Amazon.Com the Brink of Bankruptcy

Topics: Strategic management, Customer service, Business model Pages: 3 (974 words) Published: May 4, 2013
Question 1 – Achieve Positive Cash Flow

"Would achieve its aggressive goal of becoming cash flow positive by the end of 2001" (Applegate, Austin, Soule, 2009, p. 155)? will be cash flow positive by the end of 2001. A close analysis of operating expenses for from 1997 to 2000 indicates the company has experienced significant increases in fulfillment, marketing, technology, and restructuring costs. Amazon has experienced a positive growth over several years and the upward trend will likely continue in 2001. In 2000 the company had almost 30 million customers. should consider conducting market research and collecting customer information (Applegate, Austin, Soule, 2009). To achieve positive cash flow should also consider several additional factors. First, building a successful business is a journey and business models evolve over time. Business models define the linkages among values, strategy, and capabilities. needs a new business model that follows the four key approaches; Enhance, Expand, Explore, and Exit that can shift with the decisions to enhance a new product or improve a process. Business models need to be flexible and aligned with a deep understanding of the components and linkages. has already demonstrated the relationships the company can create through partnerships with,, and (Applegate, Austin, Soule, 2009). Second, needs to focus on expanded partnership roles. Partnerships deliver an ongoing exchange of goods and services and the relationship must be able to adapt to the changing priorities of the parties involved. Expanded partnership roles enable the parties involved to work together to perform activities or source activities to and from one another. Relationships need to share goals and processes involved for achieving them. should have a two-way (interactive) extensive exchange of rich,...

References: Applegate, L. M., Austin, R. D., & Soule, D. L. (2009). Corporate information strategy and management: Text and cases. (8th ed.). Boston: McGraw-Hill.
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