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Some people have criticized the move. According to Business Insider, Piper Jaffray analyst Gene Munster estimates Amazon will lose $50 or more per tablet, once marketing and production costs are factored in. However, this short term loss could be a huge long term gain for Amazon. Let's look at some numbers.

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online shopping online shoppingThe reason, you inquire? The cost to ship and sale products online Amazon's charges will deny you of any benefit! There are great devices out there that can enable you to make sense of what to purchase and I'll cover what I've attempted and how I utilize the instruments in an up and coming post. is a pioneer in online retailing. The company debuts its website in 1995 and by 1997, the company went public. was the first internet retailer to consolidate one million customers and by 1997. entered the online music and video business in United Kingdom and Germany. In 1999, expanded its business model into selling toys, tools, amazon online shipping electronics and hardware (Mirow, Read full Report a store online 2005). During the last years of the twentieth century, the popularity of the internet, the World Wide Web, and personal computers pushed the growth of web browsers and internet providers. The use of the internet became prevalent in the society, and numerous companies started looking to the internet as a credible avenue for business. Amazon seeks to be "Earth�s most customer-centric company." The company serves two geographic segments and serves its primary customers who include consumers, sellers, suppliers and content creators. also provides services such as advertising and co-branded credit card agreements. The two major geographic segments that the company target include North America and international. serves its consumer through its retail websites and go directly to focuses on offering a wide selection of customers, low prices and convenience in service provision. The company seeks to offer the lowest prices to millions of its customers and cheap shipping offers and to improve its operating efficiencies to continue offering the lowest prices to customers. By 2008, Amazon had become a global brand with over 76 million active customer accounts and order fulfillment in over 20 countries globally. In 2007, the company launched Amazon MP3; al carte free MP3 music downloads that included over 3 million songs from more than 270,000 artists. The vision of the company is to focus relentlessly on offering the best customer experience by offering lower prices, a wide selection of products and convenience shopping experience.Yahoo Inc ( is one of the largest online network integrated service providers with a combined user base of over 500 million. provides a host of network-based services and has been existence for over 20 years. Jerry Yang and Filo David incorporated Yahoo in early 1994 as the internet service provider. However, click here. yahoo has evolved to be one the greatest online network integrated service provider (Baker, 2010). Yahoo went public in 1996, and its stock opened for Pop over to this site online store sites $ 13.00. In 2012, Yahoo rebranded its mission in an effort to revitalize its revenues. The mission statement changed to "connecting people to their passion, communities and world�s knowledge. Yahoo envisions to provide digital experience to all its customers so that they remain happy doing things on the web and to offer a unique way to advertisers to connect to customers. The core values of the company include excellence, innovation, customer fixation and teamwork. Yahoo main stakeholders include stockholders, and Yahoo�s the Web portal users, and advertisers.Success factors and strategiesAchieving customer loyalty and repeat purchases are key to Amazon�s success. According to Amazon 2013 SEC filing, the company achieves loyalty and repeat purchases by providing easy-to-use functionality, fast and credible fulfillment, timely customer services and a trusted transaction environment. The key features of its website include editorials and customer reviews; web pages tailored to individual customer preferences such as recommendations and notifications and secure payment system. Amazon�s website also offers content-rich pages including product reviews, client recommendations, wish lists and baby registries. Amazon offers free shipping for most of its online retailers to encourage increase basket size because customers have to reach a certain volume of purchase to achieving free shipping. Amazon focuses on customer�s satisfaction translate to excellence in service delivery. For example, in 2004, Amazon achieved American Customer Satisfaction Index of 88 scores that were at the time the highest ever customer satisfaction index achieved in any service industry. Amazon focuses on numerous customer satisfaction metrics. Each of its sites is monitored closely with standard service accountability, site availability, and high download speed. The company also has numerous internal performance service-level-agreements for its web services.Amazon growth is also attributable to its immense strategic acquisitions from 2000s to current years. In order to sustain its competitive advantage and revenue growth, Amazon has acquired a number of strategic companies. In early 2000s, Amazon acquired small specialized retail and IT firms. For example, Amazon acquired the Internet Movie Database (IMDB), an online company that hosts comprehensive lists of all movies. In addition, Amazon acquired, which is an online retailer that specializes in hard-to-find books titles and These acquisitions helped Amazon not only to increase the range of products but also helped Amazon to develop user-friendly search engines o improve customer experience. Amazon continued strategic acquisitions also fuel dominance in recent years. In 2008, Amazon acquired,, Reflexive Entertainment and In 2009, Amazon continued to acquire and in order to diversify its services to customers. In 2010, Amazon acquired,, and It also announced Amazon deals App, Amazon cloud player, and cloud player for android and Amazon Application store. In 2012, Amazon acquired Kiva systems, and Amazon publishing acquired Avalon Books. These strategic acquisitions have helped Amazon increase its market share, improve customer experience and improve its revenue.Amazon success is also attributable to its aggressive investment in information technology. The company has always been a pacesetter in terms of acquiring technology such as the recommender system, business intelligence systems, clouding computing and enterprise resource planning. The investment in technology has enabled the company to improve its convenience offering, reduce costs and improve customer experience.
Yahoo competitive advantage and success factors centers on making customer�s daily habit digital. The company focuses on improving customers� communicating, searching, sharing information and reading experience. The core values of the company that includes excellence, usefulness of its services, accessibility, integration and personalization of online services fuels its successful expansion. The company also has a customer-focused business approach. aims at providing effective, efficient and inclusive marketing services to their advertisers and publishers (Hill the company�s revenue had grown to $ 203 million. I n order to maintain the profitability of the company, Yahoo continued to invest in making its brand powerful. As a result, Yahoo dedicated resources to creating compelling news, shopping, and entertainment content by increasing its channels.Yahoo success is also attributable to its commitment to attracting and maintain customers. As a result, the company used customer lock-in and increased their switching costs of turning to a new portal. Consequently, Yahoo offered its clients the ability to customize Yahoo web pages and services to meet their specific expectations and needs. Nadera (2012) notes that the rapid adoption rate of Smartphone and mobile computing is threatening yahoo competitiveness. Most of its applications focus on desktop computers and laptops. In 2012, Mayer Merissa (CEO), refocused Yahoo to focus on research and design and design business intelligence to rejuvenate the success of the company. The CEO is also seeking strategic partnership with leading technology firms such as Apple and Google to improve the company�s competitiveness in mobile computing industry.
RecommendationsMobile computing is emerging as the new competitive edge for most online businesses. Yahoo and Amazon need to capitalize on this emerging trend through strategic partnership, acquisition and more investment in business intelligence. Amazon has been aggressive in mobile computing and business intelligence. However, there is an expanding market in its non-traditional target areas. As a result, the company needs to improve marketing strategies to reach a wider market that remain untapped in developing countries. The company needs to boost its reputation in these regions and offer services and products that suit these regions. On the other hand, Amazon needs to revitalize its marketing strategy and focus on improving customer experience. As a result, the current and future leadership need to invest in service diversification and rebranding of the company.Conclusion and are classical examples of pioneer e-businesses. They provide fundamental examples of how various online businesses make strategic decisions to succeed. The two companies show some similarities and differences in terms of strategies deployed to achieve competitive advantage. Their focus on customer satisfaction and service diversification and cost-leadership distinguish the two companies. Amazon is a cost-leader and aims at improving customer experience while yahoo focus on building a reputable brand. #nospin

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