How should amazon web services price its services to zappos
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How should Amazon Web Services price its services to  Zappos ? PowerPoint PPT Presentation


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How should Amazon Web Services price its services to  Zappos ?. Original blog posting (December 19 , 2013). Amazon Web Services, Inc. offers Cloud-based hosting service . Provides compute, storage, and database services Used by Amazon’s various divisions including Zappos. Question 1.

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How should Amazon Web Services price its services to  Zappos ?

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How should Amazon Web Services price its services to Zappos?

Original blog posting (December 19, 2013)


Amazon Web Services, Inc. offers Cloud-based hosting service

  • Provides compute, storage, and database services

  • Used by Amazon’s various divisions including Zappos


Question 1

What possible pricing methods could Amazon use to set the transfer price for AWS’s cloud-based hosting service to Zappos?


Question 2

Why might Zappos’ management argue for a discounted transfer price?


Question 3

Why might the management of AWS argue for a transfer price at the market price?


Question 4

What advantages could Zappos experience from using Amazon’s AWS services?  What advantages could Zappos conceivably experience by using a different cloud-based hosting service?


Question 5

Should Zappos be allowed to use a cloud-based hosting service other than AWS? Why or why not?


Question Recap

  • What possible pricing methods could Amazon use to set the transfer price for AWS’s cloud-based hosting service to Zappos?

  • Why might Zappos’ management argue for a discounted transfer price?

  • Why might the management of AWS argue for a transfer price at the market price?

  • What advantages could Zappos experience from using Amazon’s AWS services?  What advantages could Zappos conceivably experience by using a different cloud-based hosting service?

  • Should Zappos be allowed to use a cloud-based hosting service other than AWS? Why or why not?


For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at [email protected]


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