Amazon, Part 2 CORRECT 100%

Amazon, Part 2 CORRECT 100%
B&M vs. Online Competition Characteristics - ANSWERB&M Stores: attempt to
move online, small stores close, large chains compete against Amazon, no
wholesalers

Online: **Many potential entrants, chains conduct price wars with Amazon

Why did Amazon ultimately win the price wars? - ANSWERAmazon had IT+Logistics
to cut costs unlike the B&M stores online.

Corporate Level Growth Strategy with Sale of CDs - ANSWERRelated Diversification
MEANS=acquisition, organic

Why CDs? - ANSWER=influence from shareholders
=scope/scale
=joint operations with Book Selling

E-Commerce Corporate Level Growth Strategy - ANSWERGrowth in the Same
Business
MEANS: 1st organic, then acquistitions
-low Barriers to Entry
-Many Potential Entrants

Amazon's Corporate Level Growth Strategy - ANSWERGrowth in the Same
Business (domestic and globally, global sales limited by English)
MEANS=acquisitions of other companies (then transformation of these companies
with Amazon's strengths)

Turning Point for Amazon - ANSWERSale of CDs


Low Cost of Amazon's E-Commerce (functional-level strategies, 1) -
ANSWERLogistics
-scale+scope
-high inventory turnaround

Low Cost of Amazon's E-Commerce (functional-level strategies, 2) - ANSWERAfter-
Sales
-email customer support vs. phone
-OUTSOURCING

Product Differentiation of Amazon's E-Commerce (functional-level strategies, 1) -
ANSWEROperations
-improved ease of use
-reviews
-Alliances=Associates Program