Compare the forecast long-run cost position of a successful online bookseller to B&Ns traditional business model. (Assume that exhibits 4 and 7 in the case reflect average discounts of 10% off list for B&Ns brick and mortar stores and 25% off online.) C. Assess B&Ns substitution threat from Amazon. How did Amazon respond and to what net effect? D. Who will be the online leader? Is this a good business to be in in the long run? 10. Microsoft a. What accounts for Microsofts historical success? B. What accounts for the winner-take-all dynamics leading to Microsofts dominance? C. What are the threats to the sustainability of Microsofts position? 11. Apple a. Historically, what were Apples major competitive advantages? B. Evaluate Apples strategies in the 1990s. C. What are Apples current competitive advantages? Are these sustainable?
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