CHPTR 17

Amazon.
com
1. Why has Amazon succeeded online when so many other companies have failed?
Because Amazon always provides new innovations to customers, and Amazon created
personalized storefront for each customer by providing more useful information and more
choices than found in neighborhood bookstore. Amazon also makes it easier for
customers to choose books, because in the Amazon application readers could review
books and evaluate them on a one- to five-star rating scale, while fellow browsers could
rate the reviews for helpfulness. Amazon is an American international e-commerce
company. Amazon has succeeded for a number of reasons. It is due to its readiness to
grasp and adopt the latest technology. For Amazon the latest internet technology has
allowed the online business to offer products to consumers through perfection centers
which can save time for the customer and the money for the seller. They have an
advantage in how they use that technology. By understanding the technology used, the
company has created a competitive advantage that will probably remain. Amazon always
accepted addition of new products to its site. Even though it has started its business
selling books or music mp3s, presently it deals with 21 different types of product. A
consumer can shop at Amazon.com for physicalor digital goods. The recent development
of Amazon's digital goods has attracted consumers looking for all types of products, from
instant downloads of music and books, to literally any type of good. Amazon also added
a self-publish service. Writer can self-publish a book on Amazon. The distinguish types
of products availability have created a very strong customer base. Amazon has
capitalized upon their search results by selling products owned by others and allowing
common people that is not professional sellers to sell a large number of goods, with
assured restrictions, in their marketplace. This has given Amazon a specific advantage in
the market. If people want anything, the first vendor that comes to people’s mind is
Amazon. It is easy to sell products with the help of Amazon. And it can be attracted with
many suppliers. Amazon’s product is cheaper than another.
2. Will the Kindle revolutionize the book industry? Why or why not?
Kindle has revolutionized the book industry to an extent, as online book options are
becoming more popular with readers as customers. Am online reader and the ability to
access books online, makes reading more convenient for those who want something more
convenient and immediate that the library or bookstore. However the book industry is
competitive and other online booksellers have emerged on the market. Barnes and noble
is the most reputable competitor, with its version of the electronic reader, the Nook.
There are also alternatives, such as accessing online books for download, through
personal computers and tablets. Some of the new tablets are being made with larger
screens, so that users can download and read electronic books. The competitive
advantage that kindle once realized is no longer as profitable as it was initially.
3. What’s next for Amazon? Where else can it grow?
Amazon offers a wide variety of products and has many businesses. They were initially a
online book selling company. It made a huge customer base over there and now they
s[spread their business in other products and now Amazon is a very big company. If we
talk about the Amazon next move then there are lot many prediction going on. Most
recent move of the company has come into FMCG industry by investing $13.4 billion.
The prediction is that the company may buy some big giants like FedEx, UPS etc to
increase their delivery network. This will help the company to deliver the FMCG
products from these companies and will cut the competition. Another prediction is that it
may inter in communication where it can develop software to dial international calls at
cheaper rates.Cloud computing is the right direction for the company and the company is
doing very well here. The cloud computing of the company is the ranked as a safest site
by the Forbes.The cloud computing revenue has been reached to $12 billion and the
profit is $3 billion. The expectation was $10 billion but the company is growing more
than the expectation.If we take the revenue as a benchmark then we can say that the web
services of Amazon are in right direction.The company should make their campaign in
the other countries as well regarding their cloud computing. By this way they can grow
more.
Tesco
1. As Tesco expands overseas, can it succeed by using the same strategies it has used in the
United Kingdom? Why or why not? What factors should it take into account while
formulating strategies in global markets?
As Tesco expands overseas, they can not succeed by using the same strategies it has used
in the United Kingdom because different country also have different mindsets, and than
Tesco reyreat from US market, compete strategies are more versatile, technological
differentiators. Three factors should it take into account while formulating strategies in
global markets are local partnerships and image, considering with localized strategy, and
investing in building local supply chain.
2. What are the ways in which Tesco connects with its customers to provide more value for
them?
Some value that tesco can provide to the customers are loyalty program, club card, sales
promotions, customized discounts, Annual customer question time, survey humorous
advertisements ease of shopping.

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