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Lester Electronics Financing Alternative Benchmarking
Lester Electronics is facing some major challenges because they may lose one of their biggest suppliers, Shang-wa, who is responsible for almost 45% of their revenue. Moreover, Lester Electronics is also being pursued by Avral Electronics to expand Arval's distribution network in the US market. In a situation like this, companies can often learn from other company's examples in similar situations. One of the companies Lester Electronics can look up to is Amazon and how Amazon developed a relationship with Borders six years ago which has helped Amazon tremendously in improving their awareness in the industry.
Corporate Benchmarking
Amazon.com, Incorporated
Amazon is an e-commerce company selling goods over Internet. Amazon was started as an online bookstore on year 1994 and soon diversified to different product lines such as VHS, DVDs, music CDS, MP3s, electronics, food, toys and more. Amazon grew at a steady pace in the late 1990s, survived Dot-com bubble burst and registered over $10 billion revenue in year 2006. Amazon has merchant partnerships with well known companies such as Borders Group. Recently began selling products under own private label "Pinzon" for products such as textiles, kitchen utensils, and other household goods. Amazon management believes and often mention in investors relations communication as "A fundamental measure of our success will be the shareholder value we create over the long term."
Borders Group Incorporated
Borders Group is the second-largest book, music, and movie retailer in the world. Major portion of Borders revenue come from two main brands, one is B ...