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 yearclose to double
that of traditional retailers at the time. And on average, it reported having gotten paid 32
days before it must pay its suppliersin 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.)
Like many firms, Amazon has refined its priorities over the years. Many firms begin by
setting as their advertising objective something that is often disputed by
communications-oriented marketers. They choose ____ as their primary advertising
objective.
a. stimulating trial use
b. boosting sales
c. establishing brand recall
d. identifying purchase intent
Axel Corporation undergoes a public relations audit. Ideally, the ultimate result of this
audit should be to:
a. replace its reactive strategy with a proactive strategy.