this Paper is for refereince purpose only dont submit it to your school Amazon Vs Yahoo Competitive Advantage GROUP PROJECT (SPRING 2003) Hau-Yaung Kuo Jessica Sison Sree Vietla Na Wang Table of Contents EXECUTIVE SUMMARY 3 INDUSTRY BACKGROUND 5 CURRENT E-COMMERCE ENVIRONMENT 8 MARKET PARTICIPANTS 9 BUYER/SUPPLIER RELATIONSHIPS 14 BUSINESS MODELS 15 PARTNERSHIPS 18 COMPETITIVE ADVANTAGE 20 ETHICAL, SOCIAL AND POLITICAL ISSUES 22 CONCLUSION 24 REFERENCES 25 Executive Summary Book retailing is traditionally dominated by independent local bookstores, but large chain stores have substantially increased their share of the market since the 1970s. Chains mostly grew through the 1980s by adding mall based bookstores, but shifted their focus in the 1990s to adding superstores, large stores with more titles and space. The traditional distribution model includes publishers, wholesalers and retailers. Most books began with authors, who sold the rights to their works to publishers in return for a flat royalty rate. Publishers have traditionally sold books to wholesalers and retailers on a consignment business. The wholesalers sold the books to the retailers who in turn sold the books to the end customer. The retail bookstore industry is dominated by the four large chains - Barnes Noble, Borders Group, Books-A-Million, and