Pros and Cons of Stihl Using Amazon Market Place Paper
Pros and Cons of Stihl Using Amazon Market Place Paper
Stihl is a manufacturer of chain saws and other similar power tools. It has been shunning big retail chains like Home Depot and selling primarily through small retail shops. It has been doing well.
Recently, however, the growth and popularity of online market platforms such as the Amazon Marketplace – where manufacturers can sell directly to consumers if they choose – has created both opportunities and threats to manufacturers such as Stihl.
Review the attached documents and the discussion of platform business models in Rothaermel, pp. 249-253.
Suppose that you were a strategic consultant and Stihl hired you to evaluate whether it is worthwhile for Stihl to use the Amazon Marketplace to sell its power tools. Based on information in the provided documents, please answer the following two questions.
- What are pros and cons of Stihl using the Amazon Marketplace to sell its tools?
- Based on your analysis, what would be your recommendation to Stihl on whether to use the Amazon Marketplace?
- Might any changes in situation – such as increasing competition, change in product quality, or change in its customer base – lead you to reverse your recommendation or call for a different approach?
The paper should be no more than three single-spaced pages long (roughly one page for each question), with the font type of Times New Roman, the font size of 12, and 1 inch page margins.
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