Intro to Information System
CASE 10 Amazon.com:
An E-Commerce Retailer Patrick Collins, Robert J. Mockler, and Marc Gartenfeld
HEADING INTO THE SECOND QUARTER OF 2003, JEFF BEZOS, FOUNDER AND CEO OF
Aniazon.com, could look back over the last couple sets of quarterly numbers forAmazon.com and be proud Under pressure from the financial markets to abandon the company 's oft-stated goal of sacrificing short-term profits for building long-term growth, market share, and increased shareholder value. Bezos proved that his online retail business model could produce operating profits. Now that Bezos had that issue taken care of, there were a number of new ones that needed to be addressed. Outside the overall economic malaise of the U.S. and world economies, the Internet Tax Moratorium law was up for renewal in November, with no assur-ance of its being extended, and online stalwarts eBay and Yahoo! were expanding into Amazoacorn 's markets. Bezos was faced with the task of developing an effective differenti-ating enterprisewide strategy if Amazon.com was to survive and prosper against aggressive competition over the intermediate and long-term futures.
Amazon.com is considered to be the premier online retailer in the world. Although it origi-nally started out selling only books, it has expanded into numerous other product lines, as shown in Exhibit 1. Some of these product lines include CDs, DVDs, and videos. However, in order to offer as large a product line as possible, Amazon.com has entered into contracts with numerous retail partners, such as The Gap and Eddie Bauer, to sell their goods through Amazon.com 's web site. Some of these partnership agreements involve Amazoacom running another company 's own web site. This type of partnership, known as "powered by Amazon." allows companies to use Amazon.com technology and patented web site capabilities, such as 1-Click Ordering. Two well-known retailers who have participated in this type of arrangement are Target and Toys 'R ' Us.
An E-Commerce Retailer Patrick Collins, Robert J. Mockler, and Marc Gartenfeld
HEADING INTO THE SECOND QUARTER OF 2003, JEFF BEZOS, FOUNDER AND CEO OF
Aniazon.com, could look back over the last couple sets of quarterly numbers forAmazon.com and be proud Under pressure from the financial markets to abandon the company 's oft-stated goal of sacrificing short-term profits for building long-term growth, market share, and increased shareholder value. Bezos proved that his online retail business model could produce operating profits. Now that Bezos had that issue taken care of, there were a number of new ones that needed to be addressed. Outside the overall economic malaise of the U.S. and world economies, the Internet Tax Moratorium law was up for renewal in November, with no assur-ance of its being extended, and online stalwarts eBay and Yahoo! were expanding into Amazoacorn 's markets. Bezos was faced with the task of developing an effective differenti-ating enterprisewide strategy if Amazon.com was to survive and prosper against aggressive competition over the intermediate and long-term futures.
Amazon.com is considered to be the premier online retailer in the world. Although it origi-nally started out selling only books, it has expanded into numerous other product lines, as shown in Exhibit 1. Some of these product lines include CDs, DVDs, and videos. However, in order to offer as large a product line as possible, Amazon.com has entered into contracts with numerous retail partners, such as The Gap and Eddie Bauer, to sell their goods through Amazon.com 's web site. Some of these partnership agreements involve Amazoacom running another company 's own web site. This type of partnership, known as "powered by Amazon." allows companies to use Amazon.com technology and patented web site capabilities, such as 1-Click Ordering. Two well-known retailers who have participated in this type of arrangement are Target and Toys 'R ' Us.
References: Amazon.com, Annual Report (2001). (October 25, 1999), p. B18. Barnes & Noble.com, Form 10-K (2003). Barnes & Noble.com, www.barnesandnoble.com. C. Bialik, "E-Commerce: B2B—Advertising: Sell First, Advertise Later," The Wall Street Journal (October 21, 2002), p Business Credit, Vol. 103, No. 9 (October 2001), pp. 23-25. J. C. Cooper and K. Madigan. "A Lasting Postwar Surge Will Hinge on the Labor Markets," BusinessWeek, No 2003). J. C. Dooren, "Retail Sales Increase Sharply As Customer Confidence Rises," The Wall Street Journal (April 14, 2003), p Wall Street Journal (March 8, 2002), p. B5. B. Elgin. L. Himelstein, R. Grover, and H. Green, "Inside Yahoo!" BusinessWeek, No Reaches a Critical Pass," BusinessWeek. No. 3798 (September 9, 2002) 27. 2003) p. 44. B. Elgin, "Can Yahoo! Make the Bounce Last?" BusinessWeek, No. 3820 (February 17, 2003), p. 41. B. Gairity, "Amazon Now Powering Virgin 's Retail Site," Billboard Magazine, Vol R. Gavin. "E-Commerce (A Special Report): The Rules—Rules & Regs," The Wall Street Journal (January 27, 2003), p. RIO. R. Gold, "E-Commerce: The Rules—Rules & Regs," The Wall Street Journal (December 9, 2002), p. R6. clickz.com 'stats sectors 'demographics arhcle.ph '157-621 (January 23,2003). (May 31, 1999), pp. 134-135. L. Himelstein and G. Khermouch, "Webvan Lett the Basics on the Shelf," BusinessWeek, No No. 3708 (November 20, 2000). R. D. Hot", "eBay Rules: The Online Marketplace Thrives in Good Times and Bad," BusinessWeek, No p. 172. R. D. Hot", "The People 's Company," BusinessWeek, No. 3760 (Decembers, 2001), pp Report Says," New York Times (April 26, 2003), p. A20. Information Week, No. 902 (August 19, 2002), p. 22. D. J. Lipke, "Mystery Shoppers," American Demographics. Vol. 22, No