Amazon.Com Case Studies

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Name: PRASHANTH BALAKRISHNAN
Student ID: 071090070
Course: BIS 541/03 –MANAGING INFORMATION SYSTEMS
Program: CEMBA Commonwealth Executive Master of Business and Administration

TMA 1: “Amazon.com”- A Business History
Tutor: Prasanan P.T. Kannan
Submission Date: 07.March. 2009

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TABLE OF CONTENTS
Chapter Title Page 1.0 Executive Summary 2.0 Problem Statement 1 3.0 Analysis of Causes 3.1 Amazon’s Debt 2-3 3.2 Competition 3-4 3.3 Expansion 4-6

4.0 Decision Criteria and Alternative Solutions 4.1 Reduce
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For example, in March of 1999, Amazon introduced an auction service. After a few months effort, its auction business performed slightly, indicating how difficult it is to challenge the giant’s eBay and Yahoo! Auctions.
|Auction Sites |27-Sep-99 |Multiplier needed to equal eBay listings |
|Amazon Auctions |4.80% |15.3 |
|eBay |73.60% | |
|Yahoo! Auctions |21.60% |3.4 |

Source: Auction Web sites and C.E Unterberg Towbin

• Consumer Behavior Amazon.com is widely regarded as having one of the best management team of any internet company. However, there are some outside forces that are not easy to manipulate. ❖ Security; as the number of Internet crimes increases, customers are becoming aware of the possible danger involved in the process of on-line shopping. This security problem may not be difficult to improve since security technology is innovated quickly, but to convince customer of this is not as easy ❖ Etailers vs. retailers Another factor is hard to manage customer purchasing habits. Most consumers still prefer the capability of seeing a
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