Whatâs Your Google Strategy?
by Andrei Hagiu and David B. Yoffie
WHEN TOYS âRâ US EXECUTIVES SIGNED a 10-year âexclusiveâ agreement with Amazon in 2000, they saw the deal as the perfect solution to a vexing challenge: how to establish an online retail business that would dominate its category and achieve profitability sooner rather than later. Having struggled to build an online business on their own, they believed they needed Amazonâs internet savvy and order-fulfillment skills. They agreed to pay Amazon a hefty $50 million annually plus a percentage of the toy retailerâs online sales in exchange for Amazonâs building and running a Toys âRâ Us virtual storefront on its e-commerce site. Less than four years later, the deal ...
Get HBR's 10 Must Reads on Technology and Strategy Collection (7 Books) now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.