MANAGEMENT

Business Management

Business Management

Background of the companies

Amazon

Aamzon.com is a multinational Internet company based in United States. It is one of the most trafficked websites globally, and is one of the first companies to sell products by housing them in warehouses, and distribute products on behalf of several partner companies. Amazon is involved in selling products directly or providing a platform for selling a wide range of products. Amazon sells is known for offering products such as books, videos, clothing, music, and household and consumer electronics. Amazon was founded in 1994 by John Bezos. Amazon's headquarter is in Seattle, Washington (Chamberlin, 2009). The company is said to be named after the river of Amazon, which is said to be one of the largest rivers in the world. It initially began as an online book store, but soon diversified and started selling CDs, DVDs, videos; computer software etc. Amazon has established itself in a number of countries such as Italy, Canada, China, France, Germany, Japan & United Kingdom. It also provides shipping facilities in many countries and charges for it (Byers, 2006). Amazon is a pure play Internet retailer and maintains no bricks and mortar retail locations. Neither does it sell its own brands through other retailers as a general rule (www.duncanwil.co.uk).

Borders Books

Borders book is said to be established by borders group subsidiary in the year of 1998 and then in the year of 2007 it eventually became independent Company. It was acquired by Luke Johnson in a deal worth £20 million. At its peak that is when it was making maximum profits it was then that it traded 41 borders as well as 28 books in totality. It then had a brick and mortar model and covered around 8 percent of the book selling market in terms of the market share. Late in the year of 2008 and 2009 the number of stores was reduced before the chain collapsed. It is also said to operate a branch in Ireland but ironically it closed in the year fo2009. In the year of 2009 all the stores of the brand closed. The branches were sold because of financial difficulties. The branches of the brand provided more augmented services in terms of having a Starbucks café as well as the PaperChase stationery however that did not contribute towards building a customer base. The basic products that this brand sold were books. In the year of 2008 it also opened an ecommerce website as it was an attempt to acquire back the lost market share as well as compete with it competitors. It came up with a new beta testing which aided the website in running smoothly which was soon also closed down.

Comparatively Amazon sold more product families as well as the product lines. It dealt with all kinds of products on the other hand Borders only sold books solely.

Comparing and Contrasting

Amazon and Border both made use of the emailing marketing strategy that is they made use of emails to reach to the customers ...