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

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Click to edit Master subtitle style 4/20/11 Amazon.com in the year 2000 By Yong Cao
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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
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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.
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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. This method saved cost and improved customer
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This note was uploaded on 04/19/2011 for the course ACCOUNTING 610 taught by Professor Dr.fan during the Fall '10 term at California State University , Monterey Bay.

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

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