Amazon.com

6817 WordsFeb 21, 201328 Pages
CASE STUDY Amazon.com© 2007–early 2009 Gary J. Stockport This case study is concerned with the continual roll-out of Amazon’s global strategy through the development of resources and strategic capabilities. It is about global dominance through the development and use of technology and acquisitions and alliances to offer an increasing array of products and services and continually enhancing customer experience. The case discusses the widening of Amazon’s business through serving three distinct and different groups of customers. The case highlights a number of potentially disruptive technologies including Kindle and cloud computing. G G G G G Introduction By 2008, Amazon.com had a market capitalisation of some US$29.4 billion1…show more content…
Bezos had already chosen books as his preferred product due to their low price point and the size of the global market, estimated at over US$80 billion at the time. He believed web-based technology would provide customers with a much larger range of titles at their fingertips as well as enable better organisation and presentation of the millions of books. Seattle was a logical choice to locate the business as it was close to Ingram Books, the largest US book distributor. It also had access to a large supply of computer software talent. Furthermore, the State of Washington had a more favourable sales tax climate. Over the next 12 months, whilst operating from the garage of his rented home, Bezos, his wife, and three others established relationships with shippers and wholesalers, developed the software and tried to raise money. The business went ‘live’ with an online store in July 1995. Silicon Valley funding for a further $8 million. During 1997, an initial public offering (IPO) comprising 3 million shares raised $50 million and enabled an aggressive expansion of the

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