Amazon Case
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Amazon.com is one of the leading retail websites in the world. The purpose of this paper is to determine whether or not Amazon has lost its identity by expanding its product base beyond the original focus of book, and make recommendations on how Amazon can protect its brand. I will also make some recommendations for Barnes & Noble and Borders that will help them to recapture online market share. In addition, I will consider whether or not Amazon will expand its customer base by offering retail locations in addition to their website. Finally, I have included a chart to compare the different factors of the websites for Amazon, Barnes & Noble, and Borders including functionality, design, content, originality, professionalism, and effectiveness.
Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books.
I do not feel that Amazon has lost its identity by expanding into markets beyond just books; on the contrary, I think that Amazon has enhanced their identity. They started by selling books, and expanded to meet the varying needs of the consumer. According to James Kouzes, a company is performing at its peak when something new or different is tried (Kouzes, 2008). Amazon took that theory and ran with it. By offering products other than books, they have become the internets largest retailer (Kurtz, 2011, p.223). They have become a “one-stop shop” company, which is convenient for customers all over the world. They have affordable prices that compete with other retailers. They offer free shipping on all orders over $25, and guarantee delivery within 5-8 business days. Most importantly, they have a large supply stock, which allows orders to be delivered in a timely fashion. In addition, Amazon offers services such as Amazon web services (which offers a variety of products and services such as business development, shipping, networking, payments & billing), co-branded credit cards, and other marketing and promotional items (Amazon.com, 2009 Annual Report).
Recommend what Amazon should do to protect its brand.
I do not feel that Amazon is in any danger of losing its brand, but there are a few ways for them to keep it as successful as they have. First, continuing to keep prices low is a key factor. They are competitive and fair. I looked up the same book series (the Twilight Saga) on all three websites (Amazon, Barnes & Noble, and Borders) and the prices for new hardback versions were respectively: $52.29, $53.95, and $77.60. I noticed that Barnes & Noble was close in the price they offered the book collection at, so I tried another title (In Cold Blood) and respectively, the prices were: $15.64, $16.56, and $23.00. Again, Amazon and Barnes & Noble were close in price, but Amazon is still able to keep the price lower. Another way to protect its brand is to keep the supply on hand. It is near impossible to predict what people will want or need at any given time, but by keeping up on current trends is important. In addition to just current trends, I have noticed that Amazon usually has obscure items in stock. My part-time job is at a video store (which just so happens to be loosely affiliated with Barnes & Noble), and there are many times that we are unable to get out of print movies from our warehouse. I have directed numerous customers to Amazons website, because I know from personal experience that they have some of those titles that are extremely hard to find, and they do not charge an outrageous price for these items, which they could if they so chose. A final suggestion to protecting its brand would be to look into the possibility of opening retail stores. I am a little surprised that Amazon has not tried this already. I will discuss my thoughts on this topic in detail later in this paper.
Recommend what Barnes & Noble and Borders should do to recapture some of their online market share.
There are many things that Barnes & Noble and Borders can consider when trying to recapture some of their online market share. The first, and probably most important, would be to lower their prices. The above noted price comparison is a great example of why someone might make their purchase with Amazon rather than Barnes & Noble or Borders. Another suggestion would be to consider their shipping prices. All three sites are currently offering free shipping on all “qualifying” orders. Amazon and Barnes & Noble offer free shipping on orders of $25 or more, while Borders offers free shipping on orders of $40 or more. To get the edge, they could lower the minimum purchase requirement for free shipping. Another suggestion could be to enhance the layout of their websites. To me, aside from the color scheme, Barnes & Noble and Borders have a very similar design layout. It appears “cookie cutter” to me. They both have similar featured items, both have top purchased books, and both sites have an “exclusive” interview with John Grisham that is only available at their site; in fact, he is wearing the same outfit for the video on both sites. An additional suggestion is to increase their selection and supply. As I mentioned above, the company I work for part-time is loosely affiliated with Barnes & Noble, but I know from experience that, unless it is a popular new book, their supply is often out of stock, and that is why I tend to refer customers to Amazons site. I cannot speak personally about Borders, as I have only been in their stores – which are smaller than Barnes & Noble – a few times, and have never visited their website with the intentions of purchasing anything. A final suggestion for Barnes & Noble and Borders could be a monthly emailed coupon to be used either in-store on online. I currently get a monthly email from a clothing store that I frequent