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The third recommended alternative is global expansion. On the international front, Amazon.com has established websites in the United Kingdom, Germany, and most recently France. According to the chart titled America’s Growing Market Opportunity, the company has had great success overseas and there needs to be further expansion. The international business department of Amazon.com has done research on international expansion. The research has focused on new sites in Italy, Spain, and Japan. The most promising new site, based on the research, is Japan. (Amazon.com, Morgan Stanley)

Implementation:

It is not enough to simply make recommendations to improve the well – being of a company. Each recommended alternative needs an implementation plan. These implementation plans must address the departments involved, the actual plan itself, and a time – table of when things will occur, and most importantly a single champion. This champion will make the plan work as their top priority.

In most cases companies try to broaden their lines, not narrow them. Amazon is no different. Amazon.com is constantly forming new partnerships and alliances to attract new customers. It formed an alliance with ofoto.com, an online photography service. The newly acquired electronic line of business has become the second largest category behind books. Their best seller is DVDs. Amazon.com wants to form more alliances with companies like Toysrus.com and enter into new product categories. Selection is considered an advantage and not a disadvantage. Amazon’s goal of being a one – stop shop for everything online will bring the company great success. After carefully researching the history of partnerships and determining what made them a success or failure, new partnership plans will be implemented. (Ries, 2000), (Bloomberg News, 2000), (Amazon Quarterly Report, 2000)

Recently, Amazon.com has developed many high – powered partnerships and alliances. Amazon has a promotional alliance with America Online where Amazon products are available across several AOL brands. There is also an Amazon link on the AOL homepage. Amazon paid approximately 19 million dollars to AOL for this service. Although costly, we believe further alliances are one element in creating future profits. Amazon has a partnership with Microsoft to deliver e – books online, which will be discussed later in this paper. The finance department has assured us that there is funding available for these partnerships. The department feels that Amazon’s main concern is profitability and more partnerships are a step in the right direction. Amazon already has America Online and Microsoft as two huge partners. We feel the next step should be to create partnerships in different high – powered market segments. (Balluck, 2000)

Plans have been made to talk with Nordstrom. Talks will begin in 2001 allowing time for further research. We need to establish a synergistic relationship with a company where both will benefit from this partnership. When visiting the Nordstrom website, the customer will see a link to Amazon.com for further information on the products. In exchange, Amazon.com will display a banner advertisement for Nordstrom. For every sale at Amazon from the Nordstrom site, Nordstrom will receive 5% of that sale. Amazon will receive a 10% commission for sales through its website.

Amazon has also targeted Nike with the same kind of deal. Nike will have a link to Amazon for books or information on sports. Amazon, in exchange, will have an advertising banner for Nike on the website. Nike, just like Nordstrom, will receive a 5% commission and Amazon 10%.

Both of these partnerships should be established by June 2001. We expect to see an overall revenue growth of 5% by June 2002, from commissions.

The key to enabling these two new partnerships is establishing a synergistic relationship. Synergy is the concept that joining the efforts of certain parts of an organization will generate results greater than the sum of their individual efforts. When Nordstrom and Nike establish partnerships with Amazon.com., all three companies will benefit. (Jain, 2000)

The second implementation plan deals with upgrading merchandise. Amazon has so many different partnerships that it would be too hard and very costly to upgrade everything. We have decided to start the upgrading with Amazon’s best selling products, books, music, and movies. Music has gone from cassettes and CDs to downloadable music. Amazon.com has a section of its website specifically for downloading music. Movies have gone from videos to downloadable video clips. We have decided that the next step should progress from books to e – books.

As stated in a previous paragraph, Amazon has created a relationship with Microsoft. This partnership will lead to Amazon opening an online e – bookstore using the Microsoft Reader format for e – books. Consumers will be able to buy and download these books. Dick Brass, Vice – President of Technology development for Microsoft, says: “Amazon is the largest vendor of books on the web and could be the largest vendor of e – books. They could help make e – books happen real fast.” (Gates, 2000)

There are many advantages of e – books over printed books. E – books have an incredible storage capacity. One disk will hold everything needed. E – books are also very versatile. They give the reader the ability to move/ copy important sections of the book from one place to another, making it easy to take notes. An electronic dictionary is included on each e – book, allowing the

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