Amazon.com was founded in 1994 as an online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon competes in a vast array of markets including: books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand. Imagine if Toys-R-Us, the largest toy retailer began selling books or if the NBA began selling hardware online.

The threat of consumer confusion would rise thus bringing into question the value of the Toys-R-Us and NBA brands. Some analysts question the wisdom of Amazon.com selling pr oducts that are typically sold in the business-to-business markets.

For example, you can now purchase industrial, laboratory and scientific supplies from Amazon.com. Required: Review the most current Amazon.com Annual Report at: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual Browse www.Amazon.com, www.BornesAndNoble.com, www.Borders.com. Create a table to compare and contrast the Websites:www.Amazon.com, www.BornesAndNoble.com, and www.Borders.com, using the following criteria: functionality, design, content, originality, professionalism and effectiveness. Include the table as an appendix to the required paper.

You are to write a four to five page report that answers the following:

Discuss the pros and cons of Amazon's growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

Determine the impact if Amazon.com had split up and become a family of brands (for example, "Amazon" for books, "Supertoys" for toys, etc.), each with a different public face but all run by the same parent company.

Determine if it would be possible for Barnes and Noble or Borders to extend their markets in the same way that Amazon.com has. Explain your rationale.

Determine what Amazon.com would need to do to expand their distribution chain to include some brick and mortar outlets, and whether or not this would be a good idea.

The format of the report is to be as follows: Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format. Use headers for each of the criteria, followed by your response. In addition to the 4-5 pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor's name, the course title, and the date. NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.