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
Brian Flood, Soe Hlaing, Wei Qian, Isabella Schambeck, Teo Tertel, Lauren Vang
VS.
THE DIGITAL DIVIDE
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
• 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
Borders Diagnostics
DefenderInternational
ManagerFactory
EffectivenessLocally Stormy
• Founded in 1994 by Jeff Bezos– Plain and simple site
• Create “online community”
Amazon.com Background
“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
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
• 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
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
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
• 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
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
Goals
Effectiveness
Efficiency &
Effectiveness
Strategy
Exploitation
Exploitation & Exploration
Environment
Locally Stormy
Varied
BORDERS
AMAZON
Borders vs. Amazon BDO Model Comparison
DefenderInternational
ManagerFactory
EffectivenessLocally Stormy
Borders Misfits
Defender
EffectivenessLocally Stormy
ProspectorMulti-Domestic
Leader
InternationalManagerFactory
Borders Misfits
Defender
EffectivenessLocally Stormy
Office
ProspectorMulti-Domestic
Leader
InternationalManagerFactory
Borders Misfits
EffectivenessLocally Stormy
Office
ProspectorMulti-Domestic
Leader
Fit for the Future
• Partnerships with Travel Services– Preparation for travel or while in transit– Reinforce “HQ for knowledge and entertainment”
Recommendation #1
• Become THE distributor of eReaders & eBooks– new consumer trend for digital media– eBooks and eReaders already available
Recommendation #2
Questions?