Business Policy

Amazon.com’s Business Model and Its Evolution

CASE ASSIGNMENTQUESTIONS

Assignment Questions

1. WhatarethechiefelementsofAmazon’soverallcompetitivestrategy?Howwelldothepiecesfittogether? Is the strategyevolving?

2. WhatarethekeyelementsofAmazon’sstrategyine-commerce,cloudcomputingservices,personalmedia players, digital media streaming?Arethose strategiessuccessful?Arethey compatible? Explain.

3. What does a competitive strength assessment reveal about Amazon’se-commerce business, as compared to the leaders in the retail industry? Use the methodology in Table 4.3 to support youranswer.

4. Does it appear that the company’s competitive positions in personal media players and digital streaming are stronger or weaker than its position in e-commerce and cloud-based computing services? What steps should it take to ensure that the digitally streamed media—and mobile platforms to access that media—become a major contributor to the company’s overallperformance?

5. DoesitmakegoodstrategicsenseforAmazontobeacompetitorinthee-commerce,cloud-basedcomputingservices,andpersonalmediadeviceindustries?Whichofitsthreeprincipalproductlines—e-commerce,cloudcomputingservices,orpersonalmediaplayers—doyouthinkismostimportanttoAmazon’sfuturegrowthandprofitability?Why?Shouldanyoftheproductlinesbediscontinued?

6. What is your assessment of Amazon’s financial performance the past three years? (Use the financial ratios in the Appendix of the text as a guide in doing your financialanalysis.)

7. WhatstrategicissuesconfrontAmazonin2015?WhatmarketorinternalcircumstancesshouldmostconcernJeffBezosandthecompany’sseniorleadershipteam?

8. What recommendations would you make to Amazon to address the strategic issues conf