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This supplement is to accompany the case. This case presents the alliance set up in 2000 by the two firms to sell toys on-line. It describes the rationale that led each firm to enter the alliance, as well as the suggestions made by Amazon and Toys ’R’ Us respectively on how the alliance should be organised and managed. From this, students are expected to work out the hidden agenda of each firm, ie, learning about toy retailing for Amazon and about e-commerce for Toys ’R’ Us. This case illustrates how alliances based on complementary partners can lead to learning, knowledge leakage, and inter-partner competition.