Essay on Amazons Vertical Integration

Essay on Amazons Vertical Integration Essay on Amazons Vertical Integration Essay on Amazons Vertical IntegrationThe marketing mix includes four essential components: product, price, promotion and place. Place denotes the approach to distribution and pertains to the methods of delivering the product or service to the target customers. The methods of distribution are shaped by the nature of the product or service, by technological factors, by the strategies of competitors, by the strategies of other participants of the supply chain or distribution chain, etc.In particular, there exist several distribution methods which include integration. The most frequently used methods are horizontal integration the inclusion of companies or business activities pertaining to the same level of the value chain, and vertical integration the integration of different levels of supply chain in one company or one union. The purpose of this paper is to analyze backward integration in publishing undertaken by Amazon, to review the facts of the battle between Amazon and Barnes and Noble, to discuss Amazons decision to get into publishing and to consider the perspectives of signing contracts with Amazon from the position of a well-known and a novel author.Key facts on the battle between Amazon and Barnes and NobleAmazon was one of the pioneers of e-commerce, and its department dealing with online sales of print books quickly became successful. Amazon paid a lot of attention to its book business and started investing into e-books and devices for reading e-books in order to attract the audience. Although Amazon clearly chose to focus on the segment of electronic books, it also entered the publishing segment and offered exclusive publishing services to the authors.Besides the bold decision on backward integration, Amazon also undertook several predatory marketing campaigns which were focused on directing customers from other book stores such as Barnes and Noble. In particular, Amazon offered an $15 discount for those customers who visited traditional bookstores and used Amazon price check app to purchase print versions of the necessary books in Amazon (instead of purchasing the books at the store they were visiting) (Hertner, 2012).Although Amazon managed to drive customer interest, publishers and book retailers united in a protest against such practices (Hertner, 2012). The companies also protest against Amazon tax protection: the company is allowed not to pay taxes across the United States because it has no physical presence in the states with sales tax (Hertner, 2012). Furthermore, Barnes and Noble made a public statement calling authors to avoid agreements with Amazon since such agreements strengthen Amazons monopoly and threaten to undermine the whole publishing industry (Turner, 2012).Despite the united efforts of publishers and book retailers, Amazon is clearly winning the game. Barnes and Noble reports that the sales of electronic and printed books are decreasing as well as the sales of electronic devices and accessories (Gelles, 2 014). The revenues of Barnes and Noble are declining, and the Nook department of Barnes and Noble is no longer able to compete with Amazon Kindle devices and the variety of tablets and smartphones available at the market. Barnes and Noble is planning to use the services of third-party manufacturers to upgrade its Nook line of e-readers or to sell the department to G Asset Management (Gelles, 2014). Although Barnes and Noble managed to optimize costs and therefore increase the overall profits despite the drop in revenue, the prospects of brick-and-mortar bookstores are not very optimistic. At the same time, Amazon is actively pursuing its vertical integration strategy and growing the market of electronic books and e-readers.Assessment of Amazons entry into publishingAmazon started as online retailer and its major competitive advantage was formed by the benefits caused by early entry into the industry (Krug, 2012). At the same time, Amazon quickly expanded its presence in innovative m arket segments. One of these segments was the publishing segment. Amazon started offering publishing services to authors and focused on selling both printed and electronic versions of books. From the authors perspective, such idea is fruitful as it allows to gain access to a large audience and helps to target both the fans of printed books and the new generation of readers who prefer e-ink devices for reading.Amazons conditions are exclusive and the authors might be unable to publish their books with other publishers. In this way, Amazon manages to eliminate intermediaries and therefore decrease publishing costs. Furthermore, Amazon receives the opportunity to capitalize on publishing books and strengthens its supply chain. At the same time, Amazons exclusive publishing conditions result in the weakening of other publishers and book retailers and in the strengthening of Amazons market position. Therefore, vertical integration is highly beneficial for Amazon as it helps the company t o expand the market of e-books and at the same time to retain its leadership in selling printed books.Author choices in different situationsFrom the perspective of a popular author of childrens fiction, it might be not very beneficial to sign a contract with Amazon since this company requests exclusive rights, and a popular author might want to choose more beneficial contracts with other publishers in the future. Furthermore, book retailers and publishers often boycott Amazons printed books and therefore signing a contract with Amazon might limit access to readers audience for a popular author. Therefore, it would be reasonable for a popular author to reject Amazon offer and to retain the relationships with the traditional publisher.In the case of a new author working on a first book it is best to accept Amazons offer because of several reasons. First of all, it is difficult for beginning authors to attract the attention to traditional publishers because of numerous procedures and r equirements as well as competition in this sphere. Every publisher also targets a particular audience and it is hard for a new author to choose the right publisher and to win the contract. In Amazons case, the risks for a new author are lower and the author can quickly gain access to a worldwide audience (especially in the case of electronic books).Conclusions and recommendationsThe development of technology has dramatically changed distribution channels in the publishing industry. The dynamics of the recent decade shows that the sales of e-books are increasing and the sales of print books are declining (Trachtenberg, 2014). Amazon is the global leader in selling e-books while the sales of Barnes and Noble are declining (Trachtenberg, 2014). However, there are specific categories of print books the demand for which is growing or keeps at the same level: these are textbooks, books for entertainment (detectives, fiction), books for children and illustrated books such as recipe books ( Herther, 2012).The major strategic advantage of Barnes and Noble is its brick-and-mortar chain of stores. At the same time, this chain of stores incurs significant costs. It is recommended for Barnes and Noble to track the categories of print books the demand for which is still high, and to optimize its store layout to offer only these categories of books available for instantaneous purchase. Other categories of books should be sold in online store of Barnes and Noble.Furthermore, to stay in the publishing business, Barnes and Noble needs to keep in touch with technology. In this context, acquisitions of new technologies might be helpful for the company if these technologies can enhance reading experience. Currently Barnes and Noble can improve its market position if the company focuses on delivering ultimate reading experience and empowering it with technology. The company made a bold move by introducing Nook reader, and it would be efficient to empower this device with break-throu gh technology. In any case, Barnes and Noble should focus on online distribution of print and electronic books, and use its brick-and-mortar stores in combination with its digital strategy.

Minor v. Happersett - Womens Voting Rights Denied

Minor v. Happersett - Women's Voting Rights Denied On October 15, 1872, Virginia Minor applied to register to vote in Missouri. The registrar, Reese Happersett, turned down the application, because the Missouri state constitution read: Every male citizen of the United States shall be entitled to vote. Mrs. Minor sued in Missouri state court, claiming her rights were violated on the basis of the Fourteenth Amendment. Text of Fourteenth and Fifteenth Amendments After Minor lost the suit in that court, she appealed to the state Supreme Court. When the Missouri Supreme Court agreed with the registrar, Minor brought the case to the United States Supreme Court. Fast Facts: Minor v. Happersett Case Argued: Feb. 9, 1875Decision Issued: March 29, 1875Petitioner: Virginia Minor, a female U.S. citizen and resident of the state of MissouriRespondent: Reese Happersett, St. Louis County, Missouri, registrar of votersKey Questions: Under the 14th Amendments Equal Protection Clause, and the 15th Amendments assurance that voting rights must not be denied or abridged ... on account of race, color, or previous condition of servitude, did women have the right to vote?Majority Decision: Justices Clifford, Swayne, Miller, Davis, Field, Strong, Bradley, Hunt, WaiteDissenting: NoneRuling: The Court ruled that the Constitution  did not grant anyone, specifically female citizens of the U.S., the right to vote. The Supreme Court Decides The US Supreme Court, in an 1874 unanimous opinion written by the chief justice, found: women are citizens of the United States, and were even before the Fourteenth Amendment passedthe right of suffrage the right to vote is not a necessary privilege and immunity to which all citizens are entitledthe Fourteenth Amendment did not add the right of suffrage to citizenship privilegesthe Fifteenth Amendment was required to be sure voting rights were not denied or abridged ... on account of race, color, or previous condition of servitude in other words, the amendment was not necessary if citizenship conferred voting rightswomens suffrage was explicitly excluded in nearly every state either in the constitution or in its legal code; no state had been excluded from joining the Union for lack of womens voting rights, including states re-entering the Union after the Civil War, with newly written constitutionsthe US had made no objection when New Jersey explicitly withdrew womens suffrage rights in 1807arguments about the need for womens suffrage were irrelevant to their decision s Thus, Minor v. Happersett reaffirmed the exclusion of women from voting rights. The Nineteenth Amendment to the US Constitution, in granting suffrage rights to women, overrode this decision. Related Reading Linda K. Kerber. No Constitutional Right to Be Ladies. Women and the Obligations of Citizenship. 1998

Ethical analysis on a contemporary issue in the news Essay

Ethical analysis on a contemporary issue in the news - Essay Example Goldman Company is not an exception to this because; it has been in several occasions engaged in shoddy business. The company is seen as a greedy, with the sole intention of making money, and allowing its managers to acquire large wealth in the process leading to the creation of a negative image. The company is among other companies on Wall Street that are engaged in several business operations, and managed to overcome the storm of the financial crisis, and still doing well despite the challenges facing the company in relation to ethics. The role of the company in ensuring that it collects a lot of money is visible from the inception. The company, Goldman Sachs began in 1869 as a humble company with the sole purpose of clearing for commercial paper. The company founded by Marcus Goldman, and his son in law Samuel Sachs began as a loan provider for small banks. Later the company was influenced with the market environment thus moved from the set idea of the founders to start of the one-on-one loans. The company due to the method of operation led to the market crash of 1929. Despite the negative contribution, the company managed to overcome the negative image and continued to become a greater company with increased revenue and capital. The company engaged customers in making money leading to the development of a new strategy of operation, which created a chance for the company to raise more capital. The approach employed in the system was to create an investment company buys 90% shares. In buying 90% of the investment company shares, Goldman drives the share prices up, and because the shares have been bought by the company. In response, the buyers rush to buy the shares of the company which the Goldman sells at a price higher than the initial buying price. In such case, the company becomes a broker and has defied the honesty issue in business ethics. Goldman by conducting such businesses raises a lot of money. The money

The determinants of the rate of interest and the significance of Essay

The determinants of the rate of interest and the significance of interest rates to policy makers and other economic actors - Essay Example It is described as interest in percentage of the amount of funds borrowed. This is a simple explanation of the rate of interest. Let's review some definitions of the rate of interest to comprehend the concept (Unit 3). Bannock et al has defined the rate of interest as the price a borrower has to pay to enjoy the use of cash which he or she does not own, and the return a lender enjoys for deferring consumption or parting with liquidity (1998:346). According to Mike Moffatt, "The interest rate is the yearly price charged by a lender to a borrower in order for the borrower to obtain a loan. This is usually expressed as a percentage of the total amount loaned". (http://economics.about.com/cs/economicsglossary/g/interest_rate.htm). Thus, interest rate is the annually charged in percentage on the principal. Interest is derived by dividing the amount of interest by the amount of principal. Inflation and the government policies play a crucial part in bringing fluctuations in the interest rates (www.investorwords.com/2539/interest_rate.html). It is pivotal to know that although each bank decides its interest rates by its own on the loans sanctioned but actually local rates are almost same in different banks. When there is inflation, interest rates go up because of increased need of credit, tight money market, or for the reason that banks' need to maintain a higher reserves. Any of the reasons affect the business activity and the stock market as well. Businesses in need of funds have to pay more for the same amount of borrowing and the investors would prefer to invest in bank deposits or newly launched bonds than purchasing shares (http://www.businessdictionary.com/definition/interest-rate.html). Determinants of interest rate levels Parameters of interest rates (Upton, 2009) are defined by supply and demand when the supply of money is equal to the desire of economic entities to borrow. Further, it is important to know the factors that affect supply and demand. Since interest is a pay back for delaying consumption, a higher rate of interest will accrue in more supply of funds. We can say that in different circumstances an interest rate may not result in same supply of funds. In different countries people don't have the same concern for consumption, as one can perceive that there are different savings rates. When economic conditions are not stable, people are more induced to save, as seen in their behaviour during "depression generation". Demand (Upton, 2009) on the contrary, depends on the availability of investments. At the low interest rates investments provide more margins. With the positive growth environment and technological advancement, demand for investment will boost. Other things that impact future growth are rate of increase in population, labour force, and education and skill standards. On the whole economic environment and production environment determine the level of demand for funds. The interest rate is (Upton, 2009) determined by the economic and other factors causing increase in the capacity of consu

The relationship between work and life has become a key feature of Essay

The relationship between work and life has become a key feature of much current government, practitioner and academic debate - Essay Example However, issues revolving around the work – life phenomenon have recently achieved a wider social implication since the unconstructive consequences that culminate on account of the augmented incapacity on the part of the employees, which restrict their quest of striking a perfect balance between work and life, are becoming more and more palpable within the highly industrialized Western societies. In order to achieve a work life balance it is mandatory for organizations and individuals concerned to affirm that strategies and policies concerning organizational working needs of the employees be more comprehensive and must include the need to assimilate diverse perspectives such as principles, approaches and values held within and by organizations, individuals and societies and of the manner in which their interaction envisages the capability to accomplish a personal work - life balance. The pursuit for an idyllic means of combining the habitually contradictory spheres of work and private life has engaged scholars and practitioners for decades. However, the debate has deepened and gained momentum over the years to become a "hot topic" under the banner of work - life balance. The concepts of work life balance and work life boundary have gained wide spread popularity in the recent times and have been widely defined by a range of authors, researchers and theorists. Some of the key definitions of the two terms are mentioned below. Clutterbuck, (20031) defines work life balance as: "A state where an individual manages real or potential conflict between different demands on his or her time and energy in a way that satisfies his or her needs for well - being and self - fulfillment" It also refers to the state of being aware of the different demands on an individuals time and energy, the ability to make appropriate choices in terms of the manner in which one choose to allocate his or her time and energy, knowledge of the values

Multiphoton Excitation for organic complex Essay

Multiphoton Excitation for organic complex - Essay Example wo photon absorption active; but, it is not guaranteed that they will exhibit interesting and useful three photon absorption properties such as frequency up-converted lasing [10]. Based on this reason, our University Department of Chemistry Prof Ricky Wong Man Shing and his student Dr.Xin Jiang Feng have developed and synthesized a new set of organic complexes p-PhN-OF(n)-TAZ n = 2 to 6 from deep investigation and collection of fundamental information and applications such as multi-photon properties and multi-photon cavityless lasing etc. The most important aspect is that it can let us explore and understand the more Physics behind the discovery. In this chapter, am going to analyse the use of p-PhN-OF(n)-TAZ series for a set of nonlinear optical experiments to verify the multi-photon properties. The p-PhN-OF(n)-TAZ series are type of D-ï  °-A using oligofluorenes (OF) as a ï  ° conjugated core end capped in which D is the end capped with the electron – donating diphenylam ino group and the unconventionally employed electron-deficient 1,2,4-triazole (TAZ) derivates as an acceptor designed and synthesized for multiphoton absorption investigation [10]. The electron was pushed from Donor (D) to pull side of Acceptor (A) in the ï  °- conjugation system which is called intramolecular charge transfer. In addition, the size of length of conjugation is related to enhance the cross section value of two-photon absorption and three-photon absorption [11]. Unless, the value of cross section is reach to saturation level. Under fig 4.1, the linear absorption spectra of the organic materials p-PhN-OF(n)-TAZ series (n = 2 ~ 6) was dissolved in Toluene solution, the series exhibits the two absorption peaks characteristics. The weak absorption peak appears around 300-310 nm attributed to the nï‚ ®Ã¯  °* transition of triarylamine moieties and the broad absorption band spanning from 378-415 nm corresponds to the ï  °Ã¯â€š ®Ã¯  °* transition of fluorene-based ï  °-conjugated core. The

Strategic Management in Tourism, Sports and Event Case Study

Strategic Management in Tourism, Sports and Event - Case Study Example Sports industry has grown considerably due to the growing interests related to games, health and fitness. Focusing on this aspect, the case study intends to reveal ways of doing business in light of increased environmental concerns for a popular sport organisation namely Manchester United Football Club. Besides, the case study also discusses various growth strategies that can be used for Manchester United to expand the business. Corporate Social Responsibility In the context of strategic management, corporate social responsibility (CSR) is significantly influencing the business at an alarming rate. CSR is linked with core business objectives and core competencies and it can provide positive financial yields for Manchester United along with facilitating it to create a positive environmental impact in the world (McElhaney, 2009). New Ways of Doing Business In current business context, environmental problems such as climate change create an impact on every aspect of the economy and sports industry is no exception. Sports business is potentially an environmentally sensitive segment and is likely to be impacted by climate change. In present days, there is an increasing awareness about certain environmental issues such as greenhouse gas (GHG) emission, carbon emission, energy consumption and waste management among others (The Higher Education Academy, 2008; Carroll & Shabana, 2010). CSR Initiative Optimal for Manchester United The corporate trend towards CSR signifies substantial prospects for Manchester United to capitalise on pervasive demands of sports along with the financial strength of the business (Manchester United Limited, 2011). In order to understand the most optimal CSR initiative for an organisation, first there is a need to make an internal analysis such as SWOT. Appendix 1 and 2 shows the SWOT analysis of Manchester United and the SWOT analysis with the aid of Weighting/Ranking System. Concerning the internal aspects of Manchester United, it can be stated that the organisation possesses a number of ways for positioning the CSR strategies. For instance, it can make progression towards accomplishing profit objectives by of its involvement in sport related or spectator services along with developing partnerships with other organisations in an attempt to advance CSR programs (Smith & Westerbeek, 2007). Clear CSR Leadership Position In order to be comp etitive in present day’s business environment, organisations must constantly innovate and observe the activities of the competitors. Manchester United has corporate responsibility to ensure safe and healthy atmosphere and is committed to maintain sound environmental performance by constant maintenance of environmental management system (Akesson, 2010; Breitbarth et al., 2011). Strategic Group Analysis of Sports Industry Strategic group is a concept which is used to classify groups of organisations within similar industry, having similar business models (Reger & Huff, 2010). The following figure will show the strategic groups in the United Kingdom sports industry with reference to football segment. Aspects such as extent of branding and number of market segment served have been used for demonstrating the strategic group of Manchester United. According to the above figure, the key competitors of Manchester United in the Asian market are Arsenal Holdings plc, Chelsea and Liverpo ol Football Club (Henry, 2008). Arsenal and Chelsea have focused on Asian participation being through academies and programs while Liverpool is focusing on Indian market for opening of its own academy (Chelsea, 2013; The Arsenal Football Club Plc, 2011; Eurosport, 2013) Growth Strategy for 2014 to 2015 Business growth for an organisatio