Strategic Planning - Case Study

Essay by morgan1234a October 2004

download word file, 2 pages 2.0

1. History Background & Development

Jeff Bezos was researching the Internet in the early 1990s when he realized that book sales would be a perfect fit with e-commerce because book distributors already kept meticulous electronic lists. Bezos founded in 1994. After months of preparation, he launched a Web site in July 1995 and had sales of $20,000 a week by September. Bezos and his team kept working with the site, such as one-click shopping, customer reviews, and e-mail order verification. went public in 1997. Moves to cement the brand included becoming the sole book retailer on America Online's public Web site and Netscape's commercial channel. In 1998, the company launched its online music and video stores, and it began to sell toys and electronics. By midyear, had attracted so much attention that its market capitalization equaled the combined values of rivals Barnes & Noble and Borders Group, even though their combined sales were far greater than Amazon's.

As part of a deal to expand their marketing partnership, America Online invested $100 million in in July 2001. In the fourth quarter of 2001, reported its first profit ever.

SWOT Analysis

2. Strength

· Global presence

· Inventory provided on consignment

· Location of business

o No sales tax

o Close to distribution centers

o Desirable area will attract employees

· Quality technological processes and procedures

· Repeat customer's


· Lack of marketing expertise

· Undifferentiated products and service (i.e. in relation to competitors)

· New area of business/ management lacks experience

· Rapid growth

· Has yet to make a profit

3. Opportunity

· Internet is a developing market.

· Mergers, joint ventures or strategic alliances

· Move into new market segments that offer improved profits

· International market

· Use brand...