{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Amazon chapter 10 case - Amazon.com in the year 2000 Click...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style 4/20/11 Amazon.com in the year 2000 By Yong Cao
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4/20/11 Introduction In June 22, 2000, a credit analyst at Leman Brothers, issued a report questioned the financial conditions of Amazon.com. The analyst raised questions about the cash flow and management of working capital of Amazon, claiming it had encountered same problems like “real world” retailer. In February 1999, the company had issued $1.25 billion in convertible debt, a year later, it issued another $680 million convertible debt. One day after the report announced, the price of Amazon’s convertible debt dropped 15%, and its
Background image of page 2
4/20/11 Background Jeff Bezos founded Amazon.com in 1994, it began selling books online in 1995, and went public in 1997. Reasons of Jeff’s preferences to book selling online 1. The limitations of physical store 2. The existing market is large 3. The book publishing and retailing industry were relatively fragmented. The company was located in Seattle,
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4/20/11 Evolution of Corporate Strategy Self distribution Amazon’s early period strategy: sell all, carry few In 1997, Barnes & Noble opened its first online store and used its distribution center to fill orders from online customers.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}