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Bus 508 Compare and contrast the two businesses Amazon and Aol E Business

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Bus 508 Compare and contrast the two businesses Amazon and
Aol E Business
1. Compare and contrast the two businesses core business, their size,
financials, global presence, use of e- business (marketing, sales etc.).
Amazon.com
Amazon.com Inc. was founded in 1994 by Jeff Bezos and is
headquartered in
Seattle, Washington. “Amazon directly sells, or acts as a platform for the
sale of a broad range of products” (CrunchBase,2011). It started as an
on-line bookstore but soon diversified to product lines of VHS, DVD,
music CDs and MP3s, computer software, video games, electronics,
apparel, furniture, toys and lots of other things.
According to CrunchBase (2011):
Amazon.com Inc. is a leading global Internet company and one of the
most trafficked Internet retail destinations worldwide. Amazon is one of
the first companies to sell products deep into the long tail by housing
them all in numerous warehouses and distributing products from many
partner companies. . Amazon has direct operations in the United States,
Canada, France, Germany, Japan, and the United Kingdom.
(CrunchBase, 2011).
Amazon.com is a marketing web site which includes information about
products,
employment opportunities, financial information, and online selling.
Amazon.com saves time. It is possible to give an order at any hour of the
day or night. Also it allows to customers to register their credit card and
shipping information to make future purchases easy. So when they place
another order some other time, they need to use their username and
password instead of typing all their information again.
Time Warner’s AOL
In 1989, Warner Brothers merged with the publishing house Time to
Time Warner. Time acquired Warner for about US$14 Billion and
transformed it into a multi-media company consisting of record labels,

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motion picture as well as television production and distribution, studio
facilities and film libraries, television networks, book and magazine
publishing. In order to increase its product portfolio Time Warner
acquired Turner Broadcasting System in 1996 and hence became the
second largest cable television network. (Verma, n.d).
AOL is a company which was known as Quantum Computer Services
until 1991. “Quantum was renamed America Online through an
employee contest.” (About AOL: Overview, 2011). “The simple intuitive
interface and an aggressive marketing led the company to extremely
rapid growth in the late 1990s, fueled by a large number of acquisitions
and geographical expansion.” (Verma, n.d.) The reason for the merger
was allow each of the companies to get a piece of the Internet future
which each of the companies could not provide for individually.
According to Verma (n.d.),The merger will combine Time Warner's vast
array of world-class media, entertainment and news brands and its
technologically advanced broadband delivery systems with America
Online's extensive Internet franchises, technology and infrastructure,
including the world's premier consumer online brands, the largest
community in cyberspace, and unmatched e-commerce capabilities.”
2. Compare and contrast their outcomes (one successful, one
unsuccessful).
Amazon has approximately 137 million active customers worldwide. It
was also reported that there are 2 million merchants selling on Amazon
equaling a third of the total listings. North America currently represents
55.4% of sales with the other 44.6% in the International market.
(CrunchBase, 2011).
That is obvious that, Amazon.com use all the sources to be successful
well. It has been growing year by year.
“When the merger of AOL and Time Warner took place in February 2000,
the company, then called AOL Time Warner, was valued at $164 billion”
(Gardner, 2009). After the merge, they worked together almost 10 years.
“When it was spinning off, AOL was valued at $2.5 billion and Time
Warner at $36 billion.” (Gardner, 2009). “Today, as the two companies go
their separate ways, each is a smaller version of what it was a decade
ago, and each is still fighting the disruptions that new technologies have
unleashed on the media business.” (Arango, 2009).

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Bus 508 Compare and contrast the two businesses Amazon and Aol E Business 1. Compare and contrast the two businesses - core business, their size, financials, global presence, use of e- business (marketing, sales etc.). Amazon.com Amazon.com Inc. was founded in 1994 by Jeff Bezos and is headquartered in Seattle, Washington. "Amazon directly sells, or acts as a platform for the sale of a broad range of products" (CrunchBase,2011). It started as an on-line bookstore but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, toys and lots of other things. According to CrunchBase (2011): Amazon.com Inc. is a leading global Internet company and one of the most trafficked Internet retail destinations worldwide. Amazon is one of the first companies to sell products deep into the long tail by housing them all in numerous warehouses and distributing products from many partner companies. . Amazon has direct operations in the United States, Canada, France, Germany, Japan, and the United Kingdom. (CrunchBase, 2011). Amazon.com is a marketing web site which includes information about products, employment opportunities, financial information, and online selling. Amazon.com saves time. It is possible to give an order at any hour of the day or night. Also it allows to customers to register their credit card and shipping information to make future purchases easy. So when they place another order some other time, they ...
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