2. Building e-commerce operations worldwide
3. Developing a cloud computing platform
4. Pioneering e-book readers
Amazon - answer-- went 7 years without turning a profit and lost over $3 billion during that time
(firm's stock price had fallen from a high of $100 a share to below $6)
- ope...
MGMT 300 CHAPTER 7 EXAM
Amazon Postponed Profits and Concentrated on - answer-1. Expanding warehousing capacity
2. Building e-commerce operations worldwide
3. Developing a cloud computing platform
4. Pioneering e-book readers
Amazon - answer-- went 7 years without turning a profit and lost over $3 billion during that time
(firm's stock price had fallen from a high of $100 a share to below $6)
- operates over 400 facilities worldwide dedicated to the warehousing, distribution, and delivery of
products, sometimes guaranteeing delivery within the hour (*always have sold directly to consumers*)
- Bezos refused to concentrate on the quarterly results (profit harvesting) instead followed his best
reckoning on where markets and technology were headed
- Amazon is clearly more than an online store and has even begun to aggressively invest beyond "clicks"
into "bricks.
- Amazon has the best reputation of any US corporation
- *investment in cloud computing* has paid off spectacularly, and it now delivers over half of the firm's
operating income
What Amazon Operates - answer-- two dozen amazon branded stores that include "Amazon Books" and
"Amazon Go (concept stores that are physical retailers with no-checkout convenience
- Amazon pop up kiosks are now commonplace in malls cross country
- Amazon completed a gargantuan $13.7 billion acquisition of Whole Foods—giving them a 42-state
collection of over 430 grocery stores
Amazon's Logistics and Shipping Efforts include - answer-- leased fleet of cargo jets (Prime Air)
- hundreds of tractor trailers, an expanding local delivery infrastructure
- foray into trans-oceanic shipping
- publicized commitment to delivery by unmanned drone
Operating Income - answer-- income you generate through your operations.
- sales through daily business operations minus related expenses.
- *Net income* is overall "profit" but can include things such as income from investments, expenses
related to financing costs or taxes, or one-time income or expenses such as a gain from a sales or a
corporate fine.
Why Study Amazon? - answer-- *amazon* it the world's most valuable retailer and the largest, most
profitable provider of cloud computing services
, - Bezos's firm is worth twice as much as the world's largest physical retailer (Walmart), and is growing
far faster
*amazon* provides a context for introducing several critical management concepts such as:
(1) cash efficiency
(2) logistic advantages
(3) channel conflict
- this company shows how tech-fueled operations can yield better profits than offline payers
Advantages of Online vs Offline Companies are related to - answer-- scale
- data asset
- brand building benefits
Amazon Kindle Business - answer-- this tablet, set-top box, and the voice-powered personal assistant
allow us to look into the importance of mobile, multiscreen, and diverse-interface computing
- is a vehicle for media consumption
- distribution channel for increased sales and advertising
- creator of switching costs
- gathering point for powerful data, and a competitor for platform dominance
Amazon Web Services (AWS) - answer-- allows us to see how the firm is building a powerhouse cloud
provider, generating new competitive assets while engaging in competition where it sells services to
firms that can also be considered rivals.
Amazon's Category Crushing Performance in Online Commerce - answer-- have created a set of
resources (data, scale, network effects, and more) that have a natural end-state of winner-take-all
- give them enormous bargaining power with suppliers and partners,
- made amazon the first stop for shoppers and the first choice for selling partners, allows the firm to
gather an unprecedented amount of data, and has created a distribution footprint that's difficult to
imagine any other firm rivaling
Amazon is now under intense scrutiny from - answer-- antitrust regulators
- workplace advocates
- privacy groups
- lawmakers
- the public
*wondering* if its justifiable that a firm earning $11 billion in profits paid $0 federal taxes over 2 years
(received rebates)
Amazon Logo - answer-- the stylized smile in the Amazon logo doubles as an arrow pointing from A to Z
(as in "we carry everything from A to Z")
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