BUS210 Assgn 1
Tiffany Simpson
April 13, 2015
BUS 210
Assignment 1
Case Study 1 & 2
Instructor Divya Kashyap
t.simpson3@students.clark.edu
Case 1 Amazon.com
1:
Toys "R" Us sales exceeded $300 Million by 2004 on the Amazon.com site. In about 200 words explain how Amazon, Toys "R" Us, and other toy sellers who participated in Amazon's Marketplace retailer program benefited from the network effect as a result of the relationship between Amazon and Toys "R" Us.
Toys "R" Us and other toy sellers who participated in Amazon's Marketplace retailer program benefited from the network effect as a result of the relationship between Amazon and Toy "R" Us in many ways. Since Amazon has network deals with companies there will always be a benefit or a profit. A lot of times people go on Amazon looking to buy many different things and to have the ability to one stop shop for most everything that you will need comes in handy and at a reasonable price. Also, with Amazon having the ability to only sell toys from people who are in the retailer program helps both parties. Toys "R" Us had encountered many problems selling toys online before joining Amazon Marketplace program and I feel that without the help of Amazon there could be many business that would have a problem selling their items.This also works for the small businesses and specialty businesses that have things to offer that you may not be able to find anywhere else or that they may be having a hard time selling. If that business is a part of the Marketplace Program not only do their items get sold but Amazon and the business owner get a profit.
2:
In 2004, Toys "R" Us sued Amazon.com for violating terms of the agreement between the companies; specifically, Toys "R" Us objected to Amazon.com's permitting Amazon Marketplace retailers to sell toys. (Note: when the lawsuit was filed Amazon Marketplace was called "zShops".) Amazon.com responded by filing a countersuit. After more than two years of litigation, a New Jersey Superior Court
April 13, 2015
BUS 210
Assignment 1
Case Study 1 & 2
Instructor Divya Kashyap
t.simpson3@students.clark.edu
Case 1 Amazon.com
1:
Toys "R" Us sales exceeded $300 Million by 2004 on the Amazon.com site. In about 200 words explain how Amazon, Toys "R" Us, and other toy sellers who participated in Amazon's Marketplace retailer program benefited from the network effect as a result of the relationship between Amazon and Toys "R" Us.
Toys "R" Us and other toy sellers who participated in Amazon's Marketplace retailer program benefited from the network effect as a result of the relationship between Amazon and Toy "R" Us in many ways. Since Amazon has network deals with companies there will always be a benefit or a profit. A lot of times people go on Amazon looking to buy many different things and to have the ability to one stop shop for most everything that you will need comes in handy and at a reasonable price. Also, with Amazon having the ability to only sell toys from people who are in the retailer program helps both parties. Toys "R" Us had encountered many problems selling toys online before joining Amazon Marketplace program and I feel that without the help of Amazon there could be many business that would have a problem selling their items.This also works for the small businesses and specialty businesses that have things to offer that you may not be able to find anywhere else or that they may be having a hard time selling. If that business is a part of the Marketplace Program not only do their items get sold but Amazon and the business owner get a profit.
2:
In 2004, Toys "R" Us sued Amazon.com for violating terms of the agreement between the companies; specifically, Toys "R" Us objected to Amazon.com's permitting Amazon Marketplace retailers to sell toys. (Note: when the lawsuit was filed Amazon Marketplace was called "zShops".) Amazon.com responded by filing a countersuit. After more than two years of litigation, a New Jersey Superior Court