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Strategic management amazon

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  • 1. Bright star group
    Adel FhmyFatma El Essaily
    Ramy Aamer WaleedSherwella
    Mohamed Aamer
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    1
  • 2. Yasterday & Today
    This story of how giant bookseller deal with independent one’s to own the market war.
    Clicks and bricks
    - This was 11 year’s ago but Now. It’s the giant player’s war
    - Let’s see what’s going on…!
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    2
  • 3. Industry Analysis Barnes and Noble VS Amazon.com
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    3
  • 4. This case provides an analysis of the book selling industry and the positions Amazon and Barnes and Noble held within it.The book selling industry changing rapidly.
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    4
  • 5. Barnes and Noble
    • He established four bookstores on campuses in New York City.
    • 6. In 1971 he bought B&N.
    • 7. With the purchase of B.Dalton 1987, B&N became the largest bookseller in the United States (797 Store).
    • 8. Early 1990s Riggio decided to do something different to match superstore concepts “Built scene of community”.
    Lenny Riggio
    Horowitz* says Barnes & Noble has
    contributed to “Homogenizing America's tastes.“
    *Writer of LOST TV Series
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    5
  • 9. Amazon
    - Jeff Bezos founder of Amazon.com
    • Amazon.com opened online in July 1995
    • 10. 1997 the company went in public (Value $560 M in 1st day)
    • 11. 1998 start the reinvent process (sell music online)
    • 12. 1999 Amazon obtained a patent for its one-click technology
    • 13. 1999 Not Just selling Products ,but, selling the attention to other internet retails , and services to others.
    Jeff Bezos
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    6
  • 14. THE INDUSTRY
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    7
  • 15. THE INDUSTRY
    1-Substituts
    • There were numerous alternatives to spending time in a bookstore. People could go to a movie, the theater, or a concert
    2- Customers
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    8
  • 16. 3-Competitors
    • The competition among booksellers was intense.
    • 17. Independent bookstores had been losing market share to chains.
    • 18. The usual purchase at a superstore was about twice that of a purchase at a mall-based store.
    • 19. The Number of superstores jumped rapidly.
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    9
  • 20. 4-Suppliers
    • Publishers sold books in two ways - through wholesalers and by direct sales.
    • 21. The publishers tried to supply the chains directly. Under a consent order the publishers signed, they agreed not to give chains like Borders and Barnes and Noble higher discounts than independent retailers, but suspicion still existed that they favored the chains.
    It been casted in “You’ve Got Mail”
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    10
  • 22. 5-NEW ENTRANTS
    - The main new entrant into this industry was online booksellers.
    - Still, B&N was the undisputed champion of bookselling. When Amazon.com opened online in July 1995, B&N paid little attention. Instead it focused on its-commitment.
    - To continued expansion. The key competitive challenge the company faced was to open new stores quickly.
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    11
  • 23. Barnes & Noble
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    12
  • 24. Amazon.com
    Dr.Nezar Nabil Sami Information Technology and Competitive Strategy
    13
  • 25. Amazon & BN In Fact
    Dr.NezarNabil Sami Information Technology and Competitive Strategy
    14
  • 26. Dr.NezarNabil Sami Information Technology and Competitive Strategy
    15

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