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Amazon.com, the world''s leading on-line retailer had survived for nine long years without annual profits because it was guided by a long-term vision that put into place strategies for research, and the development of technology infrastructure. The company finally turned the corner by posting profits for the first time in 2003. The case details the diversification of Amazon.com into a software developer for other on-line retailers. With its history of not posting profits, and having turned the corner recently, the big question was whether Amazon would survive the onslaught of major competitors like e-Bay, and continue to retain the number one position while at the same time realise reasonable levels of earnings to satisfy shareholders. This was the dilemma that founder Jeff Bezos and his team had to address. A structured assignment ''306-173-4'' is available to accompany this case.