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Amazon.com Case Study - E-Commerce Business Strategy at...

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E-Commerce Business Strategy at Amazon.com E-Commerce Business Strategy at Amazon.com Group Case: Amazon.Com – Pages 573 – 581 Group Members: Olabisi Ajala Methsika Munansinghe Trina Samuel MIS 677: E-Commerce Spring 2009 Page 1 of 12
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E-Commerce Business Strategy at Amazon.com 1. Overview of the Company’s History Amazon.com is a Fortune 500 electronic commerce company based in Seattle, WA. In 1994, Jeff Bezos became the founder and CEO of Amazon.com. It was one of the first major companies to sell goods over the Internet [8]. The company was originally incorporated in 1994 in the state of Washington and was reincorporated in 1996 in Delaware [8]. Jeff Bezos saw the potential of the internet to sell books online where the largest bookstore might sell up to 200,000 titles, where he saw that using the internet could sell many times more [8]. Amazon.com was launched on the web in June 1995 and began service in the following month. Amazon.com started out as an online bookstore and then quickly diversified by adding other items such as VHS tapes and DVDs, music CDs, software, video games, electronics, MP3s, clothing, furniture, toys and even food items. Amazon.com had its initial public offering on May 15, 1997, trading on the NASDAQ, as the world first electronic stock market exchange under the symbol AMZN [8]. When Amazon.com first entered the market, it had no big competition and there was no main traditional player. The number one supplier, Barnes & Noble, had only about one-tenth of market share and no online presence [7]. While there was a multitude of booksellers on the web, including book Behemoth, Barnes & Noble and the second largest bookseller, Borders, Amazon.com still had the advantage of being there first. When Amazon.com moved into new product lines like CDs, video games, pet supplies, computer software, electronics, and provides services like auctions and greeting cards, it found itself up against dominant players in their markets, either offline, online or both [7]. In 1999, Amazon.com evolved into the largest retailer with the work widest selection and in the mid-2001, Amazon.com owned $19 billon market value through carrying out its wise investment and partnership, and also its successful business strategies [7]. In 1999, Amazon.com invested in HomeGrocer.com and DrugStore.com to expand its market share. The same year Amazon.com partnered with Sotheby’s to launch Sothebys.amazon.com which brought authenticated art and collectibles to purchase via auction. In 2001, it partnered with Borders.com to support its sales initiative [7]. Amazon.com also owned Alexa Internet, Accept.com, Exchange.com, a9.com, (which allow users to search within the text of books as well as search for text on the web), and the Internet Movie Database [8]. Page 2 of 12
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E-Commerce Business Strategy at Amazon.com 2.
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