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Yahoo and Amazon: Building a Competitive Advantage - Case Study Example

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This study "Yahoo and Amazon: Building a Competitive Advantage" discusses strategies and business structures that have determined the differences in success between Amazon and Yahoo. The study analyses the distinctive competencies that shape Amazon and Yahoo!…
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Yahoo and Amazon: Building a Competitive Advantage
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Download file to see previous pages According to the company, it attracts more than 500 million consumers each month. There is a variety of the company’s source of revenue. Advertisements have become the key to the sustenance of almost every online business. Yahoo offers graphical advertisements, text-based links to advertisers’ sites and so on. Other than the ads, Yahoo users may be allowed to access services such as internet broadband, premium mail, music, and personals offering, and so on. In advertising, an ad is normally placed on any yahoo or affiliate website and if an interested buyer clicks the ad, yahoo is supposed to receive some revenue from the owner of the ad.

Amazon.com, Inc., on the other hand, is the largest internet-based retailer on the planet. Jeff Bezos founded the company in 1994. It has grown to generate revenue amounting to the excess of $74.45 billion. With an operating income of $745 million by the year 2013, the corporation has total assets averaging US$ 40.15 billion and a net income of US$ 274.0 million (Milberg, 2013).

Amazon.com Inc. started as an online bookstore but later diversified to the selling of VHSs, DVDs, CDs, MP3 streaming and downloading software, electronics, furniture, apparel, video games, jewelry, and so on. Currently, the company produces consumer electronics such as the famous Amazon Kindle e-book readers, Fire Phone, Fire Tablets, and Fire TV. The company offers cloud services too.

The online presence of the company is huge; it also has several separate retail websites for the United Kingdom & Ireland, the United States, Canada, The Netherlands, Germany, Australia, Brazil, Japan, Mexico, France, Spain, and so on.

Initially, the founder had named the store ‘Cadabra’ but less than a year later changed that to Amazon.com based on the fact that he felt the name amazon would bring about more profitability as a name starting with ‘A’ appears at the beginning of every alphabetized list.
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