Need a plumber? If Amazon.com succeeds, it will soon be a very large marketplace of home services and will connect customers with electricians, plumbers and painters in a move to have its services tied to every product sold on its website.
1. How will this change Amazon’s chart of accounts?
2. Provide three accounts that Amazon will have to create as a result of this new service.
3. What is the estimate of the gains that Amazon will receive as a result of this new service?
4. Do you think that it is a wise strategic move?
5. Do you think that this will impact other service provider companies like Angie’s List and Home Depot? Discuss.
Reuters staff. (2015). Amazon Now Lets You Hire People To Do Chores, Fix Stuff. Reuters News Service, March 30 (Retrievable online at http://www.huffingtonpost.com/2015/03/30/amazon-home-services_n_6968490.html?utm_hp_ref=business&ir=Business)
Geuss, M. (2015). Amazon launches “Home Services” business, wants to give you drum lessons. ARS Technica, March 30 (Retrievable online at http://arstechnica.com/business/2015/03/amazon-launches-home-services-business-wants-to-give-you-drum-lessons/)