MGMT 300 CHAPTER 7 EXAM QUESTIONS

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MGMT 300 CHAPTER 7 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -74 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Bezos Quote

Answer:

"I always get the question, what's going to change in ten years?"I almost never get asked, what's NOT going to change in the next ten years?" - more important question because you can build a business around things that are stable (low prices, faster delivery, customer convenience, selection)

Question 2: Physical Presence (Amazon)

Answer:

• absence of brick and mortar stores brinds down costs for real estate, energy inventory, and security

allows for amazon to spend significantly on software, automation, and expansion of its warehouses

Question 3: Kindles Market Position Allowed it to Undercut Competition

Answer:

• kindle fire was offered at half the price of its competition while increasing the devices functionality

(Moore's Law)

• kindle versions are sold at or below cost

- digital publishing

enables titles to enter the market far faster than physical offerings

Question 4: Amazons "Wheel of Growth"

Answer:

three pillars of Amazon's business (1) large selection (2) customer experience (3) lower prices work together to create additional assets for competitive advantage

Question 5: Two-sided Network Effect

Answer:

• products or services that get more valuable as two distinct categories of participants expand
• more buyers attract more sellers
• more sellers attract more buyers

Question 6: Which of the following factors likely contributed to the failure of the Fire phone?Select all possible correct answers.

Answer:

• amazon was late to the smartphone market
• amazon lacked network effects for its new system
• rivals benefited from significant customer switching costs

Question 7: Amazon Fresh Delivery

Answer:

• a freshdirect style grocery competitor
• offering same day or next-day delivery of groceries and more
• Amazon has 43% of the online retail market, over 90% of purchases happen in physical stores, and

the US grocery business alone is worth three-quarters of a trillion dollars.- amazon is still experimenting with getting the model for groceries right - amazon fresh "click and collect" centers allow customers to order online and then drive through to have their groceries loaded directly into their cars at a predetermined time

Question 8: Amazon have also been victims of channel conflict

Answer:

• topping the sale of Kindles and blocking the sale of books published through Amazon imprints.
• when

channel conflict occurs , the winner will likely be the channel that offers the greatest aggregate value to its partners

Question 9: A/B Test

Answer:

• randomized group of experiments used to collect data and compare performance among two options

studied (A and B)

• is often used in refining the design of technology products
• are particularly easy to run over the Internet on a firm's website

Question 10: Amazon does not make money by selling Kindle hardware

Answer:

• it seeks to fuel media and e-commerce sales as well as side businesses such as on-Kindle and in-app

advertising.

Question 11: Amazon's Category Crushing Performance in Online Commerce

Answer:

• have created a set of resources (data, scale, network effects, and more) that have a natural end-state

of winner-take-all

• give them enormous bargaining power with suppliers and partners,
• made amazon the first stop for shoppers and the first choice for selling partners, allows the firm to

gather an unprecedented amount of data, and has created a distribution footprint that's difficult to imagine any other firm rivaling

Question 12: Amazon's Shipping and Delivery Infrastructure

Answer:

- includes a fleet of Prime Air cargo jets, long-haul trailers, local trucks, trans-oceanic shipping operations, and plans for automated delivery-by-drone.- cost and control drive Amazon's interest in logistics

• Amazon spent $27.8 billion on shipping costs in 2018 (with fulfillment costs) $61 billion - quarter of

amazon's revenue

• 4.8 million packages a day in the US alone.

- delivery network gives Amazon more control over the customer experience

Question 13: Amazon Go Concept Store

Answer:

• shows how machine learning influences computer vision, AI, and other techniques to eliminate cash

registers

• shopping experience without lines is potentially far more attractive for consumers
• offer any retailer benefits such as more shelf space, stores in a smaller real estate footprint, and

perhaps even a smaller staff size.

• uses image recognition, motion detection, weight sensors, and other advanced AI to tell what a

customer picks up and charges them when they leave the store

Question 14: Amazon Marketplace

Answer:

- half of all units sold by Amazon are from the firm's 2 million participating Amazon Marketplace sellers worldwide.

• allows amazon to build a long tail of product offerings without the costly risk of having to take

ownership of unproven or slow-moving inventory

• Around 40% of products sold on Amazon are offerings sold through Amazon Marketplace by third

parties

allows amazon to:

• get a cut of each sale
• maintains its control of the customer interface
• retains the opportunity to collect customer data that would be lost if users went elsewhere for a

purchase.

Question 15: Amazon Postponed Profits and Concentrated on

Answer:

• Expanding warehousing capacity

• Building e-commerce operations worldwide

• Developing a cloud computing platform

• Pioneering e-book readers