Case Analysis Questions

Answer the following in up to 350 words each.

• Bezos once said, “Amazon may break even or even lose money on the sale of its devices.” The company expects to recoup the money later through the sale of products, with a further boost from its annual Prime membership fee.

Explain how this strategy shows Bezos as a systematic and intuitive thinker.

• It seems like everyone is streaming these days and there are a growing number of providers. Amazon is a player in the digital entertainment market, but hasn’t taken a clear lead.

Determine, based on the strengths of the company, what decisions should be made to ensure that Amazon jumps ahead and becomes the “No. 1” source for digital content streams.

• Compare the latest initiatives coming out of Amazon with those of the actual or potential competition.

• Conclude whether or not Bezos is making the right decisions as he guides the firm through today’s many business and management challenges.