Homework
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 about the platform business model, Stihl, and Amazon. 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. Your analysis and answers will be considered by Stihl's CEO as he develops company's strategic planning for the next five years.
Based on information in the provided documents, answer the following three questions.
1) What are pros and cons of Stihl using the Amazon Marketplace to sell its tools?
2) Based on your analysis, what would be your recommendation to Stihl on whether to use the Amazon Marketplace?
3) 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?
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Reference
1) Rothermeal, F. T. (2019). Business Strategy: Innovation, Entreneurship, and Platforms. Strategic Management, 4th Edition. Dubuque, Iowa, McGraw-Hill Education 249-253.
2) Stock, K. (2014). Stihl Chain Saws Thrive Outside the Big Box. Bloomberg.
3) Marketplace-Pulse (2019). Marketplaces Year in Review 2018, Marketplace Pulse.
4) Danziger, P. N. (2018). Thinking of Selling on Amazon Marketplace? Here Are the Pros and Cons. Forbes.
5) Greene, J. (2019). Amazon Tests Pop-up Feature Touting Its Lower-Priced Products. Wall Street Journal.