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Comparing Two Similar Businesses - Assignment Example

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Comparing Two Similar Businesses Name of of Institute Borders Group, Inc. a public owned retail book store was the nation's second largest retailer of books, music, and other educational, informational, and entertainment products…
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Comparing Two Similar Businesses
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Download file to see previous pages With the passage of time, it grows from just a book store to a super store that offers its customers a relaxing and comfortable environment to linger, and also provides ubiquitous espresso bars. The Borders Group expanded internationally beginning with a store in Singapore 1997, and then eventually expanded to more than 40 stores in Europe, Asia and Australia/New Zealand (About.com, 2011). With the advent of information era, things changes globally; it’s the era of internet. Many new companies emerge on the face of internet, offering products at competitive prices; present a threat to brick and mortar store. So borders recognize the need of the hour that they could not survive by just being a brick-mortar company, hence they created their online presence in 1998 (Reuters, 2011). Amazon.com is an American based e-commerce company that was pioneer in online business. The company is based in Seattle, Washington and was founded by Jeff Bezo in 1994 (web hosting report.com, 2011). The primary focus of the company is to become a leader in online bookstore and to achieve this goal, the company offers a very different experience from a regular bookstore; it allows book writers to write book reviews about their books, which greatly adds to Amazon success. And now it became the largest internet sellers of media in the world today, and has expanded its selections to include clothing, beauty products, house wares, and thousands of other items. Borders however were late in embracing e-commerce as they entered the cyber world in four years after Amazon.com; by just offering online website. It was not a success for the company as market was monopolized by the Amazon, who had been serving customers for four years and had established a trustworthy place in the consumer’s mind. Borders had been lacking skills that were required to do internet marketing i.e. it announced a deal with Amazon.com Inc to re-launch its e-commerce site. In 2008, Borders finally established its own e-bookstore, and made partnership with Kobobooks.com to facilitate its eBooks sales. To retain its customer it further offers free Wi-Fi almost in all its stores and start providing self-publish facility to its customers (About.com, 2011). Key success factor in internet marketing and sales is attractive and user friendly interface; which amazon.com initially lack i.e. amazon start was shaky. But by injection of more capital; it offers a better looking website and hosting capabilities. Being pioneer and new entrant in the online book selling industry, Amazon demonstrated innovation, impressive management and creativity to get it registered in online business. Its company’s core business strategy to make online experience easy and user friendly and for this very purpose they introduces a very secure credit card processing system and 1-click ordering system; which proved helpful in achieving its mission. To acknowledge Amazon efforts in innovating a unique online ordering system; the U.S. Patent Office awarded its 1 click technology Patent No. 5,960,411 on September 28, 1999 (Amazon.com, 2011). Amazon management also made some useful decisions like changing its location to avoid additional sales tax; changed headquarters that made it close to largest books wholesalers. Another unique feature that Amazon offers to its customer includes the use of personalization tool that allowed it to offer unique storefront for every individual customer, according to their needs. Amazon, ...Download file to see next pagesRead More
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