Student name: Marcelo Chabes
Student number: 3783
Class: MKT 1
Assignment 1 - Compare the E-Business strategies of TWO companies.
Case study chosen:
Amazon.com X Submarino.com
Firstly let’s talk about Amazon Inc. which is an American e-commerce company in Seattle, Washington. Amazon was one of the first major companies to sell goods by Internet, and was an iconic "stock in which to invest" of the late 1990s dot-com bubble. Launched on line in 1995, Amazon.com started as an on-line bookstore, but soon diversified to product lines from DVDs to Furniture has defined the wide business where the on line store were making business. Amazon.com nowadays has operations in Canada, UK, Germany, France, China and Japan. If required, it also provides global shipping to certain countries for some of its products.
RELEVANT INFORMATION- Amazon’s reputation, business type, internet presence and market saturation
Submarino.com was launched in 1996 by a partnership between 3 of actual Submarino’s managers and join foreigner venture capitalists. They didn’t start from nothing; they bought participation on Booknet, one of pioneer on line book stores of Brazilian market. At that time, Booknet already has a cart of 50 thousands of customers and 4 years of on line experience on their portfolio. Since 2007 they are partners of Americanas.com, consolidating their on line leadership on selling goods. The Submarino.com web site still is running, but the partnership built the B2W Group. This group is composed by Americanas.com (Real World Store + on line Store which sells goods), Submarino.com, ingresso.com (On line sales of concert, cinemas, football matches, theater tickets etc), Blockbuster (DVD Rental stores) and Shoptime.com (TV Advertisers + on line sales). The promise is about this group will align the strategy and converge all businesses, creating a strong multichannel business.
RELEVANT INFORMATION- Submarino’s reputation, business type, internet presence, market saturation and goal
Of course Submarino.com is much smaller than Amazon.com. But the main objective of this comparison is criticize which e-Business model is more effective, and understands its advantages and disadvantages.
EXCELLENT INTRODUCTION – the Candidate has chosen companies that are good for comparison - similar businesses (online bookstore), market saturation and online presence. He presents these companies in a clear and interesting way, but I would’ve liked to have heard about Amazon’s goal. The Candidate also shows an awareness of SWOT analysis by looking at the advantages and disadvantages of each company’s strategy.
About the services provided
Studying Amazon’s e-Business, I got myself surprised with a lots of services provided to their customers. So to organize it better I made one list of these services:
1. Selling on Amazon: Where you can sell your stuff, benefiting yourself by millions of eyes watching Amazon.com each day. 2. Kindle Store: Amazon’s new wireless reading device (e-Book reader). With this device you can purchase books and start reading it immediately. Anywhere with Wireless internet access. 3. Amazon MP3: MP3 Download store.
4. Honor system and donations: Where you can collaborate on line for charities or another types of non-profitable organizations. 5. Amazon Prime: Free 2-day and discounted priority shipping for yearly USD 70 fee. 6. Amazon web services: Offer of administration tools to manage an on line store, based on Amazon.com knowledge. 7. Amazon S3: Storage service. If you have a website and would like to rent a storage data, you can buy it from Amazon.com as well. 8. Product collaborative wikis: People can give their opinion about products. 9. International Shipping: Amazon.com helps you to find the best shipping solution to you deliver your sold product on time. 10. Gift Cards: If you wish to gift someone but you don’t know what to buy for it, you can...
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