Case | HBS Case Collection | January 2017 (Revised December 2017)

X Fire Paintball & Airsoft: Is Amazon a Friend or Foe? (A)

by Feng Zhu and Angela Acocella

Abstract

Three years after launching his brick-and-mortar store, X Fire Paintball and Airsoft, Steve Herbert Sr. and his sons began selling products on Amazon.com’s third-party Marketplace, and online sales expanded rapidly. Over time, X Fire noticed that products of which it had once been the only seller were now being sold by Amazon straight from X Fire’s suppliers, effectively cutting X Fire out. Amazon was also ignoring the minimum advertised price (MAP) set by manufacturers. How should X Fire defend itself? Now Amazon representatives were approaching X Fire to encourage them to sell on Amazon’s smaller but growing Canadian Marketplace. How should X Fire respond to this opportunity?

Keywords: Ethics; Competition; Market Platforms; Online Technology; Small Business; Retail Industry; Canada;

Language: English Format: Print 18 pages EducatorsPurchase

Citation:

Zhu, Feng, and Angela Acocella. "X Fire Paintball & Airsoft: Is Amazon a Friend or Foe? (A)." Harvard Business School Case 617-046, January 2017. (Revised December 2017.)

Related Work

  1. Supplement | HBS Case Collection | January 2017 (Revised December 2017)

    X Fire Paintball & Airsoft: Is Amazon a Friend or Foe? (B)

    Feng Zhu and Angela Acocella

    Three years after launching his brick-and-mortar store, X Fire Paintball and Airsoft, Steve Herbert Sr. and his sons began selling products on Amazon.com’s third-party Marketplace and online sales expanded rapidly. Over time, X Fire noticed that products of which it had once been the only seller were now being sold by Amazon straight from X Fire’s suppliers, effectively cutting X Fire out. Amazon was also ignoring the minimum advertised price (MAP) set by manufacturers. How should X Fire defend itself? Now Amazon representatives were approaching X Fire to encourage them to sell on Amazon’s smaller but growing Canadian Marketplace. How should X Fire respond to this opportunity?

    Keywords: Ethics; Competition; Market Platforms; Online Technology; Small Business; Retail Industry; Canada;

    Citation:

    Zhu, Feng, and Angela Acocella. "X Fire Paintball & Airsoft: Is Amazon a Friend or Foe? (B)." Harvard Business School Supplement 617-047, January 2017. (Revised December 2017.)  View Details
    CiteView DetailsPurchase Related

  2. Case | HBS Case Collection | January 2017 (Revised December 2017)

    X Fire Paintball & Airsoft: Is Amazon a Friend or Foe? (A)

    Feng Zhu and Angela Acocella

    Three years after launching his brick-and-mortar store, X Fire Paintball and Airsoft, Steve Herbert Sr. and his sons began selling products on Amazon.com’s third-party Marketplace, and online sales expanded rapidly. Over time, X Fire noticed that products of which it had once been the only seller were now being sold by Amazon straight from X Fire’s suppliers, effectively cutting X Fire out. Amazon was also ignoring the minimum advertised price (MAP) set by manufacturers. How should X Fire defend itself? Now Amazon representatives were approaching X Fire to encourage them to sell on Amazon’s smaller but growing Canadian Marketplace. How should X Fire respond to this opportunity?

    Keywords: Ethics; Competition; Market Platforms; Online Technology; Small Business; Retail Industry; Canada;

    Citation:

    Zhu, Feng, and Angela Acocella. "X Fire Paintball & Airsoft: Is Amazon a Friend or Foe? (A)." Harvard Business School Case 617-046, January 2017. (Revised December 2017.)  View Details
    CiteView DetailsEducatorsPurchase Related

About the Author

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Feng Zhu
Piramal Associate Professor of Business Administration
Technology and Operations Management

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