Competitive Strategies Case Study

Amazon in 2005: Success and the Future Challenge

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Abstract:

Amazon.com, the world’s leading online retailer had survived for nine long years without annual profits because it was guided by a long-term vision that put into place strategies for research, and the development of technology infrastructure. The company finally turned the corner by posting profits for the first time in 2003. The case details the diversification of Amazon.com into a software developer for other online retailers.

With its history of not posting profits, and having turned the corner recently, the big question was whether Amazon would survive the onslaught of major competitors like E-bay, and continue to retain the No.1 position while at the same time realise reasonable levels of earnings to satisfy shareholders. This was the dilemma that founder Jeff Bezos and his team had to address.

Pedagogical Objectives:

• To study Amazon’s expansion and growth despite posting losses for many years
• Make a SWOT analysis of Amazon and evaluate its strategy for the future.

Keywords : Amazon; Online retailing; E-commerce; Cross-selling; Management strategies; Competitive Strategies Case Study; Digital programs; Technological innovations; Jeff Bezos; Amazon Upgrade; Dot com companies; Search engines; Software platform; Competitive strategies; Branded site; Buyer behavior

Contents : 
The Operational Split
Competition
Revenue Flow
Amazon.com timeline