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
Amazon.com made a wise decision to keep Zappos standing as their own entity as it is a success on its own without the help of any other company. The Amazon.com Brand is a good brand to have on your side but if the company that you already have is doing well on its own and has been for a long time I don’t see any reason to change that. There may come a time when Zappos may need Amazon.com and when that day arrives I am pretty sure that Amazon.com will help.

4:
In 1998, Amazon.com purchased the Internet Movie Database for a substantial, but undisclosed, sum. The site offers reviews of movies and information about movies, actors, directors, and others involved in the filmmaking business. The site doesn’t charge membership fees (except for a small area of the site reserved for people who work in the film industry, called IMDbPro, which doesn’t generate a substantial amount of revenue for Amazon.com). In about 100 words, speculate on why Amazon.com might have purchased this website and explain how it benefits from owning the site today.

When looking up the Internet Movie Database I didn’t know that I was an owner of it. I currently have streaming tv through Amazon Prime which is a