Amazon 03 - The Dot-Com Bubble

1,425 views

Published on

In 1999 a dozen of Walmart executives moved to Amazon creating plenty of frictions. Amazon employees were in their late 20 early 30s vs. Walmart’s 40-50s.
In the summer of 2000, in the span of three weeks, Amazon’s stock price lost half of its value (from $57 to $33). Employees started to get nervous and even top managers grew disillusioned. In March 2001, Amazon stock was 10$.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,425
On SlideShare
0
From Embeds
0
Number of Embeds
26
Actions
Shares
0
Downloads
26
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Amazon 03 - The Dot-Com Bubble

  1. 1. Pere Joan Ribas Barceló Amazon.com and the Dot-com bubble ! ! CIEE Study Center in Palma de Mallorca Entrepreneurship and Innovation Course Pere Joan Ribas Barceló perejoanribas@gmail.com
  2. 2. Dot-com bubble
  3. 3. Dot.Com Bubble Most of these investments went bust during the dot.com bubble and Amazon lost hundreds of millions.
  4. 4. CRISIS MANAGEMENT § Amazon announced plans to layoff 15% of its workforce and over the next year many Amazon executives resigned or were fired. § Amazon executives were worried that Walmart.com would start selling books at a loss to keep them out of the business. 1999 2000 2001 Source: Yahoo finance
  5. 5. The long way § Google started to compete with Amazon for customers and talented engineers. § In 2004 Amazon created it own search engine to compete with Google at A9.com but it was a failure and shut down in 2007. § Categories like electronics (1999) and jewellery (2003) were not yet profitable. § In 2004, 75% or Amazon’s revenues came from books, CDs and DVDs. Amazon needed to move quickly to digital. $150 $100 $50 2002 2003 2004 2005 2006 2007
  6. 6. Amazon.com TIMELINE 1-CLICK ORDERING PROCESS FREE SHIPPING ($100) FREE SUPER SAVER SHIPPING Toys and Electronics CD’s and DVD Bezos named Time’s Person of the Year Amazon Video MARKETPLACE PERSONALIZATION FEATURE Source: Yahoo finance Amazon reported its first profitable quarter Kindle Amazon prime Jewelry Amazon MP3 Kindle 2
  7. 7. Bibliography § The Everything store: Jeff Bezos and the age of Amazon, Brad Stone (2013) § One Click: Jeff Bezos and the Rise of Amazon.com, Richard L. Brandt (2011) § The Age of the Platform: How Amazon, Apple, Facebook, and Google Have Redefined Business, Phil Simon (2011) § Inside the Giant machine: An Amazon.com Story, Kalpanik S. (2011) § Amazon.com: Get Big Fast, Robert Spector (2002) § Amazon Top Seller Secrets: Insider Tips from Amazon's Most Successful Sellers(2009)
  8. 8. Videos § Amazon's Truth Behind the Click BBC Documentary § Amazon.com Full Story - World Biggest Online Retailer Revealed § Exclusive Interview with Jeff Bezos - Founder & CEO of Amazon § Amazing Amazon Story - Jeff Bezos Full Speech § TED: Jeff Bezos: The electricity metaphor § Amazon's Jeff Bezos looks to the future § Four Peaks: My interview with Jeff Bezos § Inside Amazon: Secrets of an Online Mega-Giant § Amazon's Truth Behind the Click § Jeff Bezos at the Stanford Graduate School of Business § Jeff Bezos on Amazon, Innovation, Customer Service, Kindle § Jeff Bezos discusses Amazon Business Model and Mission
  9. 9. Internet companies series!

×