amazon 03 - the dot-com bubble
Post on 13-Sep-2014
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In 1999 a dozen of Walmart executives moved to Amazon creating plenty of frictions. Amazon employees were in their late 20 early 30s vs. Walmart’s 40-50s. In the summer of 2000, in the span of three weeks, Amazon’s stock price lost half of its value (from $57 to $33). Employees started to get nervous and even top managers grew disillusioned. In March 2001, Amazon stock was 10$.TRANSCRIPT
Pere Joan Ribas Barceló
Amazon.com and the Dot-com bubble
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CIEE Study Center in Palma de Mallorca Entrepreneurship and Innovation Course
Pere Joan Ribas Barceló [email protected]
Dot-com bubble
Dot.Com Bubble Most of these investments went bust during the dot.com bubble and Amazon lost hundreds of millions.
1999 2000 2001
CRISIS MANAGEMENT
§ Amazon announced plans to layoff 15% of its workforce and over the next year many Amazon executives resigned or were fired.
Source: Yahoo finance
§ Amazon executives were worried that Walmart.com would start selling books at a loss to keep them out of the business.
The long way
§ Google started to compete with Amazon for customers and talented engineers.
§ In 2004 Amazon created it own search engine to compete with Google at A9.com but it was a failure and shut down in 2007.
§ Categories like electronics (1999) and jewellery (2003) were not yet profitable.
§ In 2004, 75% or Amazon’s revenues came from books, CDs and DVDs. Amazon needed to move quickly to digital.
2002 2003 2004 2005 2006 2007
$150
$100
$50
Amazon.com TIMELINE
1-CLICK ORDERING PROCESS
FREE SHIPPING
($100)
FREE SUPER SAVER
SHIPPING CD’s and DVD
Toys and Electronics
Bezos named Time’s Person
of the Year
Amazon Video
MARKETPLACE
PERSONALIZATION FEATURE
Source: Yahoo finance
Amazon reported its first profitable quarter
Amazon prime
Jewelry
Amazon MP3
Amazon Video
Kindle
Kindle 2
§ The Everything store: Jeff Bezos and the age of Amazon, Brad Stone (2013)
§ One Click: Jeff Bezos and the Rise of Amazon.com, Richard L. Brandt (2011)
§ The Age of the Platform: How Amazon, Apple, Facebook, and Google Have Redefined Business, Phil Simon (2011)
§ Inside the Giant machine: An Amazon.com Story, Kalpanik S. (2011)
§ Amazon.com: Get Big Fast, Robert Spector (2002)
§ Amazon Top Seller Secrets: Insider Tips from Amazon's Most Successful Sellers(2009)
Bibliography
Videos
§ Amazon's Truth Behind the Click BBC Documentary
§ Amazon.com Full Story - World Biggest Online Retailer Revealed
§ Exclusive Interview with Jeff Bezos - Founder & CEO of Amazon
§ Amazing Amazon Story - Jeff Bezos Full Speech
§ TED: Jeff Bezos: The electricity metaphor
§ Amazon's Jeff Bezos looks to the future
§ Four Peaks: My interview with Jeff Bezos
§ Inside Amazon: Secrets of an Online Mega-Giant
§ Amazon's Truth Behind the Click
§ Jeff Bezos at the Stanford Graduate School of Business
§ Jeff Bezos on Amazon, Innovation, Customer Service, Kindle
§ Jeff Bezos discusses Amazon Business Model and Mission
Internet companies series!