Amazon.com | |

Summary

Introduction. 3

The kindle, star product of Amazon. 4

Porter’s five forces 7

Conclusion 9

Choose any one sector affected by Amazon and analyse the impact of the rise of Amazon.

The book industry grew fast during 1970’s and 1980’s. Jeffrey P. Bezos’ vision, founder of Amazon was creating the world’s biggest one place-shopping bookstore. (In Durkin, MA, Kass, C, Modi, T & Ulin, M 2000) Thanks to its core values Amazon.com is a successful company. Amazon’s core values are a very good customer service and goods convenience and price. Amazon.com sells books on internet and has its own distribution system. Prices are lowest than in a store thanks to the absence of operations like inventories… On the book market which weigh 4 billion (£), the e-commerce represents 8% (320 million) in 2009. And Amazon catches more than the half.
The increase in sell is more substantial than others sectors like multimedia pole or traditional bookstore.
With the evolution of the technology, the risk is to replace the paper book by some electronic machine.
But the question is: what is the impact of the rise of Amazon on the book market?
To begin with, I’ll introduce the Kindle, the Amazon’s star product; explain its influence, year after year, on the books’ market.
In a second part, I’ll analyze Porters five forces to see where the market’s power is and where Amazon has to be careful.

The kindle, star product of Amazon.

Last month, Nicholas Negroponte, leader of the One Laptop per Child Foundation and founder and former chairman of the Media Lab at the Massachusetts Institute of Technology, told his audience in a conference that printed books would be “dead” within five years.
He has taken for example the fact that Amazon, the pioneering online bookseller sold more electronic than hard cover books.
Why? Because of the new Amazon’s product: “the Kindle”.

“Amazon Kindle is a portable e-book reader. More