The Impact of E-Commerce Strategies on Firm Value: Lessons from Amazon.Com

31 Pages Posted: 18 Sep 2001

See all articles by Darren Filson

Darren Filson

Claremont McKenna College - Robert Day School of Economics and Finance

Karyn Williams

Farmers Group Inc; Wilshire Associates, Inc.

Date Written: August 16, 2001

Abstract

Managers would like to understand which strategies generate value in e-commerce environments, and researchers are just beginning to explore this issue. Which strategies are useful and which are not? In a step towards answering this question, we estimate the impacts of several competitive strategies on the value of Amazon.com, the well-known Internet retailer, during its first 1000 days as a publicly traded firm. The strategies analyzed include pricing, offline expansion, alliance formation, product line expansion, and service improvement. The results provide insight into the usefulness of various ways of competing online and could be useful for strategic planning in new Internet ventures.

Keywords: alliance, competitive advantage, competitive strategy, event studies, internet, valuation

JEL Classification: G31, D81, L21, L81, M21

Suggested Citation

Filson, Darren and Williams, Karyn L., The Impact of E-Commerce Strategies on Firm Value: Lessons from Amazon.Com (August 16, 2001). Claremont Colleges Economics Working Paper 2001-25. Available at SSRN: https://ssrn.com/abstract=283531 or http://dx.doi.org/10.2139/ssrn.283531

Darren Filson (Contact Author)

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth Street
Claremont, CA 91711
United States

HOME PAGE: http://www.cmc.edu/academic/faculty/profile/darren-filson

Karyn L. Williams

Farmers Group Inc ( email )

4680 Wilshire Boulevard
Los Angeles, CA 90010
United States
3239648207 (Phone)

Wilshire Associates, Inc. ( email )

1299 Ocean Avenue, Suite 700
Santa Monica, CA 90401
United States
310-260-6690 (Phone)

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