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Comparing Two Similar Businesses - Essay Example

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Adaptability to changing market situations is another factor that would influence an organization’s long term sustainability. This paper will…
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Comparing Two Similar Businesses
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Download file to see previous pages Initially, the company commenced its operations as an online bookstore. Bezos adopted an unusual business plan initially and he did not expect a profit for first four to five years. Even though this ‘slow growth’ plan caused dissatisfaction among its stakeholders, it assisted that company to survive the dot-com bubble burst successfully. Finally, the company earned its first profit in 2001. Currently, is the largest online retailer in the world and it deals with a range of product lines including DVDs, CDs, MP3s, video games, software, electronics, furniture, food, jewelry, apparel, and toys (Kindle: The world’s best selling e-reader).
Like; Borders Books, a US based company, was known for its dominance in international book and music retail sector. The company was founded by brothers Tom and Louis Borders in 1971.Later in 1996, a sister company called Book Inventory Systems was founded to support the operations of Borders Books. Initially, the Borders Books began its operations with used books and progressively it expanded the business. Although the Borders Book had been successful since its establishment, the company started to experience profitability declines since 2004. Although books and music were the core business of Borders Books, it also dealt with other business areas such as magazines, board games, encyclopedias, zunes, calendars, and gift packs.
While analyzing, it is obvious that the company adopted Customer Relationship Management and Information Management tactics to promote its internet marketing and sales. In contrast, the Borders had not focused on a specific management approach to enhance its internet marketing operations. Borders Books just tried to increase its sales volume rather than ensuring customer satisfaction. Evidently, this difference in management approach assisted Amazon to survive all market difficulties whereas Borders Books filed for bankruptcy in 2011.
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