BUSINESS MODELS

Business Model



Comparison of Business Models

Introduction

In the tech-savvy world of internet and other technology, the online businesses carry great significance and importance in terms of both, functionality and profitability. Besides other websites providing academic benefits to the users for free, there are various book dealers and academic resource providers which work for the profit motive over the web platform. In this case study we will be comparing two booksellers one of which is providing online solutions and other is not using the technology to cater the needs of the customers.

Amazon

Amazon.com, Inc. is the largest web retailer in the online world. It is an American company dealing in electronic commerce on multinational basis and has its headquarters in Seattle, Washington, US (Jopson, Barney, 2011). The company is also engaged in the production of the consumer electronics—most prominently the Kindle e-book reader of Amazon and the Kindle Fire tablet computer—and is a chief supplier of the cloud computing services. The company possesses separate retail websites in many countries including the United Kingdom, United States, Germany, Canada, Italy, France, Japan, and Spain along with the provision of the international shipping to numerous other regions for many of its products. The company's website, Amazon.com, had initiated the business as an online bookstore; later, it adopted the diversification strategy by making CDs, DVDs, software, MP3 downloads, apparel, video games, electronics, food, furniture, jewelry and toys as a part of its sales.

Bookshelf

The Bookshelf is a local independent bookseller who is not operating online. This business is working in the tertiary sector of the business deals with the selling of books as a book retailer. Jill Male was the individual who established and owned the Bookshelf in the year 2008 as a sole trader. The business is owned and managed by the household and family and has its headquarters in the Fore street, Saltash, Cornwall. The company is based in the United Kingdom and is managed by Karen Dolman. It has a customer circle of around 77,000.

Business Models

The major customers of bookshelf bookseller include the potential and existing customers who are living in United Kingdom only. Unlike The Bookshelf business deals with the local people who, along with books, intend to buy tea cake and coffee too. The bookshop is considered as a meeting place and discussion forum. Besides the reading service, customers also need online advice regarding books and sometimes regarding other topics like tour guidance. ...