The application of Economic Theory

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Amazon is being driving in growth by the design n technological innovation; they are able to offer customers different types of products at a lower price. In 2000 they began to offer its best-of-breed e- commerce to other retailers and to individual sellers. So today Amazon has over 2 million small businesses, world-class retail brands and individual sellers that increased their sales. In 2006 Amazon launched Amazon Web Services (APP) it exposing key infrastructure service to businesses in form of web services and now it’s known as the cloud computing.

In 2007 they introduced the Kindle it was a revolutionary portable reader and you will be able to download books, Gaines, newspapers, blobs, and personal documents. The Kindle as a high resolution electronic, that looks and reads like a real paper. The Kindle Fire tablet was introduced in 2011 it had combined 15 years of innovation to a fully integrated end to end service for the customers. The Kindle Fire was the most successful product launch in the history of Amazon, it earned 10,000 5 star customer review (Amazon, 2013). The core business for Amazon is it has grown from an online bookseller to a virtual retailer.

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Customers can purchase anything that they like from books, toys, food and electronics at a lower price Cones, 2013). Yahoo Inc. Started in 1994 as a hobby by its two founders Jerry Yang and David Fill. The two founders gradate from Stanford University and they created Jerry and Dive’s Guide to the World Wide Web this was a simple guide for people to navigate the internet. Within a short time thousands of people located the website and found it to be a time saving to help them find the most useful sites. The two founders continued to work on get the site organized and they rename it “YAHOO! . The founders struck a deal with Sequoia Capital a Silicon Valley firm that supported high tech companies (Jones, 2013). In 1995 Yahoo was in report and is Delaware incorporation. On April 12, 1996 Yahoo completed a public offering and was list on the NASDAQ Global Select Market under the symbol “YAHOO. ” The headquarters are in Sunnyvale, California they have offices in more than 30 countries, regions and territories. In 1996 there were 18 Yahoo portals that were being used in 12 languages that are operating outside the United States.

Yahoo is a global technology company that is making the worlds daily habits entertaining and inspiring. There are more the 800 million users that will search for digital magazines, communications, and videos that will be ordered by Flicker and Tumbler (Yahoo, 2014). Determine the key strategic differences that have impacted the relative success of both Amazon. Com and Yahoo. Com. Provide two (2) specific examples of such strategic differences to support the response. Amazons goal was to become a leader in online retail industry.

The two things that they did were to offer the customers free shipping and have deals of the day. They purchase small retail companies so they can increase opportunities and sales so they can add to their storefront. Amazon offers service to small and medium sign businesses so that they can provide service to the customers. So as time went on Amazon took over and some of the companies were forced to close down (Jones, 2013). Yahoo goal was to make their services more valuable to its uses and advertisers so they can increase in advertising revenues.

Yahoo was offering the user’s selection of internet services to create switching cost and brand loyalty for free (Jones C. W. , 2013). Compare and contrast the approach to strategic planning that each company has pursued in order to achieve a competitive advantage. Focus specifically on both intended and emergent strategies. Amazon mission states that “Earth’s most customer-centric company”‘ (Jones C. W. , 201 3) for three customers groups is consumer customer, seller customer and developer customer.

They are a technology company that their expertise is to sell more goods of services that will satisfy the customers and have the profit growing. Bozos is a very hand – on and he works long hours and works with his employees to find solutions to any problem. Amazon has used an opportunity to host other companies for a fee (Jones C. W. , 2013). Yahoo generates revenues by renting advertising space on their web page. Yahoo hired marketing experts to strengthen the company’s advertising function. The two founders took responsibility to improve the search engine.

To increase the reach and usefulness they hired more software engineers. There are three product divisions that Yahoo is focusing on one is to find better ways to to service the need of the advertiser, to satisfy the need of the website users and develop new technology Cones C. W. , 2013). Analyze the manner in which each compass distinctive competencies help to shape the strategies that each company pursues. Provide a rationale to support the response. Amazon began to sell books at discount prices. They are continuing to improve the speed of the internet.

So as time went on Amazon worked on growing the business by adding new ventures, like CDC, DVD, Software, Kindle, retail, and grocery. Bozos realized that Amazon IT would be a profitable to go into other countries to sell books. They offer the largest selection of books that have been written, theirs 1. 5 million plus books. Amazon focuses on hiring and retaining talented employees so that they can continue to grow Ones C. W. , 2013). Yahoo started by having a Web portal and organizing websites. As time went on Yahoo acquired the internet shopping portal and they continue to develop it technology.

Yahoo continue to introduce new online service, they worked very hard to stay on top. The founder of Yahoo Jerry Yang he worked on streamlining the company by proportioning the companies that they are working with and advertising competences. He reduces the workforce to cut cost (Jones C. W. , 2013). Recommend one (1 ) functional level strategy for each company which prescribes the essential ways in which each may achieve superior efficiency, quality, innovation, and customer responsiveness. Provide a rationale to support the response. Amazon is doing well but they have to which out for the competitors.

So the functional strategy that I feel would be of great use is the marketing strategy because of the internet being so competitive it is very important to have a good marketing team. With both companies they have to be on top of their IT team and have the update technology Cones C. W. , 2013). Yahoo need to keep up with the change in time. When they first stated they were the leaders in the internet world and their revenues are dropping. There are several things that they need to work on like marketing, financial, and human resources. So the strategies that I feel that Yahoo need are research and development, marketing,

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