1. Case Study Rebecca Dustman | April 29, 2013 | BUS 550 The Contemporary Firm

2.  July 2001  Could Amazon become profitable?  1997 Annual Report - letter to shareholders 19992000 Customers14 million20 million Sales$1.64 billion$2.76 billion Net Profit / Loss$720 million$1.4 million 2012 180 million $61 billion $39 million

3.  1994 founded  Web usage - 2300% growth per year  20 products  Books  Jeff P. Bezos  32 years old  President, Chief Executive Officer and Chairman of the Board  HQ Seattle, WA  "Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought"

4.  2001  1-Click Shopping, Advantage Program, In-store pick up, fulfillment centers  Free Super Shipping  Over $100 - Nov 2000  Over $25 - Aug 2001  2012?  2012  Amazon Prime  Bill Me Later  Frustration-Free Packaging  Free shopping for Android  Local Express Delivery  Fulfillment centers

5. 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Music UK & Germany DVD/Video Auctions Consumer Electronics And Toys & Games zShops Kitchen France & Japan Camera & Photo Toys “R” Us Marketplace Borders & Target Canada Office Products Apparel & Accessories NBA Sports & Outdoor Gourmet Food Health & Personal Care Jewelry Bombay Paris Hilton Jewelry Beauty Theater China Diane Von Furstenberg Wedding, Hollywood Rx New Gift Exp Timex Benefit Cosmetics Grocery Unbox Endless.com Go Indie, MP3 Askville.com Kindle Currency Conv TextBuyIt Office Supply TV Show Motorcycle & ATV Kindle 2 Xbox LIVE Outdoor Rec Basics Wheels Amazon Studios Italy Sports Collectibles Silk AmazonLocal MyHabit.com Spain AmazonSupply Game Collect GameCircle Textbook Rental Wine Brazil Enter. Collectibles

6. 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Internet Movie Database Alexa Internet Tool Crib Joyo.com Limited BookSurge LLC CustomFlix Labs, Inc. Shopbop.com Audible Fabric.com AbeBooks Zappos.com. BuyVIP.com LOVEFILM International Ltd Marshall Cavendish US Children’s Book Titles $175M investment LivingSocial Kiva Systems, Inc. Avalon Books IVONA Software Note: only shows US acquisitions

9.  Amazon Services, Inc & Subsidiary  Search Inside The Book  A9.com, Inc Subsidary  Presidential Candidates Feature  A9.com new website and A9 Toolbar  Alexa Internet data  A9 toolbar for Mozilla Firefox  A9.com Yellow Pages  Election 2008  CloudFront  Daily Text Alerts  Holiday Toy List  AmazonWireless  Kindle for iPhone, iPod Touch, PC, Blackberry, Mac, iPad, Android, Web  Amazon WebStore  Shopping on iPad  Price Check  Amazon Deal App  AWS CloudFormation  Prime – videos, Original Series  A9  Cloud  Kindle  Prime

10.  1997 – it’s always Day 1  2001 – collaborative filtering  2012:  Invention is in our DNA  Technology is the fundamental tool

12. Music UK & Germany DVD/Video Auctions Consumer Electronics And Toys & Games zShops Kitchen France & Japan Camera & Photo Toys “R” Us Marketplace Borders & Target Canada Office Products Apparel & Accessories NBA Sports & Outdoor Gourmet Food Health & Personal Care Jewelry Bombay Paris Hilton Jewelry Beauty Theater China Diane Von Furstenberg Wedding, Hollywood Rx New Gift Exp Timex Benefit Cosmetics Grocery Unbox Endless.com Go Indie, MP3 Askville.com Kindle Kindle 2 Xbox LIVE Outdoor Rec Basics Wheels Amazon Studios Italy Sports Collectibles Silk AmazonLocal MyHabit.com Spain AmazonSupply Game Collect GameCircle Textbook Rental Wine Brazil Enter. Collectibles Currency Conv TextBuyIt Office Supply TV Show Motorcycle & ATV Alexa Internet Tool Crib BookSurge LLC CustomFlix Labs, Inc. Zappos.com. LOVEFILM International Ltd Marshall Cavendish US Children’s Book Titles $175M investment LivingSocial IVONA Software Internet Movie Database Joyo.com Limited Shopbop.com Audible Fabric.com AbeBooks BuyVIP.com Kiva Systems, Inc. Avalon Books In millions

13.  2012 risks identified  Competition  Expansion strain  Fluctuation in operating results and growth rate  Optimization of fulfillment centers  Seasonality, inventory  Remain customer driven focus  Prime, AWS, Kindle, digital medial, customer experience

15.  Why did Jeff Bezos from Amazon.com choose books to sell online?  A. There were too many online CD sellers  B. There are far more items in the book category than any of the other categories  C. He always wanted to be a writer  D. He owned 450 books

16.  Why is the 1997 shareholders letter included in every annual report?  A. Reminder of the worst year they had  B. The best technology year for Amazon  C. Reminder it’s day 1 every day  D. The most Amazon stores launch that year

17.  What is amazon’s focus?  A. Customers  B. Profitability  C. Largest inventory  D. Increase stock