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Bus-Adm 799 Sample case Amazoncom The purpose of the following is to assess Amazoncoms place in the current specialty retail industry through both financial and non-financial analysis As computer technologies have been developed the population of Internet and World Wide Web has raised fast sine 1990s In this situation many firms have launched or expected to start their business through the Internet Sales products of the Internet business have become various and widely Online buying is growing at an amazing rate Therefore companies that do Internet based business have great opportunities to succeed However the competition is greater and threats are all around I have identified several key factors that play an important role in the success of your company These key factors are the specialty retail industry the most significant competitors and their actions of concerns the companys resources and capabilities and how your company stands financially Industry Analysis The US is the worlds largest market for books However the book publishing is still fragment Because of the fragmented industry of books high percentage of publishers sales occurs through the wholesalers The percentage however has been decreased due to emergence of superstores such as Barnes Noble and Borderscom The leader of retail book business is Barnes Noble The superstores are directly supplied more than 95 percent of books from publishers Therefore the stores usually sell their products with discounted price because they can reduce intermediates such as wholesalers The sales growth rate of the superstores is 71 while those of non-superstores rate is only 4 Moreover many independent stores have gone out of business because of the aggressive attack of superstore-chain The growth rate of Internet bookstores such as Amazoncom Barnes Noble Borderscom is very high According to self-report of these Internet bookstores they are growing almost 25 to 35 percent a month The book chains spend a lot of money in real estate inventory and operation expense but the
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