1) The document discusses Amazon's expansion into offline retail through the opening of physical stores like Amazon Books, AmazonFresh grocery delivery and pickup locations, and Amazon Go convenience stores with no checkout lines.
2) It provides an overview of Amazon's business segments and growth areas like AWS cloud computing. Amazon is trying to replicate its success in e-commerce by entering the large $4 trillion offline retail market.
3) The strategies and formats of Amazon's physical store concepts are described, including how Amazon Books incorporates online reviews and pricing, AmazonFresh offers grocery delivery, and Amazon Go eliminates checkout lines. Amazon aims to provide an integrated online and offline shopping experience.
Strategies adopted by amazon during the recession along with generic business...Md. Nazmus Sakib
The assignment reflects the generic strategies of Amazon.com. it undertakes to highlights the financial performance of Amazon during the recession and reasons behind the success of that time. Finally, it focuses on the lessons for a manager from its strategies.
Case study on amazon.com's supply chain management practices | MBAtiousaneesh p
The case study provides an overview of Amazon.com's inventory management. Jeffrey Preston Bezos the founder of Amazon.com launched the company when he realized that Internet provided immense scope for online trading. Although the site was originally launched as an online bookstore it eventually offered several other products to keep abreast of the competition. The case study takes a look at the different products and features offered on the site. The case also discusses Amazon's value propositions and its criteria for choosing strategic partners.
Strategies adopted by amazon during the recession along with generic business...Md. Nazmus Sakib
The assignment reflects the generic strategies of Amazon.com. it undertakes to highlights the financial performance of Amazon during the recession and reasons behind the success of that time. Finally, it focuses on the lessons for a manager from its strategies.
Case study on amazon.com's supply chain management practices | MBAtiousaneesh p
The case study provides an overview of Amazon.com's inventory management. Jeffrey Preston Bezos the founder of Amazon.com launched the company when he realized that Internet provided immense scope for online trading. Although the site was originally launched as an online bookstore it eventually offered several other products to keep abreast of the competition. The case study takes a look at the different products and features offered on the site. The case also discusses Amazon's value propositions and its criteria for choosing strategic partners.
AMAZON.COM’S EUROPEAN DISTRIBUTION STRATEGYHüseyin Tekler
Amazon.com, Inc., known as Amazon, is an e-commerce and cloud computing company based in the United States. Founded on July 5, 1994, by Jeff Bezos in Seattle, United States. It is the world's largest shopping site in terms of both total sales volume and market value. Considering that Amazon sales thousands of kinds of products in many countries, it is clear that there is a need for highly developed SCM. To start with, Amazon’s SCM has a strategic fit with its competitive strategy of being the retailer of choice for its customers. The combination of multi-tier inventory management, superlative transportation, and highly efficient use of IT, and its wide network of warehouses are all geared towards aligning its SCM with its competitive strategy. In this paper, a detailed review of Amazon's SCM will be made.
1Managerial Report for Case Problem Amazon.com lnc.”Execu.docxdrennanmicah
1
Managerial Report for Case Problem “Amazon.com lnc.”
Executive Summary
Today, Amazon is no longer the “online book-selling store” people used to be familiar with, but a very diversified company with an open platform. It not only has a third-party vendor platform that can attract numerous customers but also has achieved a good result in the logistics, film, and television industry. Moreover, Amazon is one of the first group of enterprises to enter the cloud service. Amazon’s leader Jeff Bezos proposed Amazon’s exclusive flywheel business model, which totally demonstrates his business insights and philosophy. Amazon ranks among the world’s top companies through its strengths in customer experience, logistics, cloud services, etc. Also, Amazon has been devoted to the technological area such as artificial intelligence and cloud services. Even faced with intense competition from the leading technology companies like Microsoft, IBM, and Google, Amazon has achieved excellent performance. This report will analyze Amazon’s flywheel model and its core competency, also introduce the competition between Amazon and Microsoft in cloud services and the future development direction of Amazon.
The Business Model of Amazon
Amazon has three core businesses. The first one is Amazon Prime, it is a paid membership system. When customer become a member of Amazon Prime, they can purchase any products on Amazon.com and enjoy free and fast delivery. The second one is the third-party seller platform, Individual merchants can create an online store on Amazon to sell their products. The third one is the AWS (Amazon Web Service). It’s a cloud service and offers a broad set of global cloud-based products including compute, storage or databases and so on. These services help organizations move faster, lower IT costs and scale (Cloud Products, Amazon Official Website). Whether a startup or a large enterprise, they can build their company’s IT system on Amazon’s cloud service system. It’s cheaper and more stable than building your own system.
These three core business looks unprofitable at first, but in fact, they are like a small saw tooth on a huge gear. The Prime and low price product can let the customer keep purchasing on Amazon, while the cloud and logistic service keep the supplier to work with Amazon. More suppliers will attract more customers, vice versa, the more the customers purchase, the more supplier is inseparable with Amazon. These have enabled Amazon to gain more with costs fixed (like logistics and warehouse) and provide customers with a lower price and turns the huge flywheel. Turning the stationary flywheel up must spend a lot of efforts at the beginning. However, in fact, every effort will not be wasted, and the flywheel will turn faster and faster. When a high speed is reached, no more effort is required and the flywheel can maintain its original state of motion.
Amazon’s Core Competency
Amazon’s success relies on robust operations, strict management.
Amazon might be the number 1 distributor of the last decade, re-inventing industries through Ecommerce, through a strategic focus on the customer. This report examines some of the tactics used by Amazon across industries.
1Strategic Management Analysis A Case Study of AmazonStuden.docxjesusamckone
1
Strategic Management Analysis: A Case Study of Amazon
Student’s Name
Institution
Strategic Management Analysis: A Case Study of Amazon
Amazon.com’s History and Products
Headquartered in Seattle, Washington, Amazon.com is one of the world’s largest online retailers and pioneer of online retailing. Jeff Bezos, the president and chief executive officer of Amazon.com, started the company in 1994 as an online bookstore before expanding into other products. Today, the company offers a range of goods and services via its websites. The organization’s products comprise of merchandise and contents that it buys from vendors and third party sellers for resale. It also produces and sells different types of electronic devices. Among its product lines are media, apparel, consumer electronics, gourmet food, groceries, baby products, and jewelry. Others include: health and personal care products, kitchenware, watches, garden items, industrial and scientific supplies, sporting products, musical instruments, toys and games, and automotive products.
It operates via three segments-North America, Amazon Web Services, and International. Its Amazon Web Services products consist of analytics, Amazon CloudSearch, Amazon Kinesis, Amazon Athena, Amazon Streaming for Apache Kafka, and Amazon EMR. The segment also deals with other products such as Amazon Redshift, Amazon ElasticSearch, Amazon QuickSight, AWS Lake Formation, AWS Data Pipeline, and AWS Glue. Amazon Web Services solutions consist of machine learning, Internet of Things, containers, storage, analytics and data lakes, serverless computing, and containers. In addition to advertising, the organization also offers Amazon Prime (Reuters, 2020).
Critical Events
Today, Amazon is one of the world’s most valuable public organizations, with Mr. Bezos being the richest man in the world because of various critical events. What started as an online book retailer has grown into a global giant with physical stores, a wide delivery system, membership subscriptions, and its own smart devices. Thanks to its innovations, Streitfeld (2018) indicates that Amazon become the second company in the world, in 2018, to have a value of $1 trillion after Apple Incorporation. It also has the second highest market valuation after Microsoft Incorporation. Although the company can attribute its success to global expansion, the success can be to its diversification into other sectors. The United States Securities and Exchange Commission (2018) indicates that video streaming services and devices, groceries, and cloud services have allowed the organization to compete with other technology heavyweights such as Apple, Google, Netflix, and Facebook. Other key events associated with its success include: launching of online book sales in 1995, Amazon becoming the world’s largest online sales platform in 1999, launching of Prime membership in 2005, and launching of the Kindle in 2007 (Palumbo, 2019).
Leadership
Bezos’ transformational le.
1Amazon Corporate Social ResponsibilityJeannette StaTatianaMajor22
1
Amazon Corporate Social Responsibility
Jeannette Stanley
University of Phoenix
January 14, 2022
Corporate Social Responsibility
Company description
In this case, we'll consider Amazon as our company. Amazon.com Inc. is the globe's premier e-commerce and cloud based company (Chaffey, 2021). The firm provides a wide range of items, including those for the home, cosmetics, gaming, electronics, and health. It sells things directly to clients or via a third-party provider that distributes them to them. Currently the single greatest e-retailer in the US as per Statista, having gross earnings of close to 387 billion USD in 2020. The mission statement of Amazon is to provide ease and a good pricing selection to its consumers both physically and virtually. Its objective is to use internet technologies to connect the world's biggest markets, and the approach has proven to be successful so far.
Environmental analysis
Competitive forces
Apple, Microsoft, Walmart, Netflix, and Google are Amazon's key rivals. Amazon's E-books, movies, and Amazon Prime are basically cash cows, providing the company with the highest margins above its rivals as per the BCG matrix. Online services on Amazon, Kindle, and VOD are all question marks since, with the digital revolution, they have become outdated. Electricals and other household goods items are Amazon's standouts, not just because of their rapid progression, but because of Amazon's huge market share in these categories.
Economic forces
Taxing and inflationary rates, general and industry-specific GDP expansion, rates of unemployment and alterations in currencies are all economic variables that have a direct impact on Amazon's revenue flow and advancement possibilities.
Political forces
Political safety or volatility in the United States, the effect of domestic market advocacy, and the government's stance toward e-commerce and retailing sectors in particular are political variables that affect Amazon (Sadq et al., 2018). Amazon has an inverse impact in governance in a lot of places due to the extent and magnitude of its corporate activities.
Legal forces
Various rules and regulations apply to Amazon's commercial activities. Antitrust statutes, laws to do with discrimination, laws to do with consumer protection for e-commerce enterprises, and privacy laws are just a few of the legal issues that might influence Amazon.
Technological forces
Amazon's foundation is technology. To serve its clients, Amazon is investing on technology in the form of cloud services (amazon application server).
Social forces
The firm will profit from the rising trend of online buying and greater consumption. The appeal of Amazon amongst youngsters and elderly individuals who do not want to leave their homes is due to its easy accessibility of items and doorstep shipment (Chaffey, 2021). Furthermore, the pace at which employment prospects are dwindling as Amazon relies on tech to substitute workers poses a risk.
Current target ...
This case study report is detail analysis of Amazon.com. The report describes the List of areas that
it has been working, the business models it has adopted and the various strategies that it has
implemented to make it one of the most successful E-commerce platform. This case study reflects
that using the strategies and model adopted by Amazon's can leads any other E-commerce site to get
successful. This case study also shows that how the different models and strategies must be
implemented with respect to the dynamic environment of the E-commerce.
AMAZON.COM’S EUROPEAN DISTRIBUTION STRATEGYHüseyin Tekler
Amazon.com, Inc., known as Amazon, is an e-commerce and cloud computing company based in the United States. Founded on July 5, 1994, by Jeff Bezos in Seattle, United States. It is the world's largest shopping site in terms of both total sales volume and market value. Considering that Amazon sales thousands of kinds of products in many countries, it is clear that there is a need for highly developed SCM. To start with, Amazon’s SCM has a strategic fit with its competitive strategy of being the retailer of choice for its customers. The combination of multi-tier inventory management, superlative transportation, and highly efficient use of IT, and its wide network of warehouses are all geared towards aligning its SCM with its competitive strategy. In this paper, a detailed review of Amazon's SCM will be made.
1Managerial Report for Case Problem Amazon.com lnc.”Execu.docxdrennanmicah
1
Managerial Report for Case Problem “Amazon.com lnc.”
Executive Summary
Today, Amazon is no longer the “online book-selling store” people used to be familiar with, but a very diversified company with an open platform. It not only has a third-party vendor platform that can attract numerous customers but also has achieved a good result in the logistics, film, and television industry. Moreover, Amazon is one of the first group of enterprises to enter the cloud service. Amazon’s leader Jeff Bezos proposed Amazon’s exclusive flywheel business model, which totally demonstrates his business insights and philosophy. Amazon ranks among the world’s top companies through its strengths in customer experience, logistics, cloud services, etc. Also, Amazon has been devoted to the technological area such as artificial intelligence and cloud services. Even faced with intense competition from the leading technology companies like Microsoft, IBM, and Google, Amazon has achieved excellent performance. This report will analyze Amazon’s flywheel model and its core competency, also introduce the competition between Amazon and Microsoft in cloud services and the future development direction of Amazon.
The Business Model of Amazon
Amazon has three core businesses. The first one is Amazon Prime, it is a paid membership system. When customer become a member of Amazon Prime, they can purchase any products on Amazon.com and enjoy free and fast delivery. The second one is the third-party seller platform, Individual merchants can create an online store on Amazon to sell their products. The third one is the AWS (Amazon Web Service). It’s a cloud service and offers a broad set of global cloud-based products including compute, storage or databases and so on. These services help organizations move faster, lower IT costs and scale (Cloud Products, Amazon Official Website). Whether a startup or a large enterprise, they can build their company’s IT system on Amazon’s cloud service system. It’s cheaper and more stable than building your own system.
These three core business looks unprofitable at first, but in fact, they are like a small saw tooth on a huge gear. The Prime and low price product can let the customer keep purchasing on Amazon, while the cloud and logistic service keep the supplier to work with Amazon. More suppliers will attract more customers, vice versa, the more the customers purchase, the more supplier is inseparable with Amazon. These have enabled Amazon to gain more with costs fixed (like logistics and warehouse) and provide customers with a lower price and turns the huge flywheel. Turning the stationary flywheel up must spend a lot of efforts at the beginning. However, in fact, every effort will not be wasted, and the flywheel will turn faster and faster. When a high speed is reached, no more effort is required and the flywheel can maintain its original state of motion.
Amazon’s Core Competency
Amazon’s success relies on robust operations, strict management.
Amazon might be the number 1 distributor of the last decade, re-inventing industries through Ecommerce, through a strategic focus on the customer. This report examines some of the tactics used by Amazon across industries.
1Strategic Management Analysis A Case Study of AmazonStuden.docxjesusamckone
1
Strategic Management Analysis: A Case Study of Amazon
Student’s Name
Institution
Strategic Management Analysis: A Case Study of Amazon
Amazon.com’s History and Products
Headquartered in Seattle, Washington, Amazon.com is one of the world’s largest online retailers and pioneer of online retailing. Jeff Bezos, the president and chief executive officer of Amazon.com, started the company in 1994 as an online bookstore before expanding into other products. Today, the company offers a range of goods and services via its websites. The organization’s products comprise of merchandise and contents that it buys from vendors and third party sellers for resale. It also produces and sells different types of electronic devices. Among its product lines are media, apparel, consumer electronics, gourmet food, groceries, baby products, and jewelry. Others include: health and personal care products, kitchenware, watches, garden items, industrial and scientific supplies, sporting products, musical instruments, toys and games, and automotive products.
It operates via three segments-North America, Amazon Web Services, and International. Its Amazon Web Services products consist of analytics, Amazon CloudSearch, Amazon Kinesis, Amazon Athena, Amazon Streaming for Apache Kafka, and Amazon EMR. The segment also deals with other products such as Amazon Redshift, Amazon ElasticSearch, Amazon QuickSight, AWS Lake Formation, AWS Data Pipeline, and AWS Glue. Amazon Web Services solutions consist of machine learning, Internet of Things, containers, storage, analytics and data lakes, serverless computing, and containers. In addition to advertising, the organization also offers Amazon Prime (Reuters, 2020).
Critical Events
Today, Amazon is one of the world’s most valuable public organizations, with Mr. Bezos being the richest man in the world because of various critical events. What started as an online book retailer has grown into a global giant with physical stores, a wide delivery system, membership subscriptions, and its own smart devices. Thanks to its innovations, Streitfeld (2018) indicates that Amazon become the second company in the world, in 2018, to have a value of $1 trillion after Apple Incorporation. It also has the second highest market valuation after Microsoft Incorporation. Although the company can attribute its success to global expansion, the success can be to its diversification into other sectors. The United States Securities and Exchange Commission (2018) indicates that video streaming services and devices, groceries, and cloud services have allowed the organization to compete with other technology heavyweights such as Apple, Google, Netflix, and Facebook. Other key events associated with its success include: launching of online book sales in 1995, Amazon becoming the world’s largest online sales platform in 1999, launching of Prime membership in 2005, and launching of the Kindle in 2007 (Palumbo, 2019).
Leadership
Bezos’ transformational le.
1Amazon Corporate Social ResponsibilityJeannette StaTatianaMajor22
1
Amazon Corporate Social Responsibility
Jeannette Stanley
University of Phoenix
January 14, 2022
Corporate Social Responsibility
Company description
In this case, we'll consider Amazon as our company. Amazon.com Inc. is the globe's premier e-commerce and cloud based company (Chaffey, 2021). The firm provides a wide range of items, including those for the home, cosmetics, gaming, electronics, and health. It sells things directly to clients or via a third-party provider that distributes them to them. Currently the single greatest e-retailer in the US as per Statista, having gross earnings of close to 387 billion USD in 2020. The mission statement of Amazon is to provide ease and a good pricing selection to its consumers both physically and virtually. Its objective is to use internet technologies to connect the world's biggest markets, and the approach has proven to be successful so far.
Environmental analysis
Competitive forces
Apple, Microsoft, Walmart, Netflix, and Google are Amazon's key rivals. Amazon's E-books, movies, and Amazon Prime are basically cash cows, providing the company with the highest margins above its rivals as per the BCG matrix. Online services on Amazon, Kindle, and VOD are all question marks since, with the digital revolution, they have become outdated. Electricals and other household goods items are Amazon's standouts, not just because of their rapid progression, but because of Amazon's huge market share in these categories.
Economic forces
Taxing and inflationary rates, general and industry-specific GDP expansion, rates of unemployment and alterations in currencies are all economic variables that have a direct impact on Amazon's revenue flow and advancement possibilities.
Political forces
Political safety or volatility in the United States, the effect of domestic market advocacy, and the government's stance toward e-commerce and retailing sectors in particular are political variables that affect Amazon (Sadq et al., 2018). Amazon has an inverse impact in governance in a lot of places due to the extent and magnitude of its corporate activities.
Legal forces
Various rules and regulations apply to Amazon's commercial activities. Antitrust statutes, laws to do with discrimination, laws to do with consumer protection for e-commerce enterprises, and privacy laws are just a few of the legal issues that might influence Amazon.
Technological forces
Amazon's foundation is technology. To serve its clients, Amazon is investing on technology in the form of cloud services (amazon application server).
Social forces
The firm will profit from the rising trend of online buying and greater consumption. The appeal of Amazon amongst youngsters and elderly individuals who do not want to leave their homes is due to its easy accessibility of items and doorstep shipment (Chaffey, 2021). Furthermore, the pace at which employment prospects are dwindling as Amazon relies on tech to substitute workers poses a risk.
Current target ...
This case study report is detail analysis of Amazon.com. The report describes the List of areas that
it has been working, the business models it has adopted and the various strategies that it has
implemented to make it one of the most successful E-commerce platform. This case study reflects
that using the strategies and model adopted by Amazon's can leads any other E-commerce site to get
successful. This case study also shows that how the different models and strategies must be
implemented with respect to the dynamic environment of the E-commerce.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
2. consistent message had been to “build culture, take risk, and focus on the long term.”8
Further, Amazon was guided by four principles: an obsession with the customer rather than
competitors; a passion for invention; a commitment to operational excellence; and long-
term thinking.9 By 2016, Amazon was a major e-commerce company that also operated in
multiple other industries such as books, films, and web services with various subsidiaries.
Its website was well known as the most popular destination for product searches,
surpassing all other search engines and retailers. As a result, the This document is
authorized for use only by sarah gaudar in Marketing Management Coursepack taught by
Violet Christopher, Other (University not listed) from Aug 2018 to Jan 2019. For the
exclusive use of s. gaudar, 2018. Page 2 9B18M026 majority of U.S. consumers perceived
Amazon as the dominant player in e-commerce (see Exhibit 1). Nine out of 10 consumers
checked the Amazon website even if they found a product they liked while shopping on
another retailer’s site.10 In 2012, Bezos had spoken about the possibility of Amazon’s
expansion into B&M stores, saying, “We would love to, but only if we can have a truly
differentiated idea. . . . What would we do that would be different? How would it be better?
We don’t want to do things because we can do them. We . . . don’t want to be redundant.”11
Three years later, Amazon returned to its roots by opening its first bookstore in Seattle,
Washington.12 It also laid the foundation for an innovative new concept of how to shop
through its first Amazon Go location. As of February 2017, the company had over 341,000
employees13 and reported revenues of over $135 billion (see Exhibit 2).14 Amazon’s future
plans included further B&M expansions of Amazon Books, Amazon Go, and AmazonFresh. In
addition, representatives from Amazon and from supermarket chain Whole Foods met in
Seattle on April 30, 2017. Although the companies signed a non-disclosure agreement
(because other companies were also interested in acquiring Whole Foods), the subject of
the meeting was clearly a potential acquisition.15 Growing Segment: Amazon Web Services
Amazon operated under three business segments created in 2006: North America,
International, and Amazon Web Services (AWS), a cloud computing platform and subsidiary
of Amazon (see Exhibit 3). AWS resulted from Bezos listening to customers looking for
solutions to problems with expensive applications and open source products. In this way,
AWS was an outcome of the company’s customer-centric principle.16 In 2016, AWS
produced $12.2 billion in revenue.17 With $926 million in operating profits, comprising
31.3 per cent of all AWS net sales (in comparison with Amazon’s operating margin of 5 per
cent), AWS was Amazon’s main profit driver in the fourth quarter of 2016.18 AWS was still
growing, and offered various services including virtual servers, storage, database,
migration, networking, security, messaging services, artificial intelligence, development
tools and application services.19 Bezos confirmed, “AWS is a $5 billion business and still
growing fast.” Similarly, Dan Kurnos, an analyst with The Benchmark Company, noted that
AWS was “surprisingly more profitable than forecast.”20 A key benefit of AWS was that
costs were largely variable, as they were scaled to a customer’s business, thereby helping
that customer avoid large capital expenses. Moreover, cloud computing reduced the
processing time from weeks or months to minutes through autonomic computing, which
reduced labour costs and the possibility of human errors. Hence, AWS was a reliable, low-
cost, agile, open, flexible, and secure platform that provided services to businesses in 190
3. countries.21 Enhancing the Shopping Experience: Amazon Prime and Prime Now Amazon
Prime consisted of two features, Prime and Prime Now. Prime was a paid membership
program that gave customers advantages such as free, cheaper, or faster shipping; savings
on products and services; access to Amazon’s entertainment subsidiaries; and other
bonuses (e.g., Amazon Elements and Membership Sharing).22 Prime Now members could
receive free two-hour delivery of thousands of Amazon items. Another area of Prime Now
was its restaurant delivery service, Amazon Restaurants (which offered food delivery
within one hour to Prime members if their order met a minimum purchase amount). To
offer these services, Amazon partnered with local stores, restaurants, and couriers to
provide This document is authorized for use only by sarah gaudar in Marketing
Management Coursepack taught by Violet Christopher, Other (University not listed) from
Aug 2018 to Jan 2019. For the exclusive use of s. gaudar, 2018. Page 3 9B18M026 more than
25,000 items across 25 categories, from basic essentials to electronics and more. The
deliveries were available seven days a week from early morning to late evening.23 Bezos
stated that Amazon Prime was the “best bargain in the history of shopping” and that it was
part of Amazon’s long-term plan to strengthen the company’s hold on customers.24 In
exchange for loyalty, Amazon was willing to sacrifice profits from shipping and services.
Prime was one of Amazon’s initiatives to help change customers’ expectations about
retail.25 Prime members used Amazon as their primary source for researching products,
increasing overall usage of Amazon from 44 per cent in 2015 to 55 per cent in 2016, while
other search engines decreased from 34 per cent to 28 per cent over the same period (see
Exhibit 1).26 Amazon catered to the two most important factors for customers shopping
online: low prices and free shipping. Although Prime members were more likely to shop
online, they still shopped as often as the average U.S. consumer.27 Prime members were
important for the company’s revenue stream since each member spent, on average, $1,200
per year, compared with an average of $500 per year for non-members.28 ONLINE
RETAILING INDUSTRY Market Growth With the exception of 2008 and 2009 (i.e., during the
global recession), the e-commerce industry had experienced steady growth since the dot-
com boom of the late 1990s; by 2017, it had an estimated value of $432.4 billion, growing
13.4 per cent between 2012 and 2017.29 E-commerce sales were expected to reach $658.2
billion by 2023 (see Exhibit 4).30 Consumers shopping online had many advantages, such
as access to a greater variety of products, the ability to find products more quickly, and
more convenience in receiving them. The increased usage of mobile devices complemented
the e-commerce trend, as retailers were increasingly tailoring their digital content for
mobile viewers. In addition, there was a race to bring the grocery retail sector online in the
United States. The largest obstacle to this objective was providing fresh products and foods
because customers preferred to be able to inspect the quality of such items before buying
them. Another challenge was that customers did not want to pay high fees for deliveries, nor
did they want to wait to receive their purchases. To address these needs, large traditional
grocery stores such as Wal-Mart Stores, Inc. (Walmart) and Kroger offered “clickand-
collect” services, which allowed customers to place their grocery orders online and collect
them at their convenience.31 These grocery retailers had increased the options they offered
for online food shopping, mainly in anticipation of Amazon’s potential expansion into this
4. category. Over the past several years, consumers’ grocery shopping behaviours had
changed dramatically. Euromonitor International reported that 25 per cent of U.S.
consumers shopped for groceries online at least once in 2013. In 2016, the percentage
increased to 38 per cent.32 Competition Amazon led the e-commerce industry and
competed with large retailers such as Walmart and Target Corporation (Target) using a
fast-growing, dynamic channel that was essential to compete with storebased retailing.33 In
2016, Amazon’s revenue was $136 billion, approximately 27.9 per cent of Walmart’s $486
billion. This document is authorized for use only by sarah gaudar in Marketing Management
Coursepack taught by Violet Christopher, Other (University not listed) from Aug 2018 to Jan
2019. For the exclusive use of s. gaudar, 2018. Page 4 9B18M026 In terms of sales volume,
Amazon had been unable to compete with Walmart; the main reason was that, in the United
States, nine out of 10 dollars were spent in offline retail stores. Thus, Amazon realized it
was imperative that the company enter the offline retail segment. Accordingly, Amazon
launched Amazon Go and its other B&M stores as a first step in this direction.34 As the
competition between Amazon and Walmart increased, Walmart stores stopped selling
Kindles, the e-readers designed and marketed by Amazon. Walmart also began offering
same-day delivery during holiday seasons by shipping directly from its stores.35 Yet
Walmart was not the only competitor that Amazon faced. In 2012, eBay Inc. launched eBay
Now, a courier service offering one-hour delivery for only $5. Further, in 2013, Amazon’s
market share in product search was 30 per cent in comparison with Google’s 13 per cent,
which resulted in the latter launching Google Shopping Express.36 STRATEGIC CHANGES:
OFFLINE MARKET Amazon intended to deliver “the omnichannel experience”—a
multichannel approach that offered customers an integrated shopping experience—by
opening multiple B&M locations. The omnichannel approach was becoming increasingly
popular in the retail industry. Large retailers such as Amazon and Walmart began blurring
the lines between online and offline as they catered to their customers’ needs. Although the
majority of retail sales occurred in the B&M market, e-commerce’s influence was growing,
as demonstrated by research that found 45 per cent of U.S. customers preferred to make
their holiday purchases online (compared with 52 per cent who preferred to make their
purchases offline).37 According to the Retail Systems Research, omnichannel platforms
were also growing, and 59 per cent of U.S. retailers believed that omnichannel customers
were more profitable than non-omnichannel customers.38 The B&M industry, where 90 per
cent of all U.S. retail sales were made, was valued at $4 trillion.39 Amazon tried to take
advantage of this opportunity. By experimenting with physical stores—such as Amazon
Books, AmazonFresh, and Amazon Go—Amazon hoped to replicate its e-commerce success
in the B&M market. Amazon Books Amazon successfully launched its first B&M store,
Amazon Books, in a retail industry where most retailers were moving toward e-commerce.
Its first location was established in Seattle on November 2, 2015, and was followed by more
stores in Chicago (Illinois), Portland (Oregon), and San Diego (California).40 Amazon Books
took features of the traditional bookstore concept, such as a relaxing environment, to attract
customers and encourage browsing. Although these aspects did not differentiate Amazon
Books from other bookstores, they were key to its success in adapting to the B&M industry.
Unlike in traditional bookstores, books were displayed with the cover (rather than the
5. spine) of the book facing customers, stores were limited in terms of the number of books in
stock, and occasionally, reviews from the Amazon website were provided.41 Amazon had
taken advantage of the concept of “showrooming” (i.e., examining products in a physical
store and then buying it online for a better price) and incorporated the best parts of online
and offline purchasing by ensuring the lowest possible prices while giving customers the
instant gratification of making an offline/physical purchase. Customers paid the same prices
as listed on the Amazon website, and Prime members were still able to receive discounted
prices in the stores.42 Customers could use in- This document is authorized for use only by
sarah gaudar in Marketing Management Coursepack taught by Violet Christopher, Other
(University not listed) from Aug 2018 to Jan 2019. For the exclusive use of s. gaudar, 2018.
Page 5 9B18M026 store scanners or use their own Amazon application to confirm the price,
which helped to reassure them and saved time for employees, as they did not have to
change the price tags on inventory if prices changed. The B&M stores also served as
locations for customers to purchase products from the Amazon line, such as the Echo
devices, Fire tablets, and Kindle e-readers.43 Amazon sought to ensure low friction between
the online and offline shopping experience by charging instore purchases to the credit card
linked to a customer’s Amazon website account. Customers automatically received an
emailed receipt and each in-store purchase was recorded in the customer’s Amazon order
history. This system created an omnichannel shopping experience that allowed Amazon to
blur the virtual and physical retail industries.44 AmazonFresh Originating in Seattle,
AmazonFresh was an unlimited grocery delivery service available exclusively to all Prime
members at a cost of $14.99 per month.45 Customers could shop online or by mobile
application and schedule a delivery time. AmazonFresh boasted a selection of over 100,000
grocery items, and the shopping process was simple, easy, and potentially threatening to
competitors.46 Although this process was logistically complex, AmazonFresh was
successful in providing fast delivery; however, delivering fresh food could be a challenge, as
many customers preferred to choose fresh food and vegetables in person to ensure
quality.47 AmazonFresh was in at the beta testing phase for its drive-up grocery store
service, known as AmazonFresh Pickup, and had opened two such locations to the public on
May 25, 2017.48 Both beta testing locations were located in Seattle and allowed Prime
members to place their grocery orders online and pick them up at one of the drive-up
locations. Although an AmazonFresh membership was not necessary, having one sped up
the process to the point that members could collect their groceries just 15 minutes after
ordering. In comparison, Prime members had to wait at least two hours before a pickup
window was available. Although drive-up food collection was far from a revolutionary
concept, Amazon hoped to use AmazonFresh Pickup to challenge its competitors in the
grocery industry.49 Amazon Go Amazon Go was a store concept with a unique approach to
the grocery format. Its main draw was the lack of checkout lines and cashiers, with the
tagline, “No Lines! No Checkout! Just Grab and Go!”50 Amazon Go sold assorted food and
snack options made fresh daily, and carried a variety of products, including inhouse and
well-known brands. The store underwent beta testing in Seattle in late 2016 and early
2017, and used motion sensors to detect what shoppers purchased as they proceeded
through the store; purchases were then charged to customers’ Amazon accounts as they
6. exited the store. If the technology was unable to identify purchase items, Amazon Go’s deep
learning technology was implemented to process the customer’s past purchase history to
help identify the items in question.51 The concept of Amazon Go first appeared in the media
December 2016.52 At that time, Amazon wanted to push the boundaries of technology and
use these innovations to improve customers’ shopping experience in terms of convenience
and wait times. The advanced shopping technologies implemented were computer vision,
sensor fusion, and deep learning technology.53 Amazon had developed these technologies
through its subsidiary, AWS, and had already used the technologies in various other aspects
of its business.54 This document is authorized for use only by sarah gaudar in Marketing
Management Coursepack taught by Violet Christopher, Other (University not listed) from
Aug 2018 to Jan 2019. For the exclusive use of s. gaudar, 2018. Page 6 9B18M026 Amazon
Go represented a new type of shopping, in which the advantages of digital technology were
combined with the offline shopping experience. Unlike most retailers, Amazon excelled in
offering convenience and responsiveness to its customers. The company had 244 million
active customers (and 54 million Prime customers), all of whom had accounts with their
payment information on file.55 Amazon Go connected these customers with products
through the use of new technology. The store used cameras and state-of-the-art software to
identify customers through facial recognition as they stood in front of products, and weight
sensors detected when products were removed from shelves and purchased. To be effective
and efficient for customers, Amazon Go required a high degree of accuracy. Because it was
data-driven, the company also had the ability to apply the data to personalize each store
with a product mix for specific locations. Amazon could use its $10 billion cloud computing
service, AWS, to facilitate Amazon Go. Moreover, Amazon’s warehouses were located within
20 miles (32 kilometres) of 44 per cent of the U.S. population, making it logistically possible
for the company to stock its grocery locations and adjust the product mixes.56 FUTURE
EXPANSION PLANS Amazon’s experiments with B&M stores such as Amazon Go went
beyond simply entering the grocery industry. Although some of these stores were only in
the beta testing phase, the company’s ambition was to be the leader in the retail industry as
a whole. Online retailing accounted for $360 billion, which represented just 9 per cent of
sales made in the U.S. offline retail industry.57 Further, Amazon was better positioned than
its competitors to blend its offline and online retailing channels, and the brand appealed to
customers.58 Amazon Go was also planning to launch stores in the United Kingdom after it
completed beta testing in Seattle. The company filed trademark applications with the
Intellectual Property Office of the United Kingdom in regards to Amazon Go-related
trademarks, such as “No Lines. No Checkout. (No, Seriously.),” which were approved.
Amazon Go presented a concern for U.K. supermarkets that were already facing competition
from AmazonFresh.59 Amazon’s evolution into same-day delivery services could give the
company a competitive advantage due to its active transportation fleet. In addition to
Amazon’s long-term relationships with United Parcel Service and FedEx Corporation, the
company used Fresh trucks to deliver products faster than other retailers, which relied on
third parties. Amazon was also able to offer the infrastructure it had built as a service to
third parties, thereby making an additional profit. Bezos had always focused on what the
company could provide for its customers, and his goals had remained consistent over the
7. past two decades: “Be cheap. Be fast. That’s how you win.”60 Amazon had three formats of
grocery stores planned: Amazon Go, AmazonFresh, and a multi-format store where
customers had the option of curbside pickup. Based on the results of its test locations for all
three formats, the company planned on expanding to more than 2,000 other grocery
stores.61 Amazon and Whole Foods Market In April 2017, a rumour arose that Amazon was
exploring the acquisition of Whole Foods.62 On May 4, 2017, executives from Amazon and
Whole Foods met in Austin, Texas, to sign further non-disclosure agreements and conduct
additional due diligence.63 Four private equity firms, including Jana Partners (an activist
investor that owned a 9 per cent stake in Whole Foods), also pushed the Amazon’s
acquisition of Whole Foods.64 This document is authorized for use only by sarah gaudar in
Marketing Management Coursepack taught by Violet Christopher, Other (University not
listed) from Aug 2018 to Jan 2019. For the exclusive use of s. gaudar, 2018. Page 7
9B18M026 Amazon’s prospective acquisition of Whole Foods might mean that customers
could order Whole Foods items through AmazonFresh. Furthermore, by offering Whole
Food items, the company could provide a better variety of products in its Amazon Go stores.
Analysts saw this potential acquisition as a response to Walmart’s acquisition of online
retailer Jet.com in the previous year. In August 2016, the corporation finalized a $3.3 billion
deal to buy Jet.com, which significantly augmented Walmart’s e-commerce operations.65
Walmart’s moves to strengthen its e-commerce and Amazon’s moves to strengthen its
offline channels (with B&M stores) would dramatically change the supermarket and retail
industries. For instance, other retailers were expected to respond to these giants’ moves by
cutting their prices, offering discounted items, and sending out a barrage of mailers and
coupons.66 What Next? Clearly, evolving into offline retail was crucial to Amazon’s next
strategic phase. Could Amazon extend its success in the online marketplace in the offline
retail industry? What strategic actions should Amazon employ to successfully expand into
the offline retail industry? What should Bezos do to lead the company in this new business
environment? This document is authorized for use only by sarah gaudar in Marketing
Management Coursepack taught by Violet Christopher, Other (University not listed) from
Aug 2018 to Jan 2019. For the exclusive use of s. gaudar, 2018. Page 8 9B18M026 EXHIBIT
1: CONSUMERS’ SEARCH PATTERNS FOR RETAIL SHOPPING Where Consumers Begin Their
Product Search Sep-15 60% 50% Sep-16 55% 44% 40% 34% 28% 30% 21% 20% 16%
10% 0% Amazon Search Engine Retailers Where Consumers Begin Their Product Searches
on Mobile Devices Start on Amazon mobile site or app 50% Start on mobile search engine
Start on retailer mobile site or app 34% 16% Source: BloomReach, “State of Amazon 2016,”
accessed August 26, 2017, http://go.bloomreach.com/rs/243-XLW551/images/state-of-
amazon-2016-report.pdf. This document is authorized for use only by sarah gaudar in
Marketing Management Coursepack taught by Violet Christopher, Other (University not
listed) from Aug 2018 to Jan 2019. For the exclusive use of s. gaudar, 2018. Page 9
9B18M026 EXHIBIT 2: AMAZON FINANCIAL DATA, 2012–2016 2016 2015 2014 2013 2012
Per Share Data (in US$) Cash Flow 20.36 13.09 8.54 6.62 4.68 4.99 1.27 −0.52 0.59 −0.09
30.71 18.82 14.32 14.04 12.42 135,987 107,006 88,988 74,452 61,093 Gross Profit 54,122
40,255 29,836 22,771 16,985 Total Operating Expense 49,936 38,022 29,658 22,026 16,309
Operating Income 11,668 7,879 4,365 3,547 2,835 Research and Development Expense
8. 16,085 12,540 9,275 6,565 4,564 484 459 210 141 92 Income before Taxes 3,796 1,546 −74
435 380 Net Income 2,371 596 −241 274 −39 12,302 8,514 4,924 3,998 2,539 Cash 25,981
19,808 17,416 12,447 11,448 Current Assets 45,781 36,474 31,327 24,625 21,296 Fixed
Assets 37,621 29,042 23,178 15,534 11,259 Total Assets 83,402 65,444 54,505 40,159
32,555 Current Liabilities 43,816 33,899 28,089 22,908 19,002 Non-Current Liabilities
20,301 17,476 15,675 7,433 5,361 Total Shareholder Funds and Liabilities 83,402 64,747
54,505 40,159 32,555 Long-Term Debt 7,694 8,235 8,265 3,191 3,084 Total Stockholders’
Equity 2,223 1,858 1,334 745 643 Current Ratio 1.05 1.05 1.12 1.07 1.12 Net Asset
Turnover 3.44 3.47 3.37 4.33 4.51 Gross Margin (%) 39.8 37.62 33.53 30.59 27.8 Return on
Assets (%) 2.84 0.92 −0.44 0.68 −0.12 Return on Equity (%) 12.30 4.45 −2.24 2.81 −0.48
Solvency Ratio (Asset Ratio) (%) 23.12 20.67 19.71 24.27 25.16 2.86 1.47 −0.13 0.68 0.89
Earnings Book Value Income Statement Summary (in US$ Millions) Revenue Interest
Expense EBITDA Balance Sheet Summary (in US$ Millions) Financials and Key Ratio
Analysis Profit Margin Note: EBITDA = earnings before interest, taxes, depreciation, and
amortization Source: Amazon, 2016 Annual Report, 17, 36–40, April 6, 2016, accessed May
1, 2016, http://phx.corporateir.net/phoenix.zhtml?c=97664&p=irol-reportsannual. This
document is authorized for use only by sarah gaudar in Marketing Management Coursepack
taught by Violet Christopher, Other (University not listed) from Aug 2018 to Jan 2019. For
the exclusive use of s. gaudar, 2018. Page 10 9B18M026 EXHIBIT 3: AMAZON FINANCIAL
DATA BY BUSINESS SEGMENT, 2014–2016 2016 2015 2014 Net Sales (in US$ Millions)
North America 79,785 63,708 50,834 International 43,983 35,418 33,510 Amazon Web
Services (AWS) 12,219 7,880 4,644 135,987 107,006 88,988 Total Consolidated Year-Over-
Year Sales Percentage Growth (%), Including the Effect of Foreign Exchange Rates (%)
North America 25 25 23 International 24 6 12 AWS 55 70 49 Total Consolidated 27 20 20
Year-Over-Year Sales Percentage Growth, Excluding the Effect of Foreign Exchange Rates
(%) North America 25 26 23 International 26 21 14 AWS 55 70 49 Total Consolidated 28 26
20 North America 59 60 57 International 32 33 38 9 7 5 100 100 100 2,361 1,425 360
−1,238 −699 −640 AWS 3,108 1,507 458 Total Consolidated 4,186 2,233 178 Net Sales Mix
AWS Total Consolidated Operating Income (Loss in US$ Millions) North America
International Note: Financial years end December 31 Source: Amazon Inc., 2016 Annual
Report, 23, April 6, 2016, accessed May 1, 2016,
http://phx.corporateir.net/phoenix.zhtml?c=97664&p=irol-reportsannual. This document
is authorized for use only by sarah gaudar in Marketing Management Coursepack taught by
Violet Christopher, Other (University not listed) from Aug 2018 to Jan 2019. For the
exclusive use of s. gaudar, 2018. Page 11 9B18M026 EXHIBIT 4: ONLINE RETAIL SALES IN
THE UNITED STATES, 1998–2023 (IN US$ BILLIONS) 700 600 500 400 300 200 100 0 1998
2003 2008 2013 2018 2023 Note: Data up to 2016 are derived from the U.S. Census Bureau.
Forecasts are based on Statista and the digital commerce research firm eMarketer. Source:
Business Environment Profiles (US), “E-Commerce Sales,” IBISWorld, May 12, 2017,
accessed May 28, 2017,
http://clients1.ibisworld.com/reports/us/bed/default.aspx?entid=88088. This document is
authorized for use only by sarah gaudar in Marketing Management Coursepack taught by
Violet Christopher, Other (University not listed) from Aug 2018 to Jan 2019. For the
9. exclusive use of s. gaudar, 2018. Page 12 9B18M026 ENDNOTES 1 This case has been
written on the basis of published sources only. Consequently, the interpretation and
perspectives presented in this case are not necessarily those of Amazon.com, Inc. or any of
its employees. 2 All currency amounts are in US$ unless otherwise specified. 3 Eugene Kim,
“Amazon Sinks on Revenue Miss,” Business Insider, February 2” 2017, accessed May 5,
2017, www.businessinsider.com/amazon-earnings-q4-2016-2017-2. 4 Anita Balakrishnan
and Ari Levy, “Amazon Sinks as Revenue Misses, Guidance Disappoints,” CNBC.com,
February 2, 2017, accessed May 5, 2017, www.cnbc.com/2017/02/02/amazon-earnings-
fourth-quarter-q4-2016.html. 5 Spencer Soper and Craig Giammona, “Amazon Said to Mull
Whole Foods Bid before Jana Stepped In,” Bloomberg Technology, April 12, 2017, accessed
August 28, 2017, https://www.bloomberg.com/news/articles/2017-04-11/amazon-saidto-
mull-bid-for-whole-foods-before-jana-stepped-in. 6 Brent Franson and My Say, “Amazon Go
Is the Future (Plus 4 Reasons the E-Commerce Giant Might Just Win Retail),” Forbes,
February 3, 2017, accessed May 21, 2017,
https://www.forbes.com/sites/groupthink/2017/02/03/amazon-go-is-thefuture-plus-4-
reasons-why-amazon-might-just-win-retail/#50e2de4819dd. 7 Startups.co, “Amazon
Startup Story,” Fundable, October 20, 2016, accessed May 13, 2017,
https://www.fundable.com/learn/startup-stories/amazon. 8 Tim Mullaney, “5 Key
Business Lessons from Amazon’s Jeff Bezos,” CNBC.com, January 12, 2017, accessed May 17,
2017, www.cnbc.com/2016/05/13/5-key-business-lessons-from-amazons-jeff-bezos.html.
9 Amazon.com Inc., “Form 10-K,” EDGAR Online, accessed September 21, 2017. 10
BloomReach, “State of Amazon 2016,” accessed August 26, 2017,
http://go.bloomreach.com/rs/243-XLW551/images/state-of-amazon-2016-report.pdf. 11
Kim Bhasin, “BEZOS: Amazon Would Love to Have Physical Stores, but Only under One
Condition,” Business Insider, November 27, 2012, accessed May 7, 2017,
www.businessinsider.com/amazon-jeff-bezos-stores-2012-11. 12 Frank Catalano, “Amazon
Books: 4 Months Later, the Retail Giant’s Bricks-and-Mortar Experiment Feels Like a
Winner,” GeekWire, March 13, 2016, accessed May 7, 2017,
https://www.geekwire.com/2016/amazon-books/. 13 Todd Bishop, “Amazon Soars to
More Than 341K Employees—Adding More Than 110K People in a Single Year,” GeekWire,
February 2, 2017, accessed May 7, 2017, https://www.geekwire.com/2017/amazon-soars-
340k-employeesadding-110k-people-single-year/. 14 Amazon, 2016 Annual Report, 4, 17,
April 6, 2016, accessed May 1, 2016,
http://phx.corporateir.net/phoenix.zhtml?c=97664&p=irol-reportsannual. 15 Katie Roof,
“Amazon Wasn’t the Only Company That Tried to Buy Whole Foods,” Tech Crunch, July 7,
2017, accessed January 3, 2018, https://techcrunch.com/2017/07/07/amazon-wasnt-the-
only-company-that-tried-to-buy-whole-foods/. 16 Mullaney, op. cit. 17 Jeremy C. Owens,
“Amazon Is Worth So Much Because Its Cloud Business Is Tech’s True Unicorn,” Market
Watch, April 29, 2017, accessed May 5, 2017, www.marketwatch.com/story/amazon-is-
worth-so-much-because-aws-is-techs-trueunicorn-2017-04-27. 18 Balakrishnan and Levy,
op. cit. 19 Margaret Rouse, “Amazon Web Services (AWS),” TechTarget, May 12 2013,
accessed May 28, 2017, http://whatis.techtarget.com/definition/Amazon-Web-Services-
AWS. 20 Leo Kelion, “Amazon Web Services ‘Growing Fast,’” BBC News, April 24, 2015,
10. accessed September 20, 2017, www.bbc.com/news/business-32442268. 21 Amazon.com,
“About AWS,” Amazon Web Services, 2017, accessed May 28, 2017,
https://aws.amazon.com/about-aws/. 22 Marshall Honorof, “What Is Amazon Prime?,”
tom’s guide, December 15, 2017, accessed January 11, 2018,
www.tomsguide.com/us/what-is-amazon-prime,news-18041.html. 23 Drew Hansen,
“Amazon Go Doesn’t Have to Be the End of the American Dream,” Forbes, December 19,
2016, accessed May 13, 2017,
https://www.forbes.com/sites/drewhansen/2016/12/19/amazon-go-end-american-
dream/#5d7d3992b3e8. 24 Elizabeth Weise, “Amazon Prime Is Big, but How Big?,” USA
Today, February 3, 2015, accessed September 5, 2017,
https://www.usatoday.com/story/tech/2015/02/03/amazon-prime-10-years-old-
anniversary/22755509/. 25 J. J. McCorvey, “AmazonFresh Is Jeff Bezos’ Last Mile Quest for
Total Retail Domination,” Fast Company, August 5, 2013, accessed May 21, 2017,
https://www.fastcompany.com/3014817/amazon-jeff-bezos. 26 BloomReach, “State of
Amazon 2016,” accessed August 26, 2017, http://go.bloomreach.com/rs/243-
XLW551/images/state-of-amazon-2016-report.pdf. 27 “Deep Dive: US Consumer Survey—
Amazon Prime Members Love Shopping Offline Too,” Fung Global Retail & Technology, May
3, 2017, accessed May 21, 2017, https://www.fungglobalretailtech.com/research/deep-
dive-us-consumersurvey-amazon-prime-members-love-shopping-offline/. 28 Scott Davis,
“How Amazon’s Brand and Customer Experience Became Synonymous,” Forbes, July 14,
2016, accessed September 25, 2017,
https://www.forbes.com/sites/scottdavis/2016/07/14/how-amazons-brand-and-
customer-experiencebecame-synonymous/#7cd5a61f3cd5. 29 Business Environment
Profiles (US), “E-Commerce Sales,” IBISWorld, May 12, 2017, accessed May 28, 2017,
http://clients1.ibisworld.com/reports/us/bed/default.aspx?entid=88088. 30 Ibid. This
document is authorized for use only by sarah gaudar in Marketing Management Coursepack
taught by Violet Christopher, Other (University not listed) from Aug 2018 to Jan 2019. For
the exclusive use of s. gaudar, 2018. Page 13 9B18M026 31 Heather Haddon and Sarah
Nassauer, “Wal-Mart, Kroger Strive to Counter Amazon’s Grocery Challenge,” Wall Street
Journal, October 12, 2016, accessed September 20, 2017,
https://www.wsj.com/articles/grocers-make-new-push-intoonline-market-1476270231.
32 Michelle Grant, “The Race to Bring Groceries Online in the US,” LinkedIn, May 2, 2017,
accessed June 1, 2017, https://www.linkedin.com/pulse/race-bring-groceries-online-us-
michelle-grant. 33 Amazon.com, “Amazon.com Inc. in Retailing (USA),” Research and
Markets, March 8, 2017, accessed June 1, 2017,
https://www.researchandmarkets.com/reports/2523525/amazon_com_inc_in_retailing_us
a. 34 Franson and Say, op. cit. 35 McCorvey, op. cit. 36 Ibid. 37 Alison McCarthy,
“Omnichannel 2017: Amazon and Walmart Makes Moves,” eMarketer.com, January 9, 2017,
accessed May 30, 2017, https://www.emarketer.com/Article/Omnichannel-2017-Amazon-
Walmart-Make-Moves/1015000. 38 Ibid. 39 Franson and Say, op. cit. 40 Amazon.com,
“Amazon Books,” accessed September 20, 2017,
https://www.amazon.com/b/?_encoding=UTF8&node=13 270229011. 41 Michael Schaub,
“Amazon to Open Bookstores in Washington, D.C., and Austin, Texas,” Los Angeles Times,
11. September 27, 2017, accessed September 28, 2017,
www.latimes.com/books/jacketcopy/la-et-jc-amazon-bookstores-20170927story.html. 42
Ibid. 43 Catalano, op. cit. 44 Ibid. 45 Sarah Perez, “AmazonFresh Drops to $14.99 per Month
for Prime Members,” TechCrunch, October 6, 2016, accessed August May 17, 2017,
https://techcrunch.com/2016/10/06/amazonfresh-drops-to-14-99-per-month-for-prime-
members/. 46 McCorvey, op. cit. 47 Laura Stevens, “Amazon Plans New Brick-and-Mortar
Retail Stores,” Australian Business Review, December 6, 2016, accessed May 21, 2017,
www.theaustralian.com.au/business/amazon-plans-new-brickandmortar-retail-
stores/newsstory/928bc0d76842ac928a94875ad031e450. 48 Chris Welch, “Amazon’s
Drive-Up Grocery Stores Are Now Open to the Public in Seattle,” Verge, May 25, 2017,
accessed May 28, 2017, https://www.theverge.com/2017/5/25/15693800/amazon-fresh-
pickup-grocery-stores-now-open-seattle. 49 Ibid. 50 Tony Monaco, “No Lines! No Checkout!
Just Grab and Go!,” Z103.5.com, December 6, 2016, accessed May 14, 2017,
http://z1035.com/no-lines-no-checkout-just-grab-and-go/. 51 Todd Bishop, “How ‘Amazon
Go’ Works: The Technology behind the Online Retailer’s Groundbreaking New Grocery
Store,” GeekWire, December 5, 2016, accessed May 14, 2017,
https://www.geekwire.com/2016/amazon-go-workstechnology-behind-online-retailers-
groundbreaking-new-grocery-store/. 52 Nick Wingfield, “Amazon Moves to Cut Checkout
Line, Promoting a Grab-and-Go Experience,” New York Times, December 5, 2016, accessed
January 11, 2018, https://www.nytimes.com/2016/12/05/technology/amazon-moves-to-
cutcheckout-line-promoting-a-grab-and-go-experience.html. 53 Amazon.com, “Amazon Go:
Frequently Asked Questions,” accessed May 14, 2017,
https://www.amazon.com/b?node=16008589011. 54 Kevin Kelleher, “How Amazon Plans
to Totally Reinvent Grocery Shopping,” Time, December 5, 2016, accessed June 6, 2017,
http://time.com/4591522/amazon-grocery-stores-amazon-go-jeff-bezos/. 55 Brent
Franson and My Say, “Amazon Go Is the Future (Plus 4 Reasons the E-Commerce Giant
Might Just Win Retail),” Forbes, February 3, 2017, accessed May 21, 2017,
https://www.forbes.com/sites/groupthink/2017/02/03/amazon-go-is-thefuture-plus-4-
reasons-why-amazon-might-just-win-retail/#50e2de4819dd. 56 Franson and My Say, op.
cit. 57 Ibid. 58 Ibid. 59 Aatif Sulleyman, “Amazon Go: Futuristic Supermarkets with No
Checkouts Could Soon Launch in UK,” Independent, May 22, 2017, accessed May 22, 2017,
www.independent.co.uk/life-style/gadgets-and-tech/news/amazon-go-supermarket-
nocheckouts-uk-launch-not-pay-online-a7749541.html. 60 McCorvey, op. cit. 61 Stevens,
op. cit. 62 Soper and Giammona, op. cit. 63 Beth Kowitt, “How the Amazon–Whole Foods
Deal Went Down,” Fortune, April 12, 2017, accessed August 28, 2017,
http://fortune.com/2017/07/07/amazon-whole-foods-deal-timeline/. 64 Soper and
Giammona, op. cit. 65 Chriss W. Street, “Amazon Declares Price War, Slashes Whole Foods
Grocery Prices 40%,” Breitbart.com, August 30, 2017, accessed September 30, 2017,
www.breitbart.com/california/2017/08/30/amazons-whole-foods-declares-40-
groceryprice-war/. 66 Ibid. This document is authorized for use only by sarah gaudar in
Marketing Management Coursepack taught by Violet Christopher, Other (University not
listed) from Aug 2018 to Jan 2019. • you will submit a typed one-page, single spaced
analytical memo of the case. In the memo, you will assume the role of management
12. presenting your recommendation to the Board. Please use the following format for this
assignment: • Case name • Your name and date • Key issue or problem • Recommendations
that address the problem. Number each recommendation, as many as you feel are
appropriate and write a thoughtful paragraph detailing each recommendation. • Write a
second paragraph, immediately following the recommendation, that provides the support
and rationale for your recommendation. • You may write up to 2 pages if you feel warranted
but please do not exceed 2 pages In late 2015, Amazon.com (Links to an external site.)Links
to an external site., Inc. (Amazon) opened its first brick-and-mortar Amazon Books store in
the United States. Amazon had invested heavily in expanding in the United States through
new projects, from establishing Amazon Prime Now to setting up Amazon Books and
Amazon Go locations. By 2017, a rumour suggested that Amazon might acquire Whole
Foods Market Inc., a natural and organic foods supermarket. Could Amazon be as successful
in offline retail as it had been in e-commerce? How could the company differentiate itself in
the brick-and-mortar retail segment? Won-Yong Oh is affiliated with University of Nevada,
Las Vegas.