Questions
1 By referring to the case study, Amazon’s web site for your country and your experience of Amazon offline
communications evaluate how well Amazon communicates their core proposition and promotional offers.
2 Using the case study, characterise Amazon’s approach to marketing communications.
3 Explain what distinguishes Amazon in its uses of technology for competitive advantage.
4 How does the Amazon ‘culture of metrics’ differ from that in other organisations from your experience.CHAPTER 9· MAINTAINING AND MONITORING THE ONLINE PRESENCE
Year Ended December 31
2004 2003 2002 2001 2000
(in thousands, except per share data)
Net sales $6,921,124 $5,263,699 $3,932,936 $3,122,433 $2,761,983
Income (loss) before change in accounting principle 588,451 35,282 (149,933) (556,754) (1,411,273)
Cumulative effect of change in accounting principle — — 801 (10,523)
Net income (loss) 588,451 35,282 (149,132) (567,277) (1,411,273)
Basic earnings per share (1):
Prior to cumulative effect of change in accounting principal $ 1.45 $ 0.09 $ (0.40) $ (1.53) $ (4.02)
Cumulative effect of change in accounting principal — — 0.01 (0.03) —
Basic earnings per share (1) $ 1.45 $ 0.09 $ (0.39) $ (1.56) $ (4.02)
Diluted earnings per share (1):
Prior to cumulative effect of change in accounting principal $ 1.39 $ 0.08 $ (0.40) $ (1.53) $ (4.02)
Cumulative effect of change in accounting principal — — 0.01 (0.03) —
Diluted earnings per share (1) $ 1.39 $ 0.08 $ (0.39) $ (1.56) $ (4.02)
Shares used in computation of earnings (loss) per share:
Basic 405,926 395,479 378,363 364,211 350,873
Diluted 424,757 419,352 378,363 364,211 350,873Balance Sheet and Other Data:
Total assets $3,248,508 $2,162,033 $1,990,449 $1,637,547 $2,135,169
Long-term debt and other 1,855,319 1,945,439 2,277,305 2,156,133 2,127,464Sources: Internet Retailer (2003), Marcus (2004), Round (2004), SEC (2005)Summary
1 A structured measurement programme is necessary to collect measures to assess a web
site’s effectiveness. Action can then be taken to adjust the web site strategy or promo-
tional efforts. A measurement programme involves:
Stage 1: Defining a measurement process.
Stage 2: Defining a metrics framework.
Stage 3: Selecting of tools for data collection, reporting and analysis.