Case Abstract: Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July, 1994, and sold its first book in July, 1995. Amazon quickly grew from an online bookstore to the world’s largest online retailer, greatly expanding its product and service offerings through a series of acquisitions, alliances, partnerships and exclusivity agreements. By 2010, 43% of Amazon net sales were from media, including books, music, DVDs/video products, magazine subscriptions, digital downloads, and video games. More than half of all Amazon sales came from computers, mobile devices including the Kindle, Kindle Fire, and Kindle Touch, and other electronics, as well as general merchandise from home and garden supplies to groceries, apparel, jewelry, health and beauty products, sports and outdoor equipment, tools, and auto and industrial supplies. Amazon faced several other challenges including those from state governments that wanted it to collect sales taxes so that it did not adversely compete against local businesses. Amazon was at a crossroads with regard to its push into technology vs. its general merchandise.CASE OBJECTIVES:Discuss product innovation: eReaders and tablets.Discuss online sales and streaming.Discuss domestic/international online growth opportunities.Discuss the merits of same day delivery.Discuss sales tax collection and state govt. relations

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