Amazon.Com Case Study/Swot
Amazon.com: An E-Commerce Retailer
I. INTRODUCTION
A. EXECUTIVE SUMMARY
1. Summary statement of the problem: Increased competition, a consistently poor economic environment and a possible repeal of the Internet sales tax exemption has forced Amazon.com to generate new strategies on how to remain competitive in the e-Commerce business. This issue seems to be, how to retain a competitive edge while minimizing costs and still remaining focused on the core vision of the company. The strategies focused on the services side of the company instead of the products side, as the services side was the best suited for new opportunities.
2. Summary statement of the recommended solution: Amazon.com has two solutions to entertain regarding their services division. The first solution is to invest in the business expansion of online auctions, as they identified a continued need for this type of transaction. The second solution was to create and implement a business-to business (B2B) exchange for suppliers, retailers, manufacturers and distributors. These solutions will be explained in depth in this case study.
B. SITUATION
Amazon.com was created in 1995 with the vision of CEO Jeff Bezos. The company had a primary product of online book sales but was seeking new ways to increase their foothold in the online retail niche. Since then, Amazon has become an online super mart that sells books, DVDs, videos, toys, electronics, household kitchen items and appliances, and home improvement items, to name a few. Through its marketplace services such as online auctions and zShops, the company created web-based marketplaces where buyers and sellers entered into transactions which involved an even wide range of products. The case quoted Bezos, but I think the 2003 SEC filing from Amazon.com states the best company vision and strategy: “We seek to offer Earth’s Biggest Selection and to be Earth’s most customer-centric company, where customers can find and discover anything they might
I. INTRODUCTION
A. EXECUTIVE SUMMARY
1. Summary statement of the problem: Increased competition, a consistently poor economic environment and a possible repeal of the Internet sales tax exemption has forced Amazon.com to generate new strategies on how to remain competitive in the e-Commerce business. This issue seems to be, how to retain a competitive edge while minimizing costs and still remaining focused on the core vision of the company. The strategies focused on the services side of the company instead of the products side, as the services side was the best suited for new opportunities.
2. Summary statement of the recommended solution: Amazon.com has two solutions to entertain regarding their services division. The first solution is to invest in the business expansion of online auctions, as they identified a continued need for this type of transaction. The second solution was to create and implement a business-to business (B2B) exchange for suppliers, retailers, manufacturers and distributors. These solutions will be explained in depth in this case study.
B. SITUATION
Amazon.com was created in 1995 with the vision of CEO Jeff Bezos. The company had a primary product of online book sales but was seeking new ways to increase their foothold in the online retail niche. Since then, Amazon has become an online super mart that sells books, DVDs, videos, toys, electronics, household kitchen items and appliances, and home improvement items, to name a few. Through its marketplace services such as online auctions and zShops, the company created web-based marketplaces where buyers and sellers entered into transactions which involved an even wide range of products. The case quoted Bezos, but I think the 2003 SEC filing from Amazon.com states the best company vision and strategy: “We seek to offer Earth’s Biggest Selection and to be Earth’s most customer-centric company, where customers can find and discover anything they might
References: 2000 annual report. (2001, April 13). Retrieved from http://phx.corporate- ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual 2001 annual report 2002 annual report. (2003, April 11). Retrieved from http://phx.corporate- ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual Amzn - amazon.com - 10-k sec filing: 02/19/03 Business models of the dot com survivors. (2001). The Surf 's Up, 1(7), Retrieved from http://www.the-surfs-up.com/news/news6p1.html Jurvetson, S Leschly, S., Roberts, M.J., Sahlman, W.A., & Thedinga, T. (2002, November 21). Amazon.com--2002. Harvard Business Review, Retrieved from http://hbr.org/product/amazon-com-2002/an/803098.pdf Jurvetson, S Varon, E. (2003, October 15). E-commerce strategy - amazon.com, software vendor. CIO, Retrieved from http://www.cio.com/article/29855/E_Commerce_Strategy_Amazon.com_Software Vendor Wheelen, T.L., & Hunger, J.D. (2010). Strategic Management and Business Policy: Achieving Sustainability. (12th Ed.) Upper Saddle River, NJ: Prentice Hall.