Essay on Amazon.com Case Study

1329 Words Nov 5th, 2013 6 Pages
Case Analysis
September 20, 2013
IS 6672-Information System and Business Strategy
Dr. Ryan-Fall 2013

1-2 Amazon Discussion Questions

1. On a scale of “1” (Very Poor) to “5” (Excellent), how would you rate Jeff Bezos as an entrepreneur? How would you rate him as an operating manager? Support your rating from case specifics.

I would rate Jeff Bezos 10 as an entrepreneur, and 7 as an operating manager.

On one hand, he identified book retailing as an industry segment that could exploit the power of emerging Internet technologies and found the Amazon.com, which enjoyed several years of tremendous growth, from an online bookstore into an online superstore, expanding the online business from retailing to auctions and
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Shareholders: In the early years, since Amazon had fewer physical assets, its asset turnover was extremely high. As Amazon.com began investing in its IT infrastructure and distribution network it increased its asset base and therefore had to look for new avenues to increase its revenues and to fuel its evolving business model.

3. Do you degree with the decision to pursue the Toy’s “R” Us deal? Support your decision with case specifics. Why did Amazon.com do the deal? Should Amazon.com do more deals like this? What impact does the Toys “R” Us deal have on the Amazon.com business model in early 2000?

I agree with the decision to pursue the Toy’s “R” Us deal.

Amazon.com found that its digital business infrastructure was a proprietary asset that would provide sustainable advantage, while supply chain, inventory management, and order fulfillment processes were difficult to efficiently scale across a diverse range of products. The dot-com stock market crash exacerbated the company's problems and, by mid-2000, many of its online retail partners had declared, or were heading toward, bankruptcy. This caused Amazon.com executives to reevaluate the company's business model. Rather than partner with dot-com retailers, attention shifted to traditional retailers that wished to develop online retailing capabilities and to upgrade their traditional distribution and fulfillment capabilities to enable the end-to-end

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