Morgan Stanley
Case 1. AMAZON.com
Kim Dong Kyun
1. How has amazon’s entry shaken-up retail book supplychain?
Traditionally, The book industry is the chain of “publisher-wholesalers-retail bookstores”.
However, Amazon.com made this chain or supply useless. At amazon.com, unlike traditional bookstores, there are no bookshelves to browse. All contact with the costomer is either through its web site or by email. At the firm’s web site, customers can search for a specific book, topic and etc. Customers can browse, fill up a virtual shopping basket, and then complete the sale by inputting their credit card number. Customer’s orders are processed immediately. Books in stock are packaged and mailed the same day. When their order has been shipped, customers are notified by email.
The firm’s seattle and Delaware warehouses are used to stock popular books items, and to consolidate and repack customer orders. Moreover, only after the firm receives a paid customer order does it request the appropriate publisher to ship the book to amazon.com
The firm owns little expensive retail real estate and its operation are largely automated. Its distribution center in Delaware, for example, uses good technology to consolidate and package books for shipment.
2. Compare retailers and e-tailers on several dimensions. Who has the advantage on these dimensions?
Book
Retailer
Typically retail bookstores, independents and general retailers
There are four largest bookstore chains and with the increasing growth of these superstores, smaller market shakeout was inevitable
e-tailer
There are several type of e-tailers
First mail order, it is witnessing a significant drop because of the growth of large discount-sale retailer
Second Virtual Book Store, it is have been growing but has industry skepticism and concern
Last one is real “e-tailer” on internet like amazon.com. because of their
Convenience and discount, they grow rapidly
Music CD
Also consist of retailer, e-tailer
Kim Dong Kyun
1. How has amazon’s entry shaken-up retail book supplychain?
Traditionally, The book industry is the chain of “publisher-wholesalers-retail bookstores”.
However, Amazon.com made this chain or supply useless. At amazon.com, unlike traditional bookstores, there are no bookshelves to browse. All contact with the costomer is either through its web site or by email. At the firm’s web site, customers can search for a specific book, topic and etc. Customers can browse, fill up a virtual shopping basket, and then complete the sale by inputting their credit card number. Customer’s orders are processed immediately. Books in stock are packaged and mailed the same day. When their order has been shipped, customers are notified by email.
The firm’s seattle and Delaware warehouses are used to stock popular books items, and to consolidate and repack customer orders. Moreover, only after the firm receives a paid customer order does it request the appropriate publisher to ship the book to amazon.com
The firm owns little expensive retail real estate and its operation are largely automated. Its distribution center in Delaware, for example, uses good technology to consolidate and package books for shipment.
2. Compare retailers and e-tailers on several dimensions. Who has the advantage on these dimensions?
Book
Retailer
Typically retail bookstores, independents and general retailers
There are four largest bookstore chains and with the increasing growth of these superstores, smaller market shakeout was inevitable
e-tailer
There are several type of e-tailers
First mail order, it is witnessing a significant drop because of the growth of large discount-sale retailer
Second Virtual Book Store, it is have been growing but has industry skepticism and concern
Last one is real “e-tailer” on internet like amazon.com. because of their
Convenience and discount, they grow rapidly
Music CD
Also consist of retailer, e-tailer