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Read the Online Book Retailing Case Study prepared by Professor Serguei Netessine published by The Wharton School of the University of Pennsylvania.
What operational advantages and disadvantages does Amazon have relative to BN’s superstores?
Compare costs at BN with Amazon using data from the case. Does Amazon’s operational advantage outweigh its operational disadvantage?
Discuss the source of cost advantage/disadvantage for every item of financial data in Figure 5. Consider the same analysis for BN.com versus Amazon.
Did BN.com benefit from its parent bricks-and-mortar company? What do you think of Borders’ prospect of going online?