¶ … Businesses
Comparison and Analysis of Businesses
In this paper we will assess two businesses, one successful and the other unsuccessful. We will attempt to contrast the two businesses in features such as their core business functionalities, sizes, financials and global presence. Our main aim will be to assess what has been the reason(s) for their success and failure respectively. We will also analyze some primary reasons for the different outcomes as well as give some recommendations as to how the unsuccessful one could have been made successful. For our choice we will choose the businesses from the field of e-commerce namely Amazon.com as the successful one and Boo.com as the unsuccessful.
Comparison
First, let's have a look at Amazon. It is an American multinational e-commerce firm which was founded in 1995, at first it served as a bookstore available online but soon it expanded its operations by selling different other things such as DVDs, computer software, electronic items, food, toys and many other materials. Its core business function is still as an online retailer and its presence is currently in many different parts of the world. It has a separate website for nations such as Canada, Germany, Italy, China, United Kingdom, France and many others. It is also looking to launch a separate website in other territories such as India and Netherlands.
Looking at its recent financial data available of the past year, its revenues were calculated to be more than thirty four billion dollars, operating income worth 1.4 billion dollars, net income worth 1.15 billion dollars, total assets worth more than 18.5 billion dollars, total equity more than 6.8 billion dollars and an employee force of thirty three thousand seven hundred globally.
Now let's have a brief look at Boo.com, it was an internet firm based...
Its business was the selling of many different types of fashion apparel which mainly included sports brands such as Adidas, Nike and others through the use of internet. The firm spent more than one hundred and thirty million dollars worth of venture capital in only eighteen months mainly on things such as technology. At its peak, boo.com had 350 employees which were mainly situated in European markets such as London, Paris and Munich, It also had offices in New York.
Analysis and Comparison
Let's compare the outcome of both of our chosen firms and analyze some of the reasons which were responsible for the different outcomes. The founder of Amazon focused exclusively on getting good venture capital at the start of his business, it also made Amazon more robust and expandable since more investors were ready to invest in it when the firm needed them to. Comparing this to Boo we see that it had a somewhat hard time in collecting venture capital from its investors at different stages of its lifecycle especially when it was about to go bust. Therefore this can be classified as one of the main reason for both of the firm's contrasting outcome. "Many buyers are more attracted towards good offers rather than good quality" (Gray, 2007).
Another reason for different outcome can be attributed to Amazon's publicity factor. Today it is very common to find the banner or advert of Amazon on any common website of the internet, it also uses many different techniques to get the visitors involved in the website even if they do not have to buy anything such as rate certain objects, comment on certain things and so on. "Sellers should offer more products according to the current demand" (Barnes, 2007).
Comparing this to Boo we see that it had to invest a lot on technology and…
