KSBM – Would you buy an item on Amazon.com? Why or why not

Would you buy an item on Amazon.com? Why or why not 

Would you buy an item on Amazon.com? Why or why not


General Management


Case : 5

Amazon, the largest online retail company in the United States, was founded by Jeff Bezos in 1995. The name Amazon was chosen in reference to the Amazon River, one of the largest rivers in the world. The company started as an online bookstore, but later added CDs, DVDs software,  electronics,  apparels,  toys,  food,  and  a  variety  of  other  products.  Besides operating in the United States, the company also has websites in Austria, Canada, China, France, Germany, Italy, Japan, and the United Kingdom. Over the years, Amazon made many acquisitions such as Bookpages. Co.uk, an online book company, BookSurge, a print-on- demand firm, Shophop , a retailer of designer clothing and women’s accessories, and Zappos, an online retailer for shoes and apparel. Amazon also has rather interesting partnerships with other companies such as Target, Timex, Lacoste, and many others.

One well-known product is kindle which is a wireless e-book reader but does much more than reading books. It allows for downloading newspapers and magazines, blogs, and other media. There are several Kindle products available, ranging from the mainline to the large- screen DX line. The DX is especially suitable for reading textbooks or magazines. Kindle books can be downloaded on a computer. In 2011 Amazon sold more Kindle books than printed books’’ Using the ‘’Kindle for PC’’ program allows for purchases using a personal computer or even an iPhone or iPod Touch.

Many of Amazon’s sales are derived from third-party sellers, called ‘’Amazon Associates’’ and third party sellers. The offices, called fulfillment centers, are located throughout North America, Europe, and Asia, They are often near airports which enhances speedy delivery.

Amazon has its critics and complaints ranging from patent infringement, price discrimination, anti-union efforts, and libel, to the publication of questionable books. One current issue pertains to the collection of U.S. sales taxes on the sales of its products. The tax is collected in only a few states in the United States. Brick-and –mortar stores, on the other hand, have to collect sales taxes and they consider the Amazon.com advantage as being anti-competitive.

Late in 2011, Amazon unveiled the Kindle Fire tablet computer which some consider a competition to the iPad. The Kindle price of $199 is substantially lower than the iPad 2 which  starts  at  $499.  Therefore,  the  Kindle  Fire  tablet  may  be  appealing  to  those consumers looking for a less expensive alternative to the iPad 2. Magazine publishers welcome the Kindle Fire as an alternative to the iPad. Amazon has the advantage of Apple that it not only sells music, videos, books and other items, but it also sells toys, clothes, appliances, and many other items-an advantage for Amazon.

Amazon is a success story. The company that had a humble beginning in 1995 has grown to become the biggest online retailer in the United States.


1: Why was Amazon successful?

  1. Would you buy an item on Amazon.com? Why or why not?

  1. Do you prefer reading a book, including a textbook, on the Kindle or do you prefer the printed text? Give your reasons.

  1. Do you think that the Kindle Fire tablet computer is a challenge to Apple’s iPad? Why or why not?

Would you buy an item on Amazon.com? Why or why not

Would you buy an item on Amazon.com? Why or why not

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