Barnes and Noble vs Amazon Essay Example | Topics and Well Written Essays - 1500 words

Barnes and Noble vs Amazon - Essay Example Amazon goes global Bezos, who invented Amazon Company, has been always fought against negative predictions, which outlined that the Company should have bankrupted in 2001. Jeff Bezos claims that he is a very happy person and he likes managing his personnel. Bezos readily takes risk and he thinks that it is important to avoid risk in any enterprise. Amazon had a challenging situation and a difficult financial situation in 2002 showed that it suffered $3 billion operating losses. Currently Amazon plays a leading role in online market practices. Starting from 1994 book sales market was not overcrowded by the competitors. Amazon gained one of the leading roles in the market at that time (Isckia 334). Jeff Bezos has always been focused on sales increase, but not only financial gains interested him, but also a high-level satisfaction of the customers gained. Advertising in printed media and on TV were the most saving tactics for Bezos and his company. Innovative practices of many businesse s are on the way of their fast development and Amazon illustrates their ability to be a sound competitor in the modern market of book sales. Nowadays Amazon is providing â€Å"wider selection, lower prices and fast, reliable delivery† (Joshi & Yermish 2000, p. 18). ... Bezos has been always focused on long-term profit gains and he did not focus on near-term profitability.  An individual-centered approach was chosen by Amazon as the most reasonable policy. It was very important for products' differentiation and price policy to pay attention for every individual. Amazon was on the way of innovative development. Thus, it took into account opportunities opened by the Internet. Products availability on the web was one of the main concerns for the Company. In the result of Company's going virtual, it has experienced the following positive changes: traffic improved goods availability on the web; Amazon promoted a market share; financial losses of the Company were decreased; cash flow operation was significantly improved; profitability was one of the main concerns for the company; Amazon gained a position of a profitable business. Amazon can be distinguished by the following factors: â€Å"price, selection, availability, convenience, information, discov ery, brand recognition, personalized services, accessibility, customer service, reliability, speed of delivery, ease of use and ability to adapt to changing conditions† (Kargar 2004, p. 102). Currently, retail sales of Amazon are rather diverse: from selling DVDs, videos, electronics, camera and photo items, cell phones and services, tools and hardware, software, video games, kitchen and house ware products (Whittaker 2004, p. 24). It is possible to claim that Amazon exceeds the limits of a traditional book seller. Initially this Company intended to occupy a position of a successful bookseller, but with a course of time the world's leading position in different spheres of trade were occupied by Amazon too. Jeff Bezos shows a