borders vs. amazon: comparative analysis of organizational design influences
DESCRIPTION
Project objective is to apply course concepts to understand how an organization\'s design influences its performance and to draft a proposed change to enhance the company\'s performance.Comparative Analysis of SWOT and TOWS, Company Diagnostics, Force Field Analysis, and Recommendations for Borders.TRANSCRIPT
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Brian Flood, Soe Hlaing, Wei Qian, Isabella Schambeck, Teo Tertel, Lauren Vang
VS.
THE DIGITAL DIVIDE
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Borders Background• “To create richer, more satisfying lives
through knowledge and entertainment”• Founded 1971• 508 stores/20,000 EES• 2008 – Borders.com• Waldenbooks• Company Performance
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• Strength + Opportunity– S = Experts in book industry– O = Partnerships w/ travel services
• Weakness + Opportunity– W = Don't have an eReader for eBooks– O = Digital book provider
• Strength + Threat– S = Community gathering place– T = Increased funding for libraries
SWOT / TOWS
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Borders Diagnostics
DefenderInternational
ManagerFactory
EffectivenessLocally Stormy
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• Founded in 1994 by Jeff Bezos– Plain and simple site
• Create “online community”
Amazon.com Background
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“To be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online."
Vision
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2008 2009 2010
Revenue (profit) 4.27B 5.53B $299M (Q1)
Sales 19.17B 24.51B 7.13B (Q1)
ROA 7.76 6.53 8.74 (ttm)
Market Share 61%
Company Performance
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• Founder, President, Chairman of the Board and only CEO
• Forward-thinker, Innovative
• “Sharp-witted”
“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might
regret is not trying.” – Jeff Bezos
Jeff Bezos
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Internal Strengths Internal Weaknesses
1. Online user experience2. Market leader3. Large variety of products4. Innovative proprietary products5. Brand recognition6. Prices7. Secondary market8. CreateSpace print-on-demand publishing9. Strong CSR
1. Limited preview2. All orders must be shipped3. Online only accessibility4. Vendor relationships5. Inventory risk
External Opportunities External Threats
1. E-Books2. Educational book agreements3. Growth
1. Rising fuel prices2. Poor economy3. New technology4. Competitors5. Rapid expansion6. Security7. Government regulations
SWOT Analysis
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TOWS Matrix External Opportunities (O) External Threats (T)
Internal Strengths (S) SOExclusivity agreements with publishers
STRewards program for buyers
Internal Weaknesses (W) WOElectronic books (PDFs)
WT
TOWS Analysis
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• Goals: Efficient & Effective– Unique experience shopping online– Low price leader
• Strategy: Analyzer with Innovation– Exploiting all resources possible– Innovated developments, such as the Kindle
• Environment: Varied – Seasonal sales– Technology– Foreign fluctuations
Amazon Diagnostics
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Shared Attributes
Unique Customer Experiences
Brands & Reputations
Digital Media Market
Emerging Threats
Distinct Attributes
Space Utilization
Overhead Costs
Business Models
Innovation
Data Security
Shipping Dependencies
Borders vs. Amazon SWOT/TOWS Comparison
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Goals
Effectiveness
Efficiency &
Effectiveness
Strategy
Exploitation
Exploitation & Exploration
Environment
Locally Stormy
Varied
BORDERS
AMAZON
Borders vs. Amazon BDO Model Comparison
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DefenderInternational
ManagerFactory
EffectivenessLocally Stormy
Borders Misfits
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Defender
EffectivenessLocally Stormy
ProspectorMulti-Domestic
Leader
InternationalManagerFactory
Borders Misfits
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Defender
EffectivenessLocally Stormy
Office
ProspectorMulti-Domestic
Leader
InternationalManagerFactory
Borders Misfits
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EffectivenessLocally Stormy
Office
ProspectorMulti-Domestic
Leader
Fit for the Future
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• Partnerships with Travel Services– Preparation for travel or while in transit– Reinforce “HQ for knowledge and entertainment”
Recommendation #1
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• Become THE distributor of eReaders & eBooks– new consumer trend for digital media– eBooks and eReaders already available
Recommendation #2
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Questions?