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Amazon.com came online in the summer of 1995 with a mission to use the Internet to transform book buying into the fastest, easiest and most enjoyable shopping experience possible. According to their home page Amazon.com “since the summary of 1995 our customer base and product offerings have grown considerably, millions of people in more than 220 countries have made Amazon.com the leading online shopping site.” When you visit Amazon.com, you can buy books, music, videos, and more--by a click of the mouse. While the company has yet to turn a profit, they have revolutionized e-commerce by making customer interaction and feedback part of their brand image. Amazon’s method is to create a “community” of consumers. Much of their products speaks for themselves, so the customer feedback provides an objective measuring stick for the integrity of Amazon’s services. Individuals may express their opinions on all available products. Promoting such favorable business environment Amazon hopes to reinforce awareness and confidence in e-commerce customer population, as well as encouraging best practice among competitors. Amazon’s competitive threats come from other e-commerce, Web sites like: Walmart.com, Barnes & Noble.com, Ebay.com, etc. Amazon knows that customers are sensitive to product quality and price, and personal information security so at Amazon.com they can expect to benefit from all three offerings. Amazon.com has a world-class management team led by Mr. Jeffrey P. Bezos founder and company’s Chairman of the Board and Chief Executive Officer. He has exceptional knowledge of the industry. As stated in the home page new release “On a single Saturday in July, 100 airplanes and 9,000 trucks delivered more than 250,000 copies of "Harry Potter and the Goblet of Fire" to customers,” providing the hottest kid’s book faster than local bookstores. This action clearly shows the powers of our suppliers and buyers. Amazon.com is committed to customer satisfaction despite our accumulated deficit of $2.3 billion and a deficit of $967 million in stockholders equity in FY 00. Amazon lost $720 million in fiscal year 99, which ranked us in the top five of Fortune 500’s top losses for that year. Amazon.com fits into the monopolistic competition category. Consumers can purchase nonperishable products online such as: literature, music, videos, coins, stamps, tools, etc. With e-commerce sales estimated to hit $200 billion by 2004, it's imperative that we look at environmental impact. On the surface, e-commerce industries such as Amazon.com appear to offer a big environmental bonus by eliminating millions of trips to malls. However, after closer examination, one can see a net environmental impact that is decidedly murky. According to Scott Matthews, a research scientist involved in assessing environmental impacts of technology at Carnegie Mellon University in Pittsburgh, “On-line shopping does reduce commuting in gas-guzzlers and the need to build more retail stores. But every book ordered on the Web, is heavily packaged and moves on a transportation network that taps many resources.” So instead of shipping, 10 books in one box, now its 10 books heavily packaged in 10 boxes to e-commerce customers. Governmental regulatory initiatives include the establishment of an Expert Group to advise the Minister for Financial Services and Regulation on consumer protection aspects of e-commerce, and business on consumer protection issues and negotiating a range of multi-lateral and bilateral international agreements. The key international policy initiative for e-commerce is the Organization for Economic Cooperation and Development (OECD) Guidelines for Consumer Protection in the Context of Electronic Commerce. The OECD is made up of 29 member countries and is one of the world's peak bodies for the development of economic and social policy. The Guidelines were released in December 1999 and are now being used by most member countries as the chief policy tool for the regulation of e-commerce. A major concern for most consumers is online security. A Web site's privacy policy is deceptively helpful because lengthy tracts of legalese only exacerbate consumer fear. Winning over the reluctant consumer is probably the biggest challenge to e-commerce industry. Amazon.com framework identifies a number of key issues that need to be addressed to ensure that there is a safe and efficient online environment. These key issues are: Information - the provision of adequate information to consumers; Payment - establishing secure methods for paying online; Redress - availability of effective and accessible redress avenues; and Privacy - protection of personal information in the online environment. Amazon.com is a large corporation with more than thirty million customers. Currently, we are listed on the NASDAQ register under AMZN at $12.19 per share. In contrast, shares were $7.20 a share in Oct 2001 and $91.50 in Dec 2000. In comparison to competitors such as Barnes & Nobel, Amazon consistently brings in lower gross profits, although we have great customer service and loyal customers. According to CEO, Mr. Bezos, during a Channel 4 (KNBC) new clip on 4 Dec 01, “Amazon may incur a profit during the fourth quarter of 2001 for the first time, since its inception.” Profits can be attributed to customers that are traveling and do not want to take packages along on planes, buses, and trains, and those wishing to avoid long post office lines. Amazon.com is not affect by seasonal buying trends, although sales peak during the holiday season (fourth quarter). As an e-commerce business Amazon has a relatively unlimited reach capacity. Accessibility is virtually instantaneous with many interlinking web sites, giving us tremendous marketability. Power of suppliers-- NEW YORK, Dec 11 (Reuters), electronics retailer Circuit City Stores Inc., aims to revive in-store customer traffic, announced an expanded selection of items that can be bought online via Amazon.com and then picked at any Circuit City at more than 600 locations. Just in time for the holidays, Amazon.com and Circuit City Stores are increasing selection and adding convenience for Amazon's consumer electronics shoppers by launching immediate in-store pickup at Circuit City Stores nationwide on thousands of electronics items. “In-store pickup has been a popular consumer offer, and we believe that Amazon.com electronics shoppers will love this option as well. Moreover, if there's a problem with a product purchased at Circuit City, it can be returned to any of our more than 600 Superstores nationwide.” One could expect to see a growth in this type of alliance between Amazon.com and other retailers. A sluggish retail environment, coupled with mounting corporate layoffs has also restrained sales growth as many shoppers have chosen to defer buying big-ticket items. "I think this deal will mean more visibility for Circuit, which is one thing that they have been struggling with over three to four quarters," Kuhrt at Midwest Research said. "Anything Circuit City can do to drive incremental traffic to their stores is positive. I can't quantify what the sales impact is going to be but I would imagine that they are going to have high visibility on the Amazon Web site," he added. Circuit City shares traded up 42 cents or 2.04 percent to $20.97 on the New York Stock Exchange in the afternoon, while Amazon gained 58 cents or 4.98 percent to $12.23 on the Nasdaq stock market. Amazon utilizes sophisticated computer software to manage millions of transactions, and fraud prevention. A specialized set of applications is employed to accept and validate orders, flag restocking, and ensure timely shipment of products across the globe. In addition to the U.S. based web site, four international focused sites are located in the United Kingdom, Germany, France and Japan. Amazon has five million square feet of warehouse space worldwide. The product line is socially acceptable, access is user friendly, and the site does not contain any derogatory items. Amazon’s goal to establish and maintain a long-term relationship with our customers is reinforced by our outstanding customer service teams. Although Amazon strictly adheres to all regulatory mandates, both domestically and in foreign locations, some experts speculate that they may crumble in about 18 months. The possible demise of Amazon will result in massive layoffs worldwide and will hurt suppliers and consumers alike, and no doubt the economy will feel the pinch. Tragic recent events in the world have boosted e-commerce firms such as Amazon’s sales momentum. The current political climate will strengthen e-commerce sales frequency as consumers attempt to avoid security checks of parcels at post offices, airports, etc. Amazon has also strengthened its positive social image worldwide, by charitable contributions of millions of dollars toward the 9-11 tragedy relieve fund. Despite its aim at providing for diversity many feel Amazon.com is taking on too much and has become economically unstable. According to statistical analysis of News.com, Amazon.com has had little or no gain of disposable income from books, music and video sales for six consecutive quarters. Analysis show that much of the decline have been due to too many investments, price cuts, and difficulty competing effectively in any one area. Amazons solution to improving its economic weariness is to cut prices in an attempt to entice customers to the web site, improve the shopping experience for book buyers, and regain ground from its rivals. Will this improve the economic instability? We must wait and see. Student recommendations necessary for Amazon.com to rebound to a healthy economic status are: (1) re-evaluate their marketing strategy (2) learn to invest wisely, (3) regain employee confidence in management, (4) improve utilization efficiency of our capital assets, and (5) restructure the company for efficient operation. Bibliography: References Sloan, A. (2001). Bezos says amazon.com will turn 'pro forma operating' profit by fourth quarter, 2001 ceo says he isn't seeking merger or buyer for company. Wall Street Research Net. Retrieved April 1, 2001 from the World Wide Web: http://www.wsrn.com/apps/news/art.xpl?id=1881913&f=NEWS&s=AMZN Loomis, C. J., & Watson, N. (2000). Amazon. Fortune. Retrieved April 15, 2001 from the World Wide Web: http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=00001296Sloan. Amazon.com’s year 2000 form 10-K(2001). Retrieved April 1, 2001 from the World Wide Web: http://www.iredge.com/IREdge/IREdge.asp?c=002239 Death on the Internet – 1 (2001). Wall Street Research Net. Retrieved April 1, 2001 from the World Wide Web: http://www.wsrn.com/apps/news/art.xpl?id=1900596&f=NEWS&s=AMZN Hagens Berman, llp files class action suit against amazon.com and certain of its officers and directors for violations of the federal securities laws (2001). Wall Street Research Net. Retrieved April 15, 2001 from the World Wide Web: http://www.wsrn.com/apps/news/art.xpl?id=1900761&f=NEWS&s=AMZN King, C. (2001). Amazon to cut product offerings, drop layoff clause. Internet News. Retrieved April 1, 2001 from the World Wide Web: http://www.internetnews.com/ec-news/article/0,,4_578031,00.html. Chait, M. (2001). Amazon releases preliminary q4 highlights. Internet News. Retrieved April 1, 2001 from the World Wide Web: http://www.internetnews.com/ec-news/article/0,,4_554311,00.html Cox, B. (2001). Amazon tops in online ad spending. Internet News. Retrieved April 1, 2001 from the World Wide Web: http://www.internetnews.com/ec-news/article/0,,4_534171,00.html Cox, B., Chait, M. (2001). 1,300 layoffs at Amazon. Internet News. Retrieved April 1, 2001 from the World Wide Web: http://www.internetnews.com/ec-news/article/0,,4_580621,00.html Stepankowsky, P. L.(1998). Cyberspace hits the real world. 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