Amazon.Com - Analysis of the Situation

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Amazon.com

A case report prepared for

MG 495 Business Policy

INTRODUCTION
Executive Summary/ Situation

Amazon.com offers one touch shopping experience for millions of consumers around the world. You now have the ability to conduct all your shopping needs, wants and desires form the comfort of your own home. Say good bye to long lines, congested parking lots and hello to luxury and convince in the tips of your fingers. Our clients are consumers that are will to expand and try something that is completely changing the shopping experience without even leaving the comfort of your own home. Amazon understands that connivance is everything these days and people do not have the time to shop around from store to store anymore. That is why they bring everything to you in one easy to navigate website. Amazon.com offers a variety of merchandise for you browsing pleasure. From books, CD’s, music, electronics, tool, kitchen, clothing apparel, toys, to other web operations. Internationally Amazon.com has seen a tremendous explosion of growth over the years and with the ever growing population of consumers understanding the importance of broad band that the capabilities that it has to offer, Amazon.com could not have been in a better place nor time. While there are other major competitors such as yahoo and eBay, Amazon strives to continue to be one of the top sellers of merchandise and customer satisfaction. When you shop Amazon you know that you are going to get what you want. Even though Amazon.com has seen substantial growth, they have had their problems along the way and need to focus on creating a company that has the ability to continue in customer satisfaction along with growth in the industry to supersede its major competitors.

THE SITUATION
Although Amazon.com had established itself as one of the premier online retailers in the world, pressure from increased competition, an overall poor economic environment, and the possible repeal of the sales tax exemption afforded e commerce transactions had put pressure on Amazon.com to evaluate and possibly formulate new strategies in order to remain competitive. (Collins, P., Mockler, R, & Gartenfeld, M, pg 14, 2003) CEO, Bezos new that certain things needed to be put in to place in order to not only exceed expectations for the future, but continue to be the premier website that it has been known for.

As mentioned in the case, Bezos and his management teams were faced with these problems and needed to be able to come up with a solution, and quickly. The team had managed to come up with two alternatives to help the growth of the company and they were focused primarily around Business to Business transaction (B2B) or expanding the business through more advertising in campaigning, television ads and print ads. Both alternatives seemed to make sense. They both seemed to have advantages and disadvantages.

Both offered ways to increase sales and market share while staying ahead of the competition. Bezos and his management team decided to study both alternatives further, especially within present financial situations, as well as other alternative in other strategic areas, in order to decide which would be most appropriate. (Collins, P., Mockler, R, & Gartenfeld, M, pg 16, 2003)

ANALYSIS OF THE SITUATION

1.Management
As mentioned in the beginning, Amazon’s management team needed to become a “malleable” entity. Reason being, strategies of the company from start to 2003...
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