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Section V. - Mini Essay
Database Resources
Jeffrey Bezos, CEO of Amazon.com, appears to be one of few
dot-com survivors, yet investors remain unconvinced of the company's
future growth. Although reporting first quarter profits in 2002,
Amazon.com has not persuaded skeptics that its business model
works (3).
Bezos was named Time's 1999 Person of the Year during the "peak
of Internet mania" in 1999, but with the combination of
the Internet bust and dot-com bankruptcies as well as the harsh
aftermath of September 11, the future of Amazon.com seems shaky
(4, quote from 3). Since the launch of Amazon.com in 1995, it
has lost close to three billion, but Bezos still insists that
Amazon is in a strong cash position. Amazon has lost four executive
staff members in recent months, but Bezos believes his team
is secure. The company, based in Seattle, reported first-ever
profits from first quarter 2002, with a drastic increase in
sales and a narrowing of losses.
With a big change in the business model, Amazon is now focusing
on selection, convenience and lower prices (4). In June, Amazon
began offering free shipping to orders over $49 U.S. and before
that, started offering 30% discounts to books over $15 US As
for online partnerships, Amazon is currently running operations
with companies such as Target and Borders and may eventually
include Gap and Nordstrom (2).
Bezos claims that what sets Amazon apart is its wide selection
(due to its unlimited Internet shelving space) and its personalized
customer's shopping (3). In 2000/2001, Amazon was rated with
an 84 on customer satisfaction, the highest rate ever given
by the American Customer Satisfaction Index for a service company
(3). With Amazon's service knowledge and technological capabilities,
Bezos expects Amazon.com to continually improve its profits
in the future (1). His consistency and positive outlook may
pay off in the long-run.
NOTES:
(1) Garcia, Beatrice E. (2002, July 28). Jeff Bezos is now
an Internet survivor. Calgary Herald (Online), 1135 words. Available:
LexisNexis Academic (2002, September 12).
(2) Haeberle, Matthew. (2002, August). What's next for Amazon.com?
Rumors suggest e-retailer will pair with Gap, Nordstrom. Chain
Store Age Executive with Shopping Center Age (Online). Available:
Infotrac General Reference Center Gold (NCLIVE) (2002, September
12).
(3) Kafman, Leslie. (2002, May 19). Amazon II: Will This Smile
Last? New York Times (Online), 2076 words. Available: LexisNexis
Academic (2002, September 12).
(4) (2002, July 16) Chewing the Sashimi with Jeff Bezos…Business
Week Online (Online). Available: Infotrac General Reference
Center Gold (NCLIVE)
(2002, September 12).
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