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1. Case 1-2: Amazon.com: The Brink of Bankruptcy
1.1. How did the Amazon.com business model evolve from the company’s launch in 1995 to early 2001?
2.1.1. Product-Market Enhancements:
Amazon.com launched as an online bookstore in a garage by Jeff Bezos in 1995. In order to be close to one of the largest book distributors he chose Seattle as the location.
In 1996, they focused on enhancing its product and service offerings and capabilities. Amazon.com offered powerful search capabilities as well as recommendation center. In addition, and to enhance the online shopping experience they created shopping carts, 1-Click shopping, wish lists and greeting cards. By early 1997, the company went public and their revenues increased by $ 16 million.
2.1.2. Product Expansions:
In1998, the company expanded to new products. Thus, Amazon.com enters the online music and video business. By late 1998, the firm expanded into selling toy, kitchen, and home stores.
In 1999 the firm expanded marketplace business model with equity partnerships with leading online retailers.
2.1.3. Market Expansions:
Between 1998 and 1999, the company expanded into international markets and entered Europe. Thus, they sold products in over160 countries by early 2001. Amazon.com had expanded from online bookstore into an online superstore.
2.1.4. Business Explorations:
In 1999, Amazon.com launched new business models including Z- stores and auctions. Thus, the firm provided the software and service but did not take control of inventory. In addition, the company built a state-of-the-art digital business infrastructure and operations that linked nine distribution centers and six customer service centers located across the United States, Europe, and Asia which cost the company over $429 million.
In late 2000, dot-com companies were declaring bankruptcy which caused the company executives to

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