Amazon Case Analysis Essay -- GCSE Business Marketing Coursework

Amazon.com Case AnalysisInternal & External Matrix, Matrix Analysis and TOWS Summary, and Quantitative Strategic Planning MatrixExecutive SummaryThis case psycho compend 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 internal and external evaluation. The case entrusting 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 assigned to adventure 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 Wide 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 evenly 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 companies controlled the dissemination of records and CDs and, therefore, had the potential to lock turn up a new business threatening the traditional record-store format (Kotha, p.11).To begin his new venture, Mr. Bezos left New York and moved 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, operating turn out of a rented facility and using doors laid across sawhorses for desks. He soon was able to generate several trillion dollars from venture capita lists, and sales were astounding. Sales for 1995, 1996, 1997, 1998 and 1999 were $0.5, $16, $147, $610 and $1,640 zillion 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 elaborate 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 International Challenges. Lehman Brothers spherical 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). learning 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. credit lineWeek 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 Essay -- GCSE Business Marketing CourseworkAmazon.com Case AnalysisInternal & External Matrix, Matrix Analysis and TOWS Summary, and Quantitative Strategic Planning MatrixExecutive SummaryThis case 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 internal and external evaluation. The case 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 assigned to get word 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 Wide 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 evenly 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 companies contro lled the statistical 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 moved 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, operating 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 din into other product categories. The Company began to sell music pr oducts 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 International Challenges. Lehman Brothers globose 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). rendition 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/nf20010 44_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.