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Whatever one may think of its long-term prospects, Amazon.com clearly stands in today's front rank of online businesses. It can legitimately claim to be the first of the Web bookstores to reach a global mass market, to be "Earth's largest bookstore," and to have delivered significant value to shareholders, with an eighteen-month stock-price return in excess of 1,300%. These superlatives aside, Amazon continues to help define the Internet as a consumer environment, with rules, limits, and opportunities often different from those experienced in physical channels. Operating under assumptions at variance with conventional retailers, Amazon is a harbinger of successful business practices in a connected economy. To anticipate this study's main points, they are the following: * Amazon uses software connected to a network to understand then meet customer needs for information goods. Prime goals are thus to increase the power of the software and the reach of the network, then to expand...

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