solution

Amazon’s acquisition of Whole Foods and further entry into the grocery business is noteworthy. Which of the following related statements is false?

1. Most of the “goodwill” entailed with Amazon’s purchase of Whole Foods is linked to actual operation of the business.

2. At the time of the Whole Foods acquisition, the then current CEO was not replaced.

3. Whole Foods employees are known for being well-trained, and turnover is low relative to most competitors.

4. Amazon has linked its “Prime Member” offerings to delivering Whole Food groceries at no cost to associated “Prime Members”.

1. Which of the following is true?

1. Moore’s Law enabled Amazon to radically reduce the price of Kindle offerings while increasing device functionality.

2. Amazon makes a significant amount of revenue by selling Kindle hardware.

3. Amazon’s Fire Phone provides a cautionary tale to industry “first movers”.

4. Amazon’s dominance of publishing and attendant bargaining power is not likely to attract domestic or international regulations and sanctions.

2. Which of the following is true of Amazon’s Web Services (AWS)?

1. Firms that leverage cloud solutions such as AWS do so without any loss of related control.

2. AWS enables firms to shift from a highly variable cost structure to larger, fixed-cost investments.

3. To maintain appropriate segregation of duties in their business, Amazon does not use its AWS services internally.

4. AWS provides most of Amazon’s corporate profit.

CHAPTER 10

1. Which of the following is not a factor driving the rise in collaborative consumption?

1. Inflation.

2. Recession.

3. Social Media.

4. Proliferation of Smart Phones.

2. Which of the following statements is false?

1. Fragmented marketplaces are particularly well suited for roll up in electronic marketplaces.

2. Some firms choose to take control of inventory to maximize quality, and customer experience.

3. Virality usually increases advertising and customer acquisition costs.

4. Many entrenched interests challenge the legality of the shared economy, and lobby for its regulation or curtailment.

3. Which of the following is not a co-founder of Airbnb?

1. Brian Chesky.

2. Joe Gebbia.

3. Nathan Blecharcyk

4. Sergei Brin.

4. Which of the following is a founder of Uber?

1. Travis Kalanick.

2. Ronald Wayne.

3. Dara Khosrowshahi.

4. Larry Page.

5. Which of the following statements is true?

1. Uber’s market is derived solely by taking away from the existing taxi market.

2. Uber’s able to achieve a low-cost model by eliminating human dispatchers, and the capital costs associated with a fleet of cars.

3. Nearly half of all Uber drivers have a college degree

4. D.Uber is a classic example of a one-sided market.