Strategic Management of Amazon and Yahoo.com
The recent advancements in technology, computing, and Internet technologies have seen a rapid rise in the number of online businesses. Cases in point are the Amazon.com and Yahoo.com that took the globe by storm at the end of the 20th the century. Broadly speaking, e-commerce has become one of the most lucrative platforms to conduct businesses (Nabi, & Luthria, 2002). In this paper, two relating Amazon and Yahoo are reviewed. First, I seek to find out the source of Amazons success as a leading online retailer in 2011. The study will also establish whether Yahoo's business model functionally geared for success during the same year. In addition, the distinct business strategies of each of these entities and the way the strategies resulted in comparative advantages are also analyzed.
Amazon.com, the world's largest online retailer, is an American company that was established in 1995 by Jeff Bezos. The headquarters are in Washington DC. Having started as a book selling business, the company has grown exponentially over the last 17 years to incorporate several other products. These products include music, DVDs, video games, toys, software, and video among many other home improvements goods. As at the moment, this company boasts of customer base of 22.5 million across 150 different countries all over the world. On the other hand, Yahoo.com is a multinational Internet corporation based in Sunnyvale, California. It was set up by Jerry Yang and David Filo, who are both electrical engineering graduates from Stanford, in 1994 (Canzer, 2006). The corporation is largely known for its Web portal and search engine known as Yahoo Search. In addition, it offers several other related services such as Yahoo Directory, Yahoo Answers, Yahoo Mail, Advertising, Finance, and Yahoo News. Recently, Yahoo also ventured into social media services (Nabi, & Luthria, 2002).
Amazon strategic organization entailed a combination of informational elements such as a virtual storefront...
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