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Case Critique for ISQS 5231 - IT for Managers

Professor: Qing Cao

Team # 4
Dalal Ahmad Sayed Almohri Aliza Levisnky Andy Rupp Avinash Sikenpore

..... ............................................................................................... 4 Appendix A: Financial Graph ................................................................................................................................................................................................ 3 Evaluate participation and ways to improve ................................Team 4 Critique 1 Contents Summarize the case ...................................................................................................................................... 6 Works Cited ................................................................................................... 2 Critique and analyze team 1............................................................................................................... 5 Appendix B: SWOT Analysis .................................. 7 ....................

Its brand ranking by Interbrand changed from 76 in 2001 to 43 in 2009. Its business model expanded from being just an internet marketplace to providing web services to online retailers. It has been showing consistent growth in revenues even though their profit margins haven’t increased at the same rate primarily on account of heavy investing in improving their information technology and offering lower prices to break into new categories of products . build a strong distribution and warehousing network and develop the state of the art IT infrastructure to support. toys etc. The company grew exponentially and went from just selling books to consumer electronics. establish very good relationships with customers and suppliers. The core strength of Amazon. storage solutions and expanded their product line to include almost everything.com was at the brink of bankruptcy in the beginning of 2001.Team 4 Critique 2 Summarize the case Amazon. software. The case guides us to think and analyze the turnaround from a negative net income to a steady growth and improving financial performance which is far superior in online retailing (Appendix A contains the graphs for Net Income. It has expanded into many international markets and made acquisitions in US to strategically leverage its existing infrastructure. . But above all they have a visionary leader Jeff Bezos who has made it all possible in spite of competing in an extremely competitive business. huge affiliate program and loyal customer base of over 50 million. Operating Profits and Total Sales). It was responsible for inventory warehousing. kitchen appliances. integrate and enhance all their operations. distribution and fulfillment of orders. Amazon.com did not make any profits till 2001 in an effort to gain market share.com is their technology.

warehousing.com has been ranked as the 43rd most valuable brand with a value capped at $ 7.com.com is using its Customer Relationship Management. storage solutions and web services to enterprises. small businesses and online retailers.. Amazon. People raised queries regarding where was the value coming from in the initial years of the company when it was not profitable from an accounting or fiscal standpoint. Being an IT company it invests heavily in its website development and team one did not enter into specific details beyond informing that it provides logistics. Then they have to look at cultural differences as well since they might be keener towards buying from a traditional brick and mortar rather than online. Enterprise Resource Planning and supply chain management software in improving its operations and logistics. The course of action suggested for amazon.com leveraged its brand name to form partnerships and strategic alliances with online retailers which played a key role in its growth and resurgence from 2001. CEO and founder of Amazon. Overall team 1 did a good job in presenting the case but some of the areas they ignored which our team felt were an integral part of the analysis was its brand value.8 billion (Interbrand)1. They mentioned increasing the hosting fees as a source of increasing revenue but that would give its competitors like eBay an opportunity to gain amazon’s market share and might even be counterproductive.Team 4 Critique 3 Critique and analyze team 1. inventory management. and our answer it that it was developing a brand which was worth $ 3. We feel that much of the credit for their turnaround goes to Jeff Bezos.com by team 1 was based on today’s situation when they should have done it for 2001. They could have elaborated on how Amazon.1 billion even in 2001. Their discussion on international expansion did not demonstrate an in-depth analysis. But team 1 did not emphasize of focus enough on his leadership role which was critical to the success of the enterprise. 1 Interbrand best global brands . Amazon. They mentioned expanding into India since it has a population of over 1 billion but the fact to consider is how many people have access to internet and even among them what percentage shop online.

com. We could have made a list of A SWOT analysis would have provided a deeper insight into the problems faced by amazon. Evaluate participation and ways to improve We feel that we did well in terms of our understanding of the case and its review.Team 4 Critique 4 We feel another source of improving their revenues could be by cutting down on the transaction or processing fees amazon needs to pay to the banks by creating a service similar to PayPal on eBay and making it mandatory for purchases on amazon. One way to improve our participation would have been by noting down thoughts and comments during the presentation since it facilitates a healthier discussion by not allowing for forgetting anything.com. Each member contributed towards the critique and came up with good ideas and suggestions while arguing the pros and cons for including some. All team members had read the case a few times prior to the presentation which enhanced the understanding and learning experience. Debt to Equity and other liquidity ratios would have enabled in extending the arguments of the case. We feel it was a valuable experience and will help in analyzing business situations similar to this and the role of IT in handling it. . A stronger analysis of the financial statement and considering the key ratios like Return on Equity. We have included a SWOT analysis in Appendix B.

Team 4 Critique 5 Appendix A: Financial Graph .

Weaknesses •Low margins •Lack of international presence in some parts •Increasing operational complexity due to expansion . Barnes & Nobles •Possible rejection of on-line sale in international markets •Competition will increase due to the low barriers of entry Strengths: •Strong brand name •Large product selection •Strong Infrastructure •Manage two segments: B2C and B2B e-commerce.Team 4 Critique 6 Appendix B: SWOT Analysis Opportunities •E-commerce expansion •Growth of internet users •Access to information trough partners and affiliates Threats •Competitors like: eBay.

. (n. 2010. (2008)./AMAZON. University of Main Fort Kent.maine.com/best_global_brands. Amazon. 2010. 11. Retrieved 03 31. from Best global brands : 2009.Team 4 Critique 7 Works Cited Applegate. 04).aspx?year=2009&langid=1000. Retrieved 03 30. D. Harvard Business Review.edu/slides/spring%202006/. Dustin Nadeau.).. M.interbrand. S.com: The Brink of Bankruptcy. L. from perleybrook.umfk.ppt Interbrand. . http://www. (2006.d.