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ArtikelWhat’s Your Google Strategy?  
Oleh: Hagiu, Andrei ; Yoffie, David B.
Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Harvard Business Review bisa di lihat di link (http://web.b.ebscohost.com/ehost/command/detail?sid=f227f0b4-7315-44a4-a7f7-a7cd8cbad80b%40sessionmgr114&vid=12&hid=105&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&jid=HBR) vol. 87 no. 4 (Apr. 2009), page 74.
Topik: Toys “R” Us; Online Retail Business; Amazon; Profitability
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    • Nomor Panggil: HH10.38
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Isi artikelWhen Toys “R” Us executives signed a 10-year “exclusive” agreement with Amazon in 2000, they saw the deal as the perfect solution to a vexing challenge: how to establish an online retail business that would dominate its category and achieve profitability sooner rather than later. Having struggled to build an online business on their own, they believed they needed Amazon’s internet savvy and order-fulfillment skills. They agreed to pay Amazon a hefty $50 million annually plus a percentage of the toy retailer’s online sales in exchange for Amazon’s building and running a Toys “R” Us virtual storefront on its e-commerce site. Less than four years later, the deal had turned into a money loser for Toys “R” Us, and the company sued Amazon, seeking $200 million in damages. What went wrong? To fuel its own growth and profitability, Amazon had recruited small, third-party merchants to sell toys and games directly through its website. In a two-year court battle, Toys “R” Us argued that Amazon had violated the exclusivity agreement and that the rising competition had hurt its online sales. Amazon tried to justify its actions by contending that the other merchants were addressing customer needs that Toys “R” Us couldn’t or wouldn’t satisfy. In the end, the court ruled that Amazon had violated the agreement; it allowed the companies to sever their relationship but didn’t award Toys “R” Us damages.
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