The Brink of Bankruptcy Harvard Case Solution & Analysis

Question #1:

On a scale of 1 (Very Poor) to 5 (Best-in-Class), how would you rate Jeff Bezos as an entrepreneurial leader? How would you rate him as an operating manager? What did he do well, and what should he have done differently?

Answer #1:

The performance of Jeff Bezos as an entrepreneurial leader can be rated as 4 on a scale of 1(very poor) to 5(Best-in-class) and his skills as an operating manager can rated 3 as he has been successful in driving Amazon out of the trouble with his adequate skill set.

He introduced new business models to the company like introducing auctions and an online marketplace as well where individuals and small business owners were able to leverage the company’s propriety online retail infrastructure which allows them to gain access to millions of loyal customers.

He also hired executives from leading organizations in their respective industry. These hired executives added retail logistics and brand management expertise the online store was lacking. Then these executives lead on towards hiring needed talent to enable the threatened company to GET BIG FAST. These implications resulted in higher sales whereas the stock prices were stagnant.

Bezos efficiently communicated with its customers and through his words he influenced them towards believing in the future operations of the company. He took the customers and the stockholders under confidence with his words which lead the online retailer company towards growth.

Bezos was fully aware of what the company has to do to gain sufficient profits that support the cash-flow requirements of the company and also delivering the expected results to the investors of the firm. Bezos constantly kept on finding out new ways of leveraging the company capabilities on a rapid pace to deal with the competitors or traditional retailers. He was ready to take risks, as he knew that the level of potential returns is also high for the company under threat.

Question #2:

Trace the evolution of the business model from the company’s launch in 1995 through the dot-com collapse in 2000. What were the key changes in the company’s strategy and the capabilities and resources needed to execute the strategy?

Answer #2:

The key changes to the company’s strategy were amendments to the current business model company was following which was not doing very well for the growth of the company neither was it guiding the company towards meeting the investor’s expectations.

The key changes to the company’s strategy started in 1998 when the company entered new categories and entered Europe which has huge potentials for online retailing, followed by this the company started auctions over the web and it also launched a commerce network which allowed the customer to leverage the proprietorship of company’s infrastructure and finally the company joined hands with Toys“R”Us leading the company towards growth and generating sufficient volume of profits.

 Question #3:

Where did Bezos’ company get the capital needed to launch and build from 1995 through 2000? At what points in the company’s evolution did Bezos raise money, and what did he use the money for?

Answer #3: has been enjoying astonishing revenues and profits. The company has been experiencing growth at a rapid pace supported by characterized launch of Internet commerce. The company’s successful initial public offering (IPO) has amounted for $50 million. The company has wisely decided to use the generated money from the initial public offering and the capital associated with it for expanding its operations. The company has quickly decided to not only exist as an online retail bookstore but also enter other dimension with opportunities to grow.

The company has decide to use the generated revenues from the initial public offerings and associated capital for entering different categories like books, music, videos, toys, video games, consumer electronics, software, and a full line of kitchen and home improvement products.

Question #4:

Do you agree with the decision to do the deal with Toys“R”Us in August 2000?

Answer # 4:

The decision to start a partnership with Toys“R”Us is a wise decision, as the deal will open new dimensions for the online retailer and potentials for growth. This partnership will result in further expansion of the organization into new parameters of the industry. The company can expand into further more categories including both physical and online customer and logistics services which will include call centers, inventory management and distribution. By adding logistics services the organization would be having an edge due to the uniqueness of the idea. This would act as an innovative addition to the retail models, marketplace models and auctions models. The new combination of the business model would enable the company towards exponential growth in volumes of sales and profits......................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.