Amazon.com: An E-Commerce Retailer

A case report prepared for Professor Stroud

MG 495/DLD Business Policy

Fall I 2011

August 21, 2011

THE WALT DISNEY COMPANY CORPORATE STRATEGY

I. INTRODUCTION

A. Executive Summary

1. Summary statement of the problem: Considered to be the premier online retailers in the word, Amazon.com has had a short life (founded in 1994) but can be proud of the strides it has made. Jeff Bezos, founder of Amazon.com, had an idea that was rejected by his former employer. Bezos decided to take his idea and found a new type of company, one that could withstand the test of time. Bezos was future-thinking when he founded the company because at that time very few households had access to the
The potential disadvantages to this venture were fraudulent sellers who sold lower-quality goods which could tarnish Amazon.com’s stellar reputation of providing top-notch customer. Buyers insurance helped to combat this issue but it did not alleviate that Amazon was competing against its own product line.
II. ANALYSIS
A. Analysis of the Situation
1. Management – Amazon.com’s management has been under the control of founder Jeff Bezos since its inception. Bezos’s business strategy has always been to sacrifice short-term profits in order to build long-term growth, gain market share and increase shareholder value. Since the early beginnings of the company Bezos has proved that this strategy in the online retail business world could produce operating profits. Bezos has a simple philosophy and it has stood the test of time. He has been faced with overcoming the Internet Tax Moratorium law while at the same time developing new business ventures to ensure that the company profits against aggressive competition. Rating Bezos’ management strategies on the Boston Consulting Group (BCG) scale, his management style could certainly be considered a star. His product lines have maintained a competitive position and are different than its competitors. Bezos seems to have the ability to overcome short-term obstacles and sour above his competitors. In Amazon.com’s 1997 letter