Amazon Case Study

Amazon.com An E-Commerce Retailer

A case report prepared for

MG 495

Fall 1 - 2012

John Doe

August 24, 2012

AMAZON.COM AN E-COMMERCE RETAILER

I. INTRODUCTION

A. EXECUTIVE SUMMARY

1. Summary statement of the problem: Amazon.com has had a couple sets of quarterly numbers that it could be proud of. 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, the founder and CEO have proved that his online retail business model could produce operating profits. One of the issues Amazon.com is facing is the “Internet Tax Moratorium, which is up for renewal in November, with no assurance of its being extended” (Collins, Mockler and Gartenfeld, p. 1). Another issue is for Amazon.com to remain competitive within the market. Currently, Amazon is concentrating more on the services side of the company, which is showing more growth potential than the product side.

2. Summary statement of the recommended solution: The issues that Amazon.com faces are issues that is very real and need to be addressed as quickly as possible. Amazon.com first solution is to invest in the business expansion of online auctions. On-line auctions have continued to improve in popularity and this service is steadily expanding. There is a “continued need for an intermediary in these types of transactions” (Collins, Mockler and Gartenfeld, p. 15). Another solution is “to develop and implement a business-to-business (B2B) exchange for suppliers, manufacturers, distributors, and retailers to use” (Collins, Mockler and Gartenfeld, p. 15). These solutions will be explained in depth in this case study.

B. THE SITUATION

Mr. Jeff Bezos, Founder and CEO created Amazon.com in 1994. “Mr. Bezos graduated from Princeton with a bachelor’s degree in electrical engineering and...