Bus-Adm 799 Sample case On internet music industry For Amazone.com

Essay by modonUniversity, Master's October 2004

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Bus-Adm 799 Sample case


The purpose of the following is to assess Amazon.com's place in the current specialty retail industry through both financial and non-financial analysis. As computer technologies have been developed, the population of Internet and World Wide Web has raised fast sine 1990's. In this situation, many firms have launched or expected to start their business through the Internet. Sales products of the Internet business have become various and widely. Online buying is growing at an amazing rate. Therefore, companies that do Internet based business have great opportunities to succeed. However, the competition is greater and threats are all around. I have identified several key factors that play an important role in the success of your company. These key factors are the specialty retail industry, the most significant competitors and their actions of concerns, the company's resources and capabilities, and how your company stands financially.

Industry Analysis

The U.S

is the world's largest market for books. However, the book publishing is still fragment. Because of the fragmented industry of books, high percentage of publisher's sales occurs through the wholesalers. The percentage, however, has been decreased due to emergence of superstores such as Barnes & Noble and Borders.com. The leader of retail book business is Barnes & Noble. The superstores are directly supplied more than 95 percent of books from publishers. Therefore, the stores usually sell their products with discounted price because they can reduce intermediates such as wholesalers. The sales growth rate of the superstores is 71% while those of non-superstores rate is only 4%. Moreover, many independent stores have gone out of business because of the aggressive attack of superstore-chain. The growth rate of Internet bookstores such as Amazon.com, Barnes & Noble, Borders.com is very high. According to self-report of these Internet bookstores, they are growing...