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Chapter 2 case study A: zShops 1 A 1.Founder---Jeff Bezos 1986 graduated from Princeton and joined FITEL 1988~1990 Bankers Trust Company, led the development of computer systems that helped manage more than $250 billion in assets ,became the youngest vice president 1990~1994 helped build one of the most technically sophisticated and successful quantitative hedge funds on Wall Street for D. E. Shaw Co. 1 A 1.Founder---Jeff Bezos 1994~1995 quit his job, set up shop in his garage, developed database programs and created the website with his team 1995.7 A opened its virtual doors for business 1 A 2. Amazon history 1 A 3.today’s Amazon 1 A 3.today’s Amazon 1 A 3.today’s Amazon 1 A 3.today’s Amazon 1 A 3.today’s Amazon 2 zShops conception The zShops was a bazaar of online retailers who wanted to set up shop under the Amazon umbrella. Amazon opened its website to these merchants for a minimal fee. In return, the selling power house gathered huge amounts of information on consumer buying habits. 2 zShops strategic implications of this new business model: its benefit for Amazon was a steady cash flow without the costsassociated with a warehouse of products its move to become an unlimited shopping mall was an attempt to competewith Internet portals like America Online and Yahoo!, which offered links withmillions of websites and had substantially more monthly traffic. it provided an opportunity to take away some of the small-business revenue flooding into auction sites like eBay, Microsoft, Excite@Home, and Lycos,which agreed to share their auction listings. 2 zShops Organization of Amazon’s zShops The zShops was organized essentially by product and product category, not by stores. 3 Analysis of zShops business model 1. zShops—another new category of Amazon as an intermediary The action of add zShops made it clear that Amazon had the intention not only of diversifying its retail business, but also of solidifying its position as a market-maker by diversi
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