1. Amazon.com provides an example of the Chapter 1 concept of bringing resources together to create processes and capabilities. It continues to differentiate itself and expand beyond books, music, and videos by creating partnerships with companies that have specific market expertise in such areas as toys, electronics, kitchenware, and computers. The Amazon approach to doing business, as well as its latest innovations, are described in About Amazon.com.

1. Who are Amazon's biggest competitors?
2. How can Amazon continue to differentiate itself from competitors who can copy its business model?

2. The increase in the power of the customer is discussed in Chapter 1 as a trend that is enhanced through technology. The demand collection model basically receives price "bids" from customers and then seeks suppliers that are willing to provide the good or service at that price. Through its patents, Priceline.com owns the demand collection system business model. Read their description of how it works for different purchases and why it is so effective at Priceline.com's explanation of their business.

1. Obviously, Priceline.com competes as a cost leader. Are their other bases on which it can compete?
2. There have been anecdotal reports of hotels giving very poor service to customers who book through Priceline.com. Should this worry Priceline.com? How can it address the problem, if it does exist?