Case Study on Amazon

2409 WordsApr 18, 200810 Pages
Case Study MG495 TO: Jeff Bezos, Founder & CEO, Amazon.com DATE: 04/06/08 SUBJECT: Amazon.com Analysis EXECUTIVE SUMMARY Amazon.com was founded as an online bookstore in July, 1995 and went public in May 1997. In June, 1998 Amazon.com launched its music store. Since then Amazon.com has become the most prominent Internet retailer. Over time Amazon.com has added several products including electronics, health and beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several services such as auctions, 1-Click ordering, and zShops. Amazon.com has expanded nationally and internationally and now operates several customer service and distribution centers in the United States and international web sites that…show more content…
This is due to Amazon being able to collect payments immediately for sales, therefore generating a large amount of working capital. Amazon made use of the partnerships and affiliation agreements to supplement its own product lines, with retailers like The Gap, Target, Eddie Bauer, Nordstrom, and Toys “R” Us. The company’s competitive market position within its industry Threats One of the environmental threats facing Amazon was the overall economic malaise of the U.S. and world economies, the Internet Tax Moratorium law was up for renewal, with no assurance of its being extended and online stalwarts EBay and Yahoo were expanding into Amazon.com’s markets. The Founder of Amazon was faced with the task of developing an effective differentiating enterprise wide strategy to prosper against the competition over the intermediate and long-term futures. The stock market pressured the company to produce consistent operating profits and to prove that its business model worked financially over the long term. IV. Stakeholder Analysis A. Government Agencies – The Federal Communications Commission, is a commission that defines the broadband to meet customer broad communication needs and desires. B. Labor Unions – Since Amazon is an online buying center, there are no labor unions. These unions exist when there are enough in center employees to need protection as an

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