Thursday, March 5, 2009

Amazon.com Enters New Market


After discussing the Boston Consulting Group (BCG) matrix I researched Amazon.com's efforts in increasing areas within their "question mark" region. One such area they have put financial backing towards is their entrance into the used game market.

Now Amazon accepts console game trades in exchange for credit which can be used on their site. This effort to differentiate themselves is forcing competition closer between Amazon.com and GameStop, who offers the same convenience.

Until now, GameStop and Amazon were in strategic groups that were distant in nature. Now GameStop will be going head to head with a company that appears to be a "best cost" company according to Michael Porter's theory of Low Cost and Differentiated business strategies. They are combining low cost products, high customer service, and a differentiated product and market base which is putting Amazon.com in a strong market position.

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