Scenario 8-2
Following the announcement that the world's largest e-tailer, Amazon.com, made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse.It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years.Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet.It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street.
Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows.As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost.Some years ago, it reported turning over its inventory 17 times a year-close to double that of traditional retailers at the time.And on average, it reported having gotten paid 32 days before it must pay its suppliers-in essence, providing millions of dollars in cash flow.
Information updated for 2011, based on the following initial articles:
(David Shook, "Can Amazon Turn Baby Steps Into Strides?," Businessweek Online, February 13, 2002.)
(Rob Hof, "Why Amazon Could Keep Flowing," Businessweek Online, January 5, 2005.)
-(Scenario 8-2) In the early days of Internet shopping, people were skeptical about the idea of buying things over the computer, largely due to their worries about privacy issues combined with their habitual patterns of purchasing at retail outlets.Some concerns remain today.But many years after the shake-out of companies in the dot-com world, players that survived have come back stronger.And new players have come onto the scene.The demand is there, and this has instilled a feeling of trust in millions of customers who make purchases online.The concept of customers having enhanced trust in e-tailing would most likely be contained in the section of the advertising plan.
A)budget analysis
B)market analysis
C)industry analysis
D)competitor analysis

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