AMAZON.

COM

N.S.Krishna Raja

9UTB16

Amazon.com is a popular site in which more than 5 million book titles are

available. In the 3rd quarter of 2007 the websites net income increased 2.5% and the revenues

increased to 13 %. There were also various services offered by amazon.com to web developers,

independent film and music producers. They have websites according to the countries they are

located. They often keep on developing new product offerings, new services and partnerships. In

1994, it was founded by Bezos and two associates in a converted garage. In 1996 the book sales

exceeded $10 million.

Internet is one of the major medium of shopping. It was developed very faster in

such lots of people in America started using online sites to purchase their product. Also some of

the social network sites have been a very popular thing like Myspace and Facebook which

mainly targeted the college students and young adults

There was also an economic issue like such consumer confidence increases and

consumer purchase more online and when consumer has less confidence in the economy, they

purchase only fewer consumer items. There has also been a challenge from International

economies to internet consumer companies. When it comes to currency a strong dollar will hurt

the value of international currencies and a weak dollar will help the value of international

currencies.
Competitors:

 Barnes and Noble

 Borders Group

 Books-A-Million

Some of the internal issues are:

The main strategy which they have designed in marketing is to increase the customer

traffic for the company website which creates product re purchase, awareness of product,

strengthen their brand name. The financial issues is 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. Amazon.com balance sheets shows increase in total assets from 2005 to 2006($3.7

billion to $4.4 billion). Increase in current liabilities of about $600 million during this same time

($1.9 billion in 2005 to $2.5 billion in 2006).

The company has a high competition in which many more people will entry the market as

their competitor which they must find a way to overcome it. And as they are in many countries

they also must find a new product or service to new countries where they expand. There has been

a massive innovation of newer technologies each and every year in which they must be updated

to meet the market.