Amazon.com: Marching Toward Profitability

Following the shareprice meltdown of Internet companies in 2000 and 2001, increased attention was paid to the profitability of companies whose business was in any way related to the Internet. As a benchmark company in electronic commerce, Amazon.com received intense scrutiny as it promised shareholders pro forma profitability by the end of 2001. This case explores the tools and strategies that Amazon has used to increase its profitability in 2000 and 2001. The case also examines Amazon’s evolution since its inception and asks where Amazon should go from here (mid-2001) given the constraints of a down stockmarket and increased competition from world-class competitors as it moves into other categories.