III. Mission Statement Analysis
IV. External Evaluation
A. Opportunities and Threats
1. External Factor Evaluation Matrix
2. Competitive Profile Matrix
B. Opportunities and Threats Summary
V. Internal Evaluation
A. Ratio Analysis
B. Strengths and Weaknesses
1. Internal Factor Evaluation Matrix
C. Strengths and Weaknesses Summary
VII. Alternative Objectives
VIII. Strategies and Alternative Strategies Evaluation and Selection
X. Exhibits- SWOT Matrix, SPACE Matrix, Grand Strategy Matrix,
Internal & External Matrix, Matrix Analysis and TOWS Summary,
and Quantitative Strategic Planning Matrix
This 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.
Jeffrey 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 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 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 distribution of records and CDs and, therefor...
Kotha, Suresh. November 1997. "Competing on the Internet: The Case of Amazon.com" European Journal of Management; pages 1-27.
Bartlett, Phillip and David, Fred. "Amazon.com, Inc.-2000." Business Case from Strategic Management Concepts and Cases, 8th ed., Fred. R. David, 2001; pages 21-27.
"Amazon.com: Balanced Scorecard" http://www.killerstrategy.com/amazon/azbsc.htm ; pages 1-6, author unknown.
Reamer, Scott and Smith, Allyson. "Amazon.com: Our Delicate Bullishness Rests on Platform Monetization." SG Cowen Perspectives. May 1, 2001; pages 1-12.
Patel, Jeetil J., and McCluskey, Neil. "Amazon.com, Inc." Deutsche Banc Alex. Brown Equity Research. April 23, 2001; pages 1-16.
D'Eathe, Sara and Bernstein, Debra. "Amazon.com - Underperform: Current Business Model Inconsistent with Profitability, In Our View." Thomas Weisel Partners Merchant Banking. March 2, 2001; pages 1-22.
Fast Company (1996). Who's writing the book on Web business? October-November, pages 132-133. Taken from Kotha essay above.
Farmer, Melanie A. and Junnarkar, Sandeep. "Amazon-Toysrus.com Deal Signals Strategy Shift." c|net News.com. http://news.cnet.com/news/0-1007-200-2486883.html ; pages 1-3.
Legg, Michael F., Amoroso, Louis P., and Bilanin, Jared A. "AMZN: Alliance With Borders A Positive, Expands Presence Offline." Jeffries & 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.: Amazon's International 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 Amazon's 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." c|net News.com. http://news.cnet.com/news/0-1007-200-2478430.html ; August 9, 2000, pages 1-3.