International Business
What were the reasons for going online for the sale of books
Case Studies
CASE STUDY (20 Marks)
Amazon, a successful ecommerce company was founded in 1955 by Jeff Bezos, in Washington. It began operating with only one book sales store. Now it extends to a very wide range of other products, including DVS, music CDs, computers, electronics, clothing, furniture, etc. The founder of Amazon took full advantage of changes in technology. Since a number of publishers and titles were existing and there was a poor structure of the traditional books market, the idea of setting up an online virtual bookstore thatgave the biggest choice of products to the world came forth In addition; Amazon developed a client’s interface to seek the consumer’s experience for improvement and maintained a data base to know more about its customers. Amazon acquired most of its online music store rivals and started marketing online as well as offline. Amazon launched the innovative and bold marketing strategy to provide customer with free delivery service and free shipping service. Amazon’s objective was to maintain its free and
fast delivery policy even at low profit margins. The price of Amazon online products generally reduced by about 10%.Therefore out of 40 million customers, 30% customers was online customers. For this reason Amazon founder confidently declared “Perhaps consumers will go to physical store shopping, but certainly not because of the price”.
Answer the following question.
Q1. Give an overview of the case..
Q2. What were the reasons for going online for the sale of books?
CASE STUDY (20 Marks)
In 2008, Starbucks announced that they would be closing 600 US stores. Up to that point, Starbucks stores had added new offerings, including wifi and music for sale, but started to lose I s warm “neighborhood store” feeling in favor of a chain store persona. Harvard Business Review points out that in this situation, “Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special.” Meaning, in order to keep up, Starbucks would either have to cut prices, or cut down on stores to restore its brand exclusivity. HBR’s case study shares three problems with the growth of Starbucks: alienating early adopters, too
broad of an appeal, and superficial growth through new stores and products. Harvard recommends that Starbucks should have stayed private, growing at a controlled pace to maintain its status as a premium brand.
Answer the following question.
Q1. Do you agree with Harvard recommendations? Give reasons in support of your answer.
Q2. What are the advantages of keeping bonded stores? Explain.
CASE STUDY (20 Marks)
MTV Networks (MTVN) had over the years developed a reputation for its ability to provide localized content without diluting what MTV stood for. However, the company faced the most challenging test in late 2007 with its launch of MTV Arabia in the Middle East, which some experts considered as the biggest launch in the channel’s history. While the market in the Middle East offered MTVN with huge opportunities due to its huge youth populace, MTV’s controversial content that was known for angering religious, political, and conservative communities could easily backfire in the conservative environment prevalent in the region. On the other hand, too much localization to suit the tastes of the region could dilute MTV’s global brand. The strategy adopted by MTVN to enter and expand in the Middle East was not so conducive and also the channel faced many challenges.
Answer the following question.
Q1. Explain the issues and challenges in entering and expanding operations in new markets which were culturally
different from the organizations home/traditional/existing markets.
Q2. Discuss the pros and cons of entering a new market with a standardized/adapted product to suit local preferences.
CASE STUDY (20 Marks)
Another important retirement issue is one of lost knowledge. What happens when retirees leave the office, taking years of experience and know how right along with them? Businesses lose all of that knowledge, but according to American Express, it doesn’t have to be that way. Through a pilot program, AMEX created a workforce transformation group that would allow retiring participants to gradually give up some of their day to day responsibilities. In return, the employees would spend some of this time mentoring and teaching classes to successors. This resulted in a phased retirement, allowing employees to leave gradually and enjoy more time while still enjoying a portion of their previous salary, and regular benefits. This also meant that some employees stayed a year or more past traditional retirement age. AMEX believes this program is a success, allowing senior employees to enjoy their last years of work in a reduced capacity, as well as educating the existing workforce for future success. Consultant David De Long agrees, citing this program as an example of how job handoffs should really work.
Answer the following question.
Q1. What are the issues involved with retirement of the employees?
Q2. In your opinion how the smooth handing over of responsibilities can take place.
What were the reasons for going online for the sale of books
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