Amazon:

Problem:
 Amazon has increased spending time and money in other companies
expanding distribution capacities, and also adding new product
increased its short time losses.
 Lots of buyers of America was not online.
 Amazon was phases the problem to reach the customer by being online.

Background:
 Revenue $355.8 million from $153.6 million in 1999.
 Price- comparison technology is still unsophisticated.
 Oct 31, 1999 stock traded $70.6% nearly 40%.
 If Walmart starts selling everything it has in the stores online, it
could become the premier online retailer.” Then it will give very
strong competition to amazon.
Evaluation of the cases
 Amazon was customer- centric company.
 They thought that if one customer is happy he will tell
thousand more people.
 They worked on long term not a short term.
Proposed solutions
 Amazon should focuses on short term losses.
 Amazon should increase its distribution capacity it’s hiring more
distributor which will increase its brand value.

Recommendations:
 Amazon should increase its warehouse capacity.
 Delivery will be fast due to which people can be more and more
statisfied.