atterns, tied to their e-mail and postal address (Economist, 1997a). Notes Alberto Vitale, chairman of Random House, Inc. (Wall Street Journal, 1996): 'Amazon is creating a database that doesn't exist anywhere else. Book publishers have never had much market data about readers, and some are already salivating for a peek into Amazon's files'" (Kotha, p. 16)."Amazon.com is considered to have one of the best senior management teams in the industry. Heavy reliance on stock options in employee compensation packages (and a [once] high-flying stock attracting lots of press attention) has enabled Amazon.com to fill its ranks with very motivated and bright people looking to 'make a difference' in the world of e-commerce" (Balanced Scorecard, p.1). "Meanwhile, Amazon's board is facing mounting criticism for apparently never having questioned Bezos on strategy, judgement, or financial matters. The board is too small, too clubby, and lacks the necessary independence to make serious judgement or interventions in Amazon's affairs. The board is too heavy with venture capitalists [that] are looking to cash out rather than build long-term shareholder value. [Critics also] decry the lack of retail experience on the board. All of this is complicated by the large ownership stake of Bezos, who holds some 32% of the Company's stock. That stake is a serious obstacle to anyone looking to shake up the board. The board certainly has a lot of brainpower. But it remains a tiny body to run a Company with thousands of employees and a $4 billion market capitalization" (Eads, p.1).Another concerning trend is customer churn increasing while repeat business declines. However, "sequential revenue growth has slowed meaningfully for most e-tailers in recent quarters" (D'Eathe, p.3), possibly indicating that the increased customer churn and declining repeat business are more a symptom of the general decline in the U.S. economy, as opposed to an internal weakness...
