Amazon.com has achieved success beyond anyoneÃÂ¡ÃÂ¯s expectations in 1997, of which revenues had increased dramatically to $147.8 million in 1997, a 938 percent increase over 1996, while companyÃÂ¡ÃÂ¯s losses continued to widen. On the one hand, Bezos, the CEO of Amazon.com, faced the high pressure form the investors for Amazon.com to improve its margins and to achieve profitability. On the other hand, Bezos was adamant that Amazon.com would never push for profitability at the expense of compromising its core values. So Bezos was faced with two key strategic questions: what actions should Amazon.com take to improve its structural margin advantage over its competitors, and to overcome the disadvantages of its current business design? And what growth initiatives should it pursue to expand its franchise and grow its business? Recommendations 1. Establish franchises abroad and more foreign language website, such as French website, Chinese website for the convenience of abroad customers.
2. Establish a superstore to sell books. This has two benefits: one is earn money from the traditional business way; it is a good substitute for the inventory, which will serve distributing more efficiently and more economically.
3. Try to get the books from the publishers instead of wholesalers.
4. To advertise the products for other companies to offset the loss.
5. attract more firm customers