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Bus 508 Assign 2

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Submitted By kellicowin
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“Assignment #2: Amazon.com’s E-Business Model”

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BUS 508 Contemporary Business
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Amazon’s E-Business Model Amazon has broken ground on a new way of doing business. They have become the leader in their industry online and continue to lead the way in innovation and technology. To understand a bit more about the workings of this company and to discuss some key facts about why Amazon is where they are today, this paper will emphasize four key topics: Growth and Diversification; To Split or Not to Split; Can Barnes & Noble or Borders Keep Up; and Online Only. After review of the topics, one will be able to clearly see why Amazon is a company to model.
Growth and Diversification (Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.)

When asked to discuss the pros and cons of Amazon’s growth and diversification of business and specialization, one finds it difficult to criticize Amazon for anything they have done so far. Amazon is leading the way in terms of growth and diversification. Amazon has a solid business plan and mission statement in place which they strive to adhere to at all times and at all costs. Jeffrey Bezos, founder and CEO of Amazon, is straight-forward in his approach to the shareholders as well as his customers, employees and business partners. Mr. Bezos initially began his company in 1994 with a business plan that initially “was unusual: the company did not expect a profit for four to five years. Its "slow" growth provoked stockholder complaints that the company was not reaching profitability fast enough” (Unknown, 2011). Bezos stuck to his guns by insisting that profit was not the main focus in the early years. Eventually, in late 2001, the company saw its first profit. In...

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