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Compare and contrast - Assignment Example

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About that same period, Amazon was beginning to expand its online bookselling business into a wider ranged enterprise—it began selling music, videos, toys, and just…
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Compare and contrast

Download file to see previous pages... powerful customer base, great expertise in recommendation software, and opportunities to market through cross-selling” (Furtado, Grosman, & de Souza, n.d., p. 2).
Despite its failure to dominate the net, Microsoft still has much strength to sustain competition. Aside from being the most globally recognizable brand, it has a diverse and talented workforce, a good reputation as an employer, and its own online network division (Hafner & Hibert, 2001). Although they have different strengths and products, Amazon and Microsoft share the same market which makes competition inevitable. However, both companies can fare better if they cooperate. First, it would increase the exposure and scope of Amazon products. Secondly, it would provide Microsoft with more assets (e.g. in music retail) and prevent companies like Apple from dominating their respective markets. More importantly, Amazon and Microsoft are more like complimentary companies than competitors. For example, Microsoft could provide the software to Amazon’s Kindle (Perlow, 2010).On the part of the consumers, however, such partnership may not be beneficial. As in traditional trade, online commerce can be monopolized. Monopolies can dictate the online market to their advantage, just as in the case of Google whose “new formats…increase expenses for advertisers” (Edwards, 2010). Scenarios like that would trigger a domino effect that would eventually burden ...Download file to see next pagesRead More
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