Case Study 1: Amazon, Inc.: Retailing Giant to High-Tech Player?

Case Abstract: Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July, 1994, and sold its first book in July, 1995. Amazon quickly grew from an online bookstore to the world's largest online retailer, greatly expanding its product and service offerings through a series of acquisitions, alliances, partnerships and exclusivity agreements. By 2010, 43% of Amazon net sales were from media, including books, music, DVDs/video products, magazine subscriptions, digital downloads, and video games. More than half of all Amazon sales came from computers, mobile devices including the Kindle, Kindle Fire, and Kindle Touch, and other electronics, as well as general merchandise from home and garden supplies to groceries, apparel, jewelry, health and beauty products, sports and outdoor equipment, tools, and auto and industrial supplies. Amazon faced several other challenges including those from state governments that wanted it to collect sales taxes so that it did not adversely compete against local businesses. Amazon was at a crossroads with regard to its push into technology vs. its general merchandise.

CASE OBJECTIVES: 1. To discuss product innovation: eReaders and tablets.

2. To discuss online sales and streaming.

3. To discuss domestic/international online growth opportunities.

4. To discuss the merits of same day delivery.

5. To discuss sales tax collection and state govt. relations.

The paper should be 10-12 typed pages, due in week 4, should address each of the bullet points listed below. You will need to research Amazon and apply 10 resources to support this case as it aligns with Amazon. The page count does not include the following: Title page, Executive Summary or Reference page(s). The page count is content of case analysis.

Your completed analysis will include the following:

• Title page aligned with APA

• Executive Summary (less than one page)

• First page of analysis in accordance with APA addressing the following: Historical and Current Information

• Governance structure i.e. board of directors, CEO, COO, etc.

• External Environment (be sure to address the embedded questions below in this section)

• Internal Environment (again address the embedded questions below in this section)

• Analysis of Strategic Factors (again address the embedded questions below in this section)

• Recommendations of strategic initiatives for the organization

• Conclusion and Summary

• Reference page(s) following APA guidelines

As a reminder and as a graduate student, you are required to align all information to APA format and style. You will apply intext citations to support your information and cite it properly. You will be required to write in formal professional English throughout the case analysis. When writing a case analysis, you never write in first or second person unless you are applying a direct quote. You write in neutral voice and just state facts. Do not interject your personal experiences or thoughts in a case analysis. In the recommendations and conclusions, you are welcome to give your opinion and thoughts.

As you research Amazon and its dilemma, be sure to respond to the following questions within the case study template. You do NOT need to restate the questions--just be sure to address the question within your analysis. I am trying to give you some specific areas in the case analysis to address (some of these are current initiatives that you will find in your readings on this company).

1. Is Amazon becoming a High-Technology Company? (Current Situation/History)

2. Can Amazon compete with Samsung, Sony & Apple? (External Environment)

3. Should Amazon collect state sales tax in every state? (Internal and External Environment)

4. Should Amazon invest in same day delivery? (Internal Environment)

5. Does it make sense for Amazon to sell Kindle below its cost? (Analysis of Strategic Factors)

6. Should Amazon expand its streaming content? (Analysis of Strategic Factors)

NOTES: In the Governance section, be sure to discuss and address all Governance for Amazon i.e. who is the CEO/COB, who are the Vice Presidents, how are the Board of Directors selected or elected, terms for boards, any financial commitments for board members, sub-committees--the whole governance structure for Amazon

As you analyze the strategic initiatives for Amazon, you will make recommendations for innovation and creativity of strategic initiatives to keep Amazon competitive in this market (remember that our second case is Netflix which is also in this market)

As you write your summary, you will conclude the case by possibly addressing the future for Amazon.

Finally align your Reference page(s) with APA.