Borders and Amazon Business Approach
Otis v Drummer
Bus 302 – Management Concepts
[ January 13, 2012 ]
Professor Dominique Emerald Sweeting
Describe the history and core business of each company.
Traditional book stores have been around for ages. Evidently, public libraries and private stores like Barnes and Nobles, Waldenbooks, and of course Borders are often the main places where people go to purchase or borrow their books. Nowadays, with the rise of technology, many more options are available to readers. For instance, we now have the choice to go online to look for volumes we might want to read or buy; thus, one of the leading companies captivating the attention of many is Amazon which alone with Borders constituted two of the most prolific book organization in America. According to research, Borders started in as a small used bookstore in Ann Arbor, Michigan by Tom and Louis Borders who initially intended to help supplied academically the University of Michigan (Borders Group Inc., 97). Over the years, after several movements and stores being opened, the company was acquired in 1992 by K-Mart which happened to own the chain of Waldenbooks as well. Unfortunately, the relationship did not last long because three years later Borders book became 100% publicly owned and still conducting business that way (Borders Group Inc., 97).
Meanwhile, propel by electronic commerce, Amazon which started in 1995 is considered the pioneer of online book selling (Press, 2004). Being the first internet retailer securing one million customers, Amazon, kept on progressing as the years go by. It got into the music and video business in 1998 and acquired some companies in England and Germany that same year; started to sell toys, electronic tools, and hardware in 1999; and finally, made some profit in 2001 (Press, 2004). 2- Compare and contrast the management approach each took to Internet marketing and sales. Most people would agree that a company’s success or failure has a lot to do with the way they conduct their business from top to bottom. For instance Henri Fayol, a managing director of a large steel company stated the following, “The success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability (Williams, 2010).” In this regard, it is important to try to understand the management approach of Borders and Amazon.com. The principle surrounding Borders’ success is due to its roots as an independent company focusing on strong educational values. First and foremost, Borders target a wide and complete variety of books and titles appealing to real readers and buyers (Borders Group Inc., 97). In addition to the comfortable setting allowing readers to enjoy their visit, its customers would find actively marketed document allowing them to always have an upgraded view of things. Secondly, the company shows its flexibility by trying to accommodate its environment (Borders Group Inc., 97). For instance, the setting of a store located near colleges may not be the same as that of an elderly neighborhood because of the fact that their interests are totally different. Lastly but not least, servicing the customer to the utmost has been the company’s motto. Thus, being proactive and responsive propels Borders’ management to be very successful despite the company’s previous set back. On the other hand, Amazon.com started its business online meaning their initial approach is to reach everyone. Despite not being profitable for more than five years, the company continued to invest in infrastructures. For instance, over $750 million were spent in state-of-the –art material in order to handle many new distribution facilities’ systems in the United States with similar investment to come in Europe (Amazon.com inc., 2000). Evidently, this is an approach of spending money in order to make more (Amazon.com inc., 2000). Also Amazon.com believes in...
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