“To survive and thrive in the current economy.”

1. “To survive and thrive in the current economy.” Team 2 Megan Coy Amber Dennis Lauren Gonzalez David Humeston Kevin Morgan

2. Overview • Drop Product Lines • Partnerships • Open a New Website in the Baltic Region • Expand Amazon.com’s Board of Directors • Create E-mail Service • Cut Distribution Centers • Stop Expanding Products • Stock Only Best Sellers • Marketing Mix

3. Drop Product Lines • Drop Electronics, Tools, and Kitchen • Auction off extra inventory

4. Partnerships • Truevalue.com • Circuitcity.com • Chefscatalog.com • The-golden-egg.com • Motion Picture Partnerships • yaTack.com

5. Open a New Website in the Baltic Region • Norway, Sweden, Finland, and Denmark • Strong online market • Partner with yaTack.com

6. Expand Amazon.com’s Board of Directors • Increase diversity and expertise • Include all CEOs of partners

7. Create E-mail Service • Bring in an increase of $720,000,000 in annual net sales, or 26% increase • Reallocate marketing expense of $38,100,000; 21% of current $180,000,000 expense • Overall increase in net sales of 5% after start-up costs, 1st year operating expenses, and discount expenses

8. Cut Distribution Centers • Cut five distribution centers in the U.S. • Keep facilities located in Delaware, (Lexington) Kentucky, and Nevada

9. Stop Expanding Products • Cease all product expansion • Only sell Books, Music, DVD/Videos • Sell other products through partnerships

10. Stock Only Best Sellers • Only stock fast moving products • “Just-in-time” delivery • Slow moving product orders fulfilled by other distributors, manufacturers, or (in the book segment) publishers themselves

11. Marketing Mix • Product • Price • Place • Promotion

12. Conclusion If Amazon.com uses these suggestions, we project that they will become profitable within one full year.

13. Questions