Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : BSM0005

Year : 2004

Industry : Internet and e-commerce

Region : USA

Teaching Note:Available

Structured Assignment :Available

Introduction:Amazon.com (Amazon), the biggest online retailer, was an outcome of several years of planning by Jeff Bezos. Bezos, who started Amazon in 1995, had to face severe criticism about the viability of his business model, as retailing was synonymous with physical stores. Analysts felt that online retailing would fail, but Bezos was so confident about his venture that he left his secure job to take up his new business.

Amazon.comwas an instant success among the Internet users, with sales increasing rapidly year after year. His businessmodel was acclaimed byweb users as well as analysts because of its customer focus. Amazon.com was easy to use; customers could place their orders online and pay through cheque, money order or credit card. This helpedAmazon gainmore number of customers. The Time magazine in 1999 named JeffBezos, ‘TheMan of the year’, who exclaimed, “I firmly believe that this is the Kitty Hawk era of e-commerce.We’re going to see some amazing stuff over the next 10 years.”