Amazon.Com Case Studies

Topics: Electronic commerce, Online shopping, Customer Pages: 15 (3591 words) Published: February 28, 2010
Student ID: 071090070
Program: CEMBA Commonwealth Executive Master of Business and Administration

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


1.0Executive Summary
2.0Problem Statement1
3.0Analysis of Causes
3.1 Amazon’s Debt 2-3
3.2 Competition3-4
3.3 Expansion4-6

4.0Decision Criteria and Alternative Solutions
4.1 Reduce expenditure in inventories and better management7 in supply chain 4.2 Presenting a competitive edge to competitors7 4.3 Expansionto Asia8

5. Recommended Solutions
5.1 Technology Integration and R&D9
5.2 Strategic Cost Analysis9
5.3 Differentiation9
5.4 Inventory10
5.5 Visionary & Informative10-11
5.6 Keep customers in the loop on everything11 5.7 Shipping & Delivery11
5.8 Expansion to Asia Region11-12
5.9 Word-of mouth advertisement12
6.0 Expand the product lines13

6.0Appendices14-16 7.0References17

Executive Summary
The study comprises of which started its history by selling books and now one of the online market leaders globally not only for books but products from various categories. Company started with a mission to be Earth’s most customer centric company.

In order to become the largest and convenience online store for all, there are major problems or threat being faced by in succeeding its mission. The major problems are Amazon facing high amount of debt, it’s less initiative in not expanding to other developed countries, and also competition from other online retailers and one tough opponent is Barnes & Nobles.

Many plans of actions can be taken and some of it is; should decrease long–term debt by increasing expenditure on research and development, increasing word-to-mouth advertisement and good customer service. should also expand the five most common languages in Asian region. Focus marketing strategies on customer feedback to find out what Asian customers tend to buy and willing to spend on. Strategize new plan on improving sites to be informative and attractive as much as possible so should also adapt to the best technology where it can sustain as a strong innovator in ever increasing retailer market. also must strive to give customers the best service in shipping and delivery as it’s an important aspect in online business to out beat its entire competitors on this online industry.

Problem Statement

The main problem faced by now being an online retailer can be divided to three in overall. is in confronting huge debt behind their successful screen. is lack of expansion to other regions or Asia which be said as another big market for a huge online bookseller as Another problem is the competition being faced by them with one of the tough opponent as Barnes&Nobles.

Analysis of the Problem’s in Debt
3.1 Amazon’s Debt
One of major causes of Amazon’s huge debt is its large expenditure. In order to keep its advantageous position, Amazon has no choice but to continue to spend astronomical amounts of money on sales & marketing, research & development and general & administrative costs. (Table 1 & Table 2) “One misstep, and its love affair withy investors and sources of capital could be over.” (Kimberly Weisul, 1999) • Competitors

Although Amazon won the battle...

References: 1] Chao Janice C. Rice, Brandi S. Dec 8, 1999
2] Dustin Nadeau & Donatas Sumyla
3] Clementina Imobhio May 5, 2001 - E-Transaction: Shopping Carts Comparison (Accessed Feb 20, 2009)
4] Paul Larson
(Accessed Feb 16, 2009)
5] Önder Savaş Devrim Dirik. January 9, 2003 – İnformatıon Management
(Accessed Feb 16, 2009)
6] Strategic Analysis of (Accessed Feb 19, 2009)
7], (Accessed Feb 20, 2009)
8], (Accessed Feb 20, 2009)
9], (Accessed Feb 20, 2009)
10] Sujan Sarkar. April 23, 2007 - Amazon vs. Barnes & Noble:
(Accessed Feb 16, 2009)
11] Table 1- Source; (Investors Relations)
(Accessed Feb 17, 2009)
12] Table 2- Source; (Investors Relations)
(Accessed Feb 17, 2009)
13] Table 3; Media Matrix;
(Accessed Feb 17, 2009)
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