Case Analysis of Amazon.com 2007

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AMAZON.COM I. TIME CONTEXT The time context had occurred last 2007. As stated the company, Amazon.com, a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden. II. VIEW POINT Jeff Bezos, Founder & CEO of Amazon.com. He was famous for being one of the richest men in America and for founding the popular online book store Amazon.com. Bezos has been listed on the Forbes richest people in the world list since 1999 with a multi billion dollar net worth. Bezos was Time magazine's Person of the Year for 1999. III. CENTRAL PROBLEM The problem seems to be the financial unsoundness of the company specifically the low ROI and net profit margin due to the decrease in net income. As stated in the case and shown in Exhibit 9, the statement of operations indicates an increase in Amazon’s sales from 2005 to 2006 ( $8.5 billion to $10.7 billion) and a decrease of net income during the same time of almost $169 million (net income of $190 million in 2006 and $359 million in 2005). Also noted in exhibit 9 that the company had increases in expenses of fulfillment, marketing, and technology from 2005 to 2006. IV. OBJECTIVES Must: To be able to cut costs and regain loss in net income. Want: To be able to further enhance strategy and recuperate in the collection of debts in

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