Amazon Case Analysis Essay -- GCSE Business Marketing Coursework

virago.com Case AnalysisInternal & External Matrix, Matrix Analysis and TOWS Summary, and Quantitative Strategic Planning MatrixExecutive SummaryThis fount analysis serves the purpose to provide an analytical framework to evaluate virago.com from an internal and external perspective, and to provide strategic direction based upon the internal and external evaluation. The fictitious character will begin with an introduction to Amazon.com.Introduction/BackgroundJeffrey Bezos, formerly a senior vice president for D. E. Shaw & Company, founded Amazon.com in 1994. D. E. Shaw is a Wall Street-based investment bank, and Mr. Bezos was charge to find good Internet companies in which to invest. During the summer of 1994, he stumbled across a Web site that showed the number of Internet users was growing by 2,300 shareage per month. He quickly realized the vast potential of the Internet, and began putting together a list of possible products that he could sell on the World vast Web. He eventually narrowed his list to music products and books. Although music products and books both had enormous potential, he eventually selected books because he believed that he could compete more every bit in the book segment due to the lack of a very dominant player. In contrast, the music industry had only six major genius companies. These companies controlled the distribution of scripts and CDs and, therefore, had the potential to lock out a new business threatening the traditional record-store format (Kotha, p.11).To begin his new venture, Mr. Bezos left New York and go to Seattle. He decided to move to Seattle for two reasons 1) Ingram Book Groups warehouse is located near Seattle and 2) Because of the Seattle areas reputation for computer expertise. In 1995, Amazon began selling books entirely online, in operation(p) out of a rented facility and using doors laid across sawhorses for desks. He soon was able to generate several million dollars from venture capitalis ts, and sales were astounding. gross revenue for 1995, 1996, 1997, 1998 and 1999 were $0.5, $16, $147, $610 and $1,640 million respectively.Amazons customer base has increased dramatically from 180,000 in 100 countries in 1996 to 12 million in 160 countries by mid-1999. In 1998, Amazon began to expand into other product categories. The Company began to sell music products and videos, and within two months o... ...fries & Company, Inc. April 12, 2001 pages 1-16.Market Guide - Comparisons for amazon.com, Inc. (AMZN). http//yahoo.marketguide.com/mgi/ratio/A13EF.html pages 1-5. Author unknown.Lund, Brian. eBay vs. Amazon The Motley Fool. April 3, 2001. http//www.fool.com/portfolios/rulebreaker/2001/rulebreaker010403.htm pages 1-4.Becker, Holly, Gross, Michael and Leichter, Stephanie. Amazon.com Inc. Amazons world(prenominal) Challenges. Lehman Brothers Global Equity Research. May 3, 2001 pages 1-16.The Economist (1997a). A Survey of Electronic Commerce. May 10 pages 1-1 8. Author unknown. Taken from above Kotha essay.The Wall Street diary (1996). Reading the Market How a Wall-Street Whiz Found a Niche Selling Books on the Internet. May 16 page 1. Author unknown. Taken from above Kotha essay.Eads, Stefani. Why Amazons Board is Part of the Problem. BusinessWeek online. http//www.businessweek.com/bwdaily/dnflash/apr2001/nf2001044_127.htm April 4, 2001, pages 1-5.Junnarkar, Sandeep. Shares of Amazon Hit on Underperform Rating. cnet News.com. http//news.cnet.com/news/0-1007-200-2478430.html August 9, 2000, pages 1-3. Amazon Case Analysis set about -- GCSE Business Marketing CourseworkAmazon.com Case AnalysisInternal & External Matrix, Matrix Analysis and TOWS Summary, and Quantitative Strategic Planning MatrixExecutive SummaryThis discipline analysis serves the purpose to provide an analytical framework to evaluate Amazon.com from an internal and external perspective, and to provide strategic direction based upon the int ernal and external evaluation. The shift will begin with an introduction to Amazon.com.Introduction/BackgroundJeffrey Bezos, formerly a senior vice president for D. E. Shaw & Company, founded Amazon.com in 1994. D. E. Shaw is a Wall Street-based investment bank, and Mr. Bezos was assign to find good Internet companies in which to invest. During the summer of 1994, he stumbled across a Web site that showed the number of Internet users was growing by 2,300 percent per month. He quickly realized the vast potential of the Internet, and began putting together a list of possible products that he could sell on the World broad(a) Web. He eventually narrowed his list to music products and books. Although music products and books both had enormous potential, he eventually selected books because he believed that he could compete more equally in the book segment due to the lack of a very dominant player. In contrast, the music industry had only six major record companies. These comp anies controlled the distribution of records and CDs and, therefore, had the potential to lock out a new business threatening the traditional record-store format (Kotha, p.11).To begin his new venture, Mr. Bezos left New York and move to Seattle. He decided to move to Seattle for two reasons 1) Ingram Book Groups warehouse is located near Seattle and 2) Because of the Seattle areas reputation for computer expertise. In 1995, Amazon began selling books entirely online, operational out of a rented facility and using doors laid across sawhorses for desks. He soon was able to generate several million dollars from venture capitalists, and sales were astounding. sales for 1995, 1996, 1997, 1998 and 1999 were $0.5, $16, $147, $610 and $1,640 million respectively.Amazons customer base has increased dramatically from 180,000 in 100 countries in 1996 to 12 million in 160 countries by mid-1999. In 1998, Amazon began to expand into other product categories. The Company began to sell mu sic products and videos, and within two months o... ...fries & Company, Inc. April 12, 2001 pages 1-16.Market Guide - Comparisons for amazon.com, Inc. (AMZN). http//yahoo.marketguide.com/mgi/ratio/A13EF.html pages 1-5. Author unknown.Lund, Brian. eBay vs. Amazon The Motley Fool. April 3, 2001. http//www.fool.com/portfolios/rulebreaker/2001/rulebreaker010403.htm pages 1-4.Becker, Holly, Gross, Michael and Leichter, Stephanie. Amazon.com Inc. Amazons global Challenges. Lehman Brothers Global Equity Research. May 3, 2001 pages 1-16.The Economist (1997a). A Survey of Electronic Commerce. May 10 pages 1-18. Author unknown. Taken from above Kotha essay.The Wall Street journal (1996). Reading the Market How a Wall-Street Whiz Found a Niche Selling Books on the Internet. May 16 page 1. Author unknown. Taken from above Kotha essay.Eads, Stefani. Why Amazons Board is Part of the Problem. BusinessWeek online. http//www.businessweek.com/bwdaily/dnflash/apr2001/nf2001044_12 7.htm April 4, 2001, pages 1-5.Junnarkar, Sandeep. Shares of Amazon Hit on Underperform Rating. cnet News.com. http//news.cnet.com/news/0-1007-200-2478430.html August 9, 2000, pages 1-3.