Bus302 - Comparing the Management of Amazon.Com and Borders Books

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their website that was entitled, “Customers who brought this item also brought”, in which this helps a customers see that others have also brought a item similar to the one they just purchase or is looking for. For example a customer could purchase an Xbox 360, and then also purchase games or an extra controller while still online. The third way is with the invention of the Amazon kindle, this device alone helped revived their market economy and it also increased the sale of e-books as well.

To be very honest the reason for Borders’ rise was simple in the beginning they had advanced and created their online website, and loyalty reward program. The first main reason was that as the years went by their stock falling all the way down to $12.28 a share. In which after that the stock closed down with them losing about $157.4 million alone in 2007. The second reason they failed was that they put the company up for sale, and then took out a loan from Pershing Square Capital Management for about $42.5 million, and that was just them trying to boost the financials from where they were currently at or located. The third and final reason for Borders’ failure is that they failed to keep up with the fast paced world of technology such as the development of the e-readers and kindle; they also did not get to the e-book development until late as well.

To be very honest when Borders’ did not change with the market or the continuous changing technology world, they set themselves up for failure from that very moment. In order to keep up with the other businesses they should have started changing & developing devices, new features everything. Amazon succeeded to be successful in this because as the market and technology changed, they adapted changed realizing and seeing that they would benefit and produce more revenue in their company. For example the Amazon Kindle by Amazon and then for example the Nook developed by Barnes & Noble.

The recommendation that I have for business leaders today is make your company flexible for change, include your employees when it comes to do some strategic planning this goes for when developing a new and improved product or making changes to a current on. Also this would help even if you wanted to increase your profit by lowering the price of some of your products and all of this would increase their market shares simply because people would be buying more products.

References

Bomey, Nathan. (2011) Borders rise and fall: a timeline of the book 40-year history.

(ArborAnn.com) Retrieved on July 23rd, 2012 from

http://www.annarbor.com/business-review/borders

Brandt, Richard L. (2011) Birth of a Salesman. (The Wall Street Journal). Retrieved on July 23rd,

2012 from

http://online.wsj.com/article/SB10001424052970203914304576627102996831200.html

Engleman, Eric. (2010) Jeff Bezos: PSBJ Executive of the Year. (Puget Sound Business Journal)

Retrieved on July 23rd, 2012 from

http://www.bizjournals.com/seattle/print-edition/2010/12/24/jeff-bezos-psbj-executive-of-the-year.html