Amazon.com

Paper Summary:

This paper explains that Amazon's core book-selling operation moved into profitability, but its overall performance has continued to operate at a loss as it invests in new areas and products as part of its 'land grab' strategy. The author points out that Amazon.com is still a viable business entity with impressive market share and brand advantage in an ever-expanding online World market, but Amazon has a long way to go to be the world's first pure-play online retailer with profit margins similar to traditional retail giants such as Sears. The paper relates that Amazon.com venturing into new arenas beyond books has been successful from a consumer viewpoint as indicated by its recently being named the best place to shop for electronics in a leading consumer research magazine.

Table of Contents
Introduction
Customer Value-Add
Recent Results
Growth with a Twist
Conclusion

From the Paper:

"For the successful retail businesses cited above, the strategies evolved over time and illustrated the innovation and determination of the respective organization. For the most part, traditional retail successes have offered lower cost and greater selection in one convenient location. Similarly, Amazon will need to employ a slow-growth e-business "evolution" strategy rather than the pre dot com bust "revolution" strategy that many companies espoused. Coltman et al describe the strategy as "an incrementally more efficient medium rather than a price revolution. For example, the real prices of books and CDs were some 9 per cent to 16 per cent lower through online retailers than through traditional booksellers in 1998 and 1999" ."

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