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Julian Corlaci
ECT 250 – 101
Homework 1
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Chapter 1
10.
Home penetration of PC’s
Expensive technology
Complex software interface
Sophisticated skill set
Persistent cultural attraction of physical markets and traditional shopping experiences
Persistent global inequality limiting access to telephones and personal computers
The most affected will be B2C E-Commerce
16.
E-Commerce I
E-Commerce II
Technology-driven
Revenue growth emphasis
Ungoverned
Venture capital financing
Entrepreneurial
Business-driven
Earnings and profits emphasis
Stronger regulation and governance
Traditional financing
Large traditional firms
18. The multi-disciplinary approach for understanding the e-commerce is necessary for a better grasp of
the significance of e-commerce in its entirety.
Project 4
June 13, 2001
The Japanese-language site of Amazon.com, announced that it has launched its Music, Video, and DVD
stores.
July 20, 2001
Amazon.com announced the launch of a new alliance with AT&T Wireless, giving all AT&T Digital
PocketNet customers access to Amazon.com's wireless website via their Internet-ready wireless phones.
July 23, 2001
Amazon.com and America Online, Inc., announced a new multi year strategic alliance. America Online
made a $100 million equity investment in Amazon.com common stock.
Analysts were expecting Amazon.com to report revenues of $732.6 million and a loss per share of $0.20
in the third quarter and revenues of $1.2 billion in the fourth quarter.
July 25, 2001
Amazon.co.uk, the U.K. site of Amazon.com, and Waterstone's, a specialist bookseller in the U.K., have
formed a strategic alliance.
August 20, 2001
Electronics retailer Circuit City Stores, Inc. announced a multi-year agreement with Amazon.com that will
enable Circuit City to offer its products and services to Amazon.com's millions of customers.
September 11, 2001
Amazon.com and retailer Target Corporation announced plans to open a Target store at www.amazon.com
October 23, 2001
Amazon.com announced that it continues to expect an operating profit for the fourth quarter of 2001. The
Company also sees quarterly revenues in the range of $970 million to $1.07 billion. The Company
reported full year 2001 net sales of $3.12 billion.
November 14, 2001
Reuters reported that shares of Amazon.com, along with other retailers, rose sharply after the release of
the Commerce Department's report that total retail sales rose a better-than-expected 7.1% in October.
January 22, 2002
Amazon.com reported an operating profit of $59 million and a net profit of $5 million
in the fourth quarter.
Amazon.com announced that net sales are expected to be between $775 million and $825 million for the
first quarter.
April 23, 2002
Amazon.com and Borders Group Inc. jointly announced a multi-year agreement to provide Amazon.com's
customers with the option of picking up books, music CDs and DVDs at Borders Books and Music stores
nationwide.
Amazon.com announced that it expects pro forma operating income of between $5 million and $15
million on revenues of between $765 million and $815 million for the second quarter and pro forma
operating income of over $100 million on revenues a revenue increase of over 15% for the full year 2002.
July 23, 2002
Amazon.com announced that for the third quarter, net sales are expected to be between $780 million and
$830 million. Pro forma operating income is expected to be between $8 million and $17 million, or
between 1% and 2% of net sales.
September 06, 2002
Amazon.com and Office Depot, Inc. announced an e-commerce strategic alliance with the launch of the
Office Products store at Amazon.com.
Sources:
www.yahoo.com , www.businessweek.com, www.infoworld.com
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After eight years, finally, Amazon.com achieved its first-ever net profit, moving this way to the most
important success in the e-commerce history, based on its particular business model.
Let’s not forget that it still carries $2.2 billion in long-term debt, which drains about $30 million in cash
every quarter. Taking in consideration its debts, this success apparently is just temporary.
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Chapter 2
1. Business Model: A set of planned activities designed to result in a profit in a marketplace. The business
model is the center of the business plan.
2. Value proposition, Revenue model, Market opportunity, Competitive environment, Competitive
advantage, Market strategy, Organizational development, Management team.
4.
Advertising (Fees from advertisers in exchange for advertisements)
Subscription (Fees from subscribers in exchange for access to content or services)
Transaction Fees (Fees for enabling or executing a transaction)
Sales (sales of goods, information, or services)
Affiliate (Fees for business referrals)
6. Movies, Documents, Software, Images
13.
“Virtual Store” - an online version of retail store, where customers can shop at any hour of the day
or night without leaving home or office.
“Click and Mortar” – an online distribution channel for company that also has physical stores.
14. Music, Photos, Video, Artwork
17. ASP (Application Service Provider) is a company that sells access to Internet-based software
applications to other companies.
21. Business strategies for achieving a profitable business: differentiation, cost, scope and focus.