Topic: Comparison of Two Businesses

Abstract

The following research paper compares the businesses of Amazon.com, the world's leading online book site and Borders Bookstores, which due to its inefficient decision making steps saw its down fall in the period of recession. We shall discuss the reasons of Amazon's success and Border's downfall briefly while discussing the management approach both employed. We shall also discuss how flexible decision making helps business and how businesses who are termed as achievers in the market adapt to the changing marketing environments.

Table of Contents



Abstract2

Introduction4

History & Core Businesses4

Management Approach Employed5

3 Reasons of Amazon's Success6

3 Reasons of Border's Downfall7

Adapting to the Changing Marketing Conditions8

3 Ways to Build Flexibility in the Decision Making Process9

Finding the Problem9

Evaluating the Options9

Innovative Thinking & Adaptability10

Conclusion10

Introduction

History & Core Businesses

Amazon.com

Amazon launched its business in 1995 by Jeff Bezos. The owner's reasoning behind its launch was to be part of the Internet Boom of the 90s. Jeff wrote his business plan for Amazon, expecting not to make a profit for the initial five years. It was in 2001, when Amazon made a profit. From its inauguration to date, Amazon's central business is an online store which sells books, CDs, DVDs, computer software, video games, electronic appliances, clothing, furnishings, foodstuff, and toys. Over the last 13 years Amazon has acquired several online companies that aided in expanding the brand. At present Amazon also owns a column of E-readers named Kindle.

Borders Bookstore

Borders Bookstore was set up in 1971 by brothers Tom and Louis Borders. It was a bookstore series that run Borders superstores and Waldenbooks Retail segment stores. Forty years back, when Borders launched its foremost store in Ann Arbor, Michigan, the book industry was a diverse place. Though it was a bookstore, but years down it turned into a versatile entertainment retailer. In the 1990s, it spent tremendously on CD sales. In that era, instead of buying CDs people began purchasing iPods. Hence, Borders downfall began with expensive retail space, which added stress on its business model. Borders ended into the verge of bankruptcy during the period of recession (Zappone, 2012). .

Management Approach Employed

Amazon.com

Amazon works backwards from the client, rather than launching an idea for the product and bolting it onto the customers. This approach can be applied to any product decision, and especially when developing new products. A product manager usually begins by writing an internal press release revealing the new product. Internal press releases are based around the customer issues, how the existing solutions failed, and how the innovative product will drive away solutions at hand.

If the benefits listed do not excite the customers, then possibly they should be thought over again. The product manager will then keep updating the press release until the benefits actually excite the customer. This approach is easier and less expensive than updating the product itself (Spector, 2000). 

Borders Bookstore

As far as Border's management approach is concerned there were a series of unfortunate decisions taken that resulted in the permanently undermined position of the company's position. Borders end was absolutely sourced by management ...