 days to 1 hour, depending on the item purchased. Consumers are willing to pay a premium because there are other incentives to being a Prime member as well: access to films, shows, music that can all be streamed online. Plus, Amazon delivers more than just products like movies, TVs, computers, and books: it is also in the grocery-delivering business. With the online giant’s recent purchase of Whole Foods, the go-to place for online shopping just expanded...
Thus, there is less incentive to go out and shop: one has to face traffic, crowds, the possibility of what is wanted not being on the shelves, the hassle of leaving the house, finding a parking space, braving the weather, and so on. In the digital age where everything can be shopped for online and delivered straight to your door, there is less and less reason for anyone to choose the bricks and mortar retailers. The online retailers offer consumes much more ease of access when it comes to shopping.
Amazon Facts Recap The rivalry between Amazon and Barnes & Noble has taken another turn. Barnes & Noble announced that it would not sell books from Amazon's print publisher in its stores. Amazon has taken away significant business from brick-and-mortar book stores, something that Barnes & Noble has countered with a number of different approaches. The move into print publishing for Amazon represents that company's continued vertical integration efforts, which includes digital
Amazon v. Borders Borders Group filed for bankruptcy protection in early 2011 (Wahba, 2011) and began liquidating its assets in July of the same year (Khouri, 2011). The company was founded in 1971 and operated an expanding network of stores until 1992 when the group was bought by Kmart and later merged with Waldenbooks. The combined entity was spun off with an IPO in 1995. Flush with capital, by 1997 the
Amazon's growth pattern has been simple. The company has grown in two main ways since its inception. The company has added more products to its lineup over the years and it has expanded internationally as well. The company has grown rapidly as the result of these additions to its lineup and organic growth within its core books business. The pros of this approach are that it allows the company to
Amazon.com: Technology and Market Share Much of what drives Amazon is technology. As it states in its mission statement, Amazon sees that their "vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online (Amazon.com 2011)." This tradition is taking another step into the future with the advent and development of Kindle. This new
Amazon represents one of the modern success stories that is similar to other stories such as Microsoft and Apple in many ways. For example, the company originally started in a garage with a limited budget. The company's founder, Jeff Bezos, focused more on the potential for new distribution channels to be built rather than any specific product. Books were only one of the products on a long list of products
Amazon: Report on 8 key Elements of Business Model / Report: B2C Strategy behind the Success of Amazon E-commerce -- a subdivision of e-business -- denotes a wide range of activities involved in selling of products via electronic channels (such as the Internet). A novel emerging business model in the e-commerce domain is the web-based social shopping, which has gained immense popularity, of late. The e-commerce website, Amazon, allows customers to
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