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Amazon.com: The Brink of Bankruptcy

Subject: Consumer Behavior

Paper Model: APA

Paper Type: Assignment

Total Words: 741

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Case: Amazon.com: The Brink of Bankruptcy
) Trace the evolution of the Amazon.com business from the company's launch in 1995 to the dot-com collapse in 2000. a) How did the company's strategy change over time? b) How did capabilities evolve? c) What value did it deliver to all stakeholders?
) On a scale of “1” (Very Poor) to “5” excellent, how would you rate Jeff Bezos as an entrepreneur?  How would you rate him as a manager
The Amazon.com platform is comprised of brand, customers, technology, distribution capability, deep e-commerce expertise, and a great team with a passion for innovation and serving customers well”. 


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Case: Amazon.com: The Brink of Bankruptcy

Q1) Trace the evolution of the Amazon.com business from the company's launch in 1995 to the dot-com collapse in 2000. a) How did the company's strategy change over time? b) How did capabilities evolve? c) What value did it deliver to all stakeholders?

At the Collapse of dot-com, Jeff Bezos the CEO of Amazon established his online store in July 1995 from a small place, which was hardly a one-car garage and was supported with the high-speed internet connection. The idea of Bezos worked and soon the company became the number one online bookstore. Company received great success and within first two years of the business, the worth of the company reached to the barrier of $148million with more than 2 million customers.

After receiving great success in the initial business, the executives set new milestone and decided upgrade business with the addition of online music and video stores and the plan was executed in 1998. It took a small period of four months to grasp the emerging business in online music and the second business idea of Amazon executives worked equally and became popular as a trendsetter. The online videos and music received great popularity and the company became number one within merely 45 days period.

At one side, the internet lend them a great hand of progress, but the popularity of internet created new challenges for the company as it was period when competitors started to rise in the market. Competitors such as Barnes & Nobels and Bertelsmann stepped forward with heavy investment to tackle the Amazon. However, even the heavy investment went ineffectual. In this response, it is declared by the analysis that the first mover advantage of the Amazon maintained the real difference. However, it is believed that there were some other driving factors linked with the business strategy of the Amazon.


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