PROJECT REPORT

OF MICRO
ECONOMICS
AMAZON
 INTRODUCTION :
It's a worldwide American conglomerate centred on online commerce,
distributed computing, computerised real-time, and artificial
consciousness. It is one of the United States' Big Five corporations. It was
a teeny-tiny internet bookstore. It now offers records, music, presents,
consumer devices, programming, and home renovation ideas, among
other things.

 EVALUATION OF THE CASE :

Amazon has a customer-centric culture. They discuss relocating the force
away from the corporation and making it available to clients. They must
increase Amazon's constancy by interacting widely with their consumer
base. This technique has worked wonderfully for Amazon, which has 13
million customers and a high repeat buy rate. Amazon suffered losses as a
result of a hasty development process.
  PROPOSED SOLUTION/CHANGES :
Amazon and its aggressive marketing strategies pose the greatest
threat to Barnes and Noble. Barnes & Noble should focus more on
customer service and advertise themselves as a customer-driven
company.

MOB SHOP

 INTRODUCTION:
Mob shop is one of a handful of companies offering group buying on the
internet.

 BACKGROUND:
Customers can aggregate their purchasing power to acquire items at
a reduced price through group buying businesses, often known as
demand aggregators.

 PROBLEM IN THE CASE:

Analysts and financiers lauded the approach to demand aggregators
as one of the most creative consumer prospects, but the company's
business model is flawed since the expenses are too high and the
client base is too varied. They must swiftly establish critical mass in
the customer base and spend a lot of money to do it.

 PROPOSED SOLUTION/CHANGES:
MobShop should look towards increasing the company's goodwill
and making its customers loyal in order to increase their recurring
purchase rate.
 RECOMMENDATIONS:
MobShop may increase their generosity by improving the quality of
their items in order to keep their customers.

BUY.COM
 INTRODUCTION:
IT may increase their generosity by improving the quality of their
items in order to keep their customers.$160 million in revenue in
the third quarter of 1999

 EVALUATION OF THE CASE:

Buy.com advertised themselves as having the lowest prices on the
internet. They expanded from selling PC equipment to offering a
wide range of products such as games, music, and records. Their
strategy was to attract a huge number of visitors to buy.com and
then sell advertising space to businesses at exorbitant prices.

 PROPOSED SOLUTION/CHANGES:
Order processing and fulfilment were both problematic for Buy.com.
This issue must be addressed right now. They should concentrate
more on their short-term analysis.

 RECOMMENDATIONS:
To speed up request processing, Buy.com needs to secure additional
work. Scott Blum should also rectify the issue and assure his clients
that the company is taking appropriate steps to address the
problems.

PRICELINE.COM
 INTRODUCTION:
They provide airline tickets, accommodation, and personal budget
management services, including house loans, renegotiating, and
home value credits.

 EVALUATION OF THE CASE:

Priceline's customer base is extremely specialised, and the high
Elasticity of their products and services jeopardises their long-term
profitability. They should look towards expanding their clientele.

 PROPOSED SOLUTIONS/CHANGES:
Priceline's customer base is extremely specialised, and the high
elasticity of their products and services puts their income at risk in
the long run. They should consider increasing their clientele. Internal
economies of scale must be achieved.

 RECOMMENDATIONS:
Priceline should advertise itself based on its products and services
rather than its "name your own price" strategy. The major goal of
their marketing plan should be to acquire new customers.

MY SIMON.COM
 INTRODUCTION:
In 1998, the company was founded. They are the largest online
examination purchasing platform, with over 1000 vendors.
MYSIMON was acquired by CNET in the year 2000.Every sale came
with a fee of 2-5 percent.

 EVALUATION OF THE CASE:

The knowledge MySimon hung on consumer behaviour was its most
valuable asset. They had a lot of data and could use it to send out
various administrations.
 PROPOSED SOLUTIONS/CHANGES:
MySimon has to focus on the data they have about shopper
behaviour. The best use of this data will assist them in identifying
potential buyers and obtaining various services.

 RECOMMENDATIONS:
MySimon may create a new vertical in the company that is solely
focused on providing information to executives and conducting
investigations.

BARNES AND NOBLE

 INTRODUCTION:
Barnes & Noble has created a website called Barnesandnoble.com
where they offer books, periodicals, CDs, movies, and software. In
addition, they launched an online music store. According to Ben
Boyd, a business spokesperson, they wanted to focus on items that
could be digitised since they understood their brand's bandwidth
and don't want to move beyond it.

 EVALUATION OF THE CASE:

WHAT WORKED:
Their brand name worked as the cherry on the cake. Brand
recognition is arguably the most powerful competitive advantage
against their internet-only competitors.
WHAT DIDN’T WORK: The rigidity of the company to deal in the
products which can be digitized.
Separate physical presence from its online environment didn’t
work well. The website says, “purchase from Branesandnoble.com
cannot be returned to Barnes & Noble retail stores.”
 PROPOSED SOLUTIONS/CHANGES:
 Integration of on- and off-line divisions: Barnes & Noble and
Barnesandnoble.com must determine whether or not to merge the
formidable parent brand with the online subsidiary.

 RECOMMENDATIONS:
1. Cheap, low pricing: Amazon always offers the lowest prices. B&N's
pricing should be reduced.

2. Excellent merchandising: B&N could be more proactive in

approaching major publishers and writers. Customers prioritise
recruiting self-published writers to become exclusive for a set length
of time, similar to how Amazon does.

3. Excellent online experience and customer service: Amazon's site

isn't the prettiest to look at, but it definitely makes buying things
easy for me. The same may be said about purchasing a Kindle.

4. B&N's store experience is much inferior to that of the rivals. There

is room for improvement.

5. Customer service: Online loyalty is driven by customer service,

fulfilment, and trust. They should put more effort into it.