business case presentation Presentation Transcript
AmazonCase PresentationSean LaneMarketing 476
Overview and History• Amazon is an American Multinational electroniccommerce company• Headquartered in Seattle, Washington• Worlds largest online retailer• Started as an online bookstore, but laterexpanded, selling DVDs, CDs, video and MP3downloads, software electronics, apparel andmuch more• Also produces consumer electronics, notably theAmazon Kindle e-book reader and the Kindle Fire
Overview and History• Jeff Bezos incorporated the company in July 1994 and the sitewent online as Amazon.com in 1995.• Company was named after the Amazon River, one of the largestrivers in the world.• Has separate retail website for US, Canada, United Kingdom,France, Germany, India, Italy, Spain Brazil, Japan, and China.
Chaordic Structure• Because of the massive volume of product it sells 24/7/365,Amazon maintains 80 enormous warehousing and fulfillmentcenters scattered around the known universe.• These multi-football arena sized premises take care of sourcing,organizing, packing and shipping millions of orders a day… Andsurprisingly, they do it with a vast number of workers who usesimple barcode scanners to find, and expedite on its way, anyitem in the warehouseThe seemingly counter-productive thing about Amazon’swarehousing system is that it relies on something described as"Chaotic Storage” where products are shelved at random, andbecause items are stored randomly rather than categoricallythere’s a more efficient use of shelf space.
CompetitorsAmazon.com being a multi-national e commerce site hasmany competitors in different categories
PartnersAmazon.com operates retail websites for Sears Canada,bebe Stores, Timex, Marks & Spencer, Mothercare, andLacoste.Amazon provides a unified multichannel platform where acustomer can interact with some people they call the retailwebsite, standalone in-store terminals, or phone-basedcustomer service agents.Amazon Web Services also powers AOLs Shop@AOL.On October 18, 2011, Amazon.com announced apartnership with DC Comics for the exclusive digital rightsto many popular comics
CustomersOver 200 million active user accountsMain customers are 30-50 years oldTech savy users and early technology adoptersBuyers who want the ease of purchasing a product onlineSeller customers
StakeholdersDistributors, suppliers, merchant program, shareholders,Software Development Centers, Call Centers,WarehousesHas 28 acquisitions, such as, Internet Movie Database(IMDb), Audible.com, and ZapposInvestments in Engine yard, a Ruby-on Rails platform as aservice company. LivingSocial, a local deal site4 SubsidiariesMerchant Partnerships: Amazon.com operates retailwebsites for Sears Canada, Bebe Stores, Timex, Marksand Spencer, Mothercare and Lacoste.
Competing in the Eco SystemThird party is a key seller of growth for Amazon. It allowsAmazon to increase selection and grow faster. It also helps pushdown prices on Amazon as third parties fight for buyersWhen Amazon was established, customers had an issuetrusting the e-commerce retailer. Amazon then came up with theidea of customer reviews. When people see other peoplesreviews, they feel more comfortable making a purchaseAmazon found out that when there is more involvement in thebrand, consumers will act as a brand ambassador. Amazoncreated affiliated marketing, where people recommend thebooks they like to others and get an income out off itAmazon has a bottom-up approach where every decision isdriven by the customers needs
AssetsAmazon has a bottom-up approach where every decisionis driven by the customers needs.
Amazon ProductsAmazon Kindle is an e-book reader that allowsusers to stream all types ofdigital mediaThe kindle surpassedpaper book sales for thefirst time 2010
Unique FeaturesIn 2007 Amazon launchedAmazon payments to directlycompete with PayPal. Thiscreated a barriers to entry fornew competition as the willhave to adjust to currentpayment methods. The newpayment selection worked asan add on to customerservice.Introduced Amazon gift card toinduce trial and repeatpurchaseAmazon made it difficult forcustomers to switch platformsfor reading their e-bookthrough their proprietaryformatPersonalized store: Trackspast purchase behavior anduses a modern alogorithm togive recommendationsLook and feel of the pagekeeps changing to givemodern outlookAnnual subscription savingschemes for loyal customersVertical Integration: Kindlebecame another reason forcustomers to return toAmazon
Intellectual PropertyThe technology that operates the kindle relies on manypatented features and processesOne-click Ordering: A patented delivery process thatallows the customer to save their billing information andshorten the checking out processAmazon’s internet based customer referral system is apatented process that allows other websites to markettheir books for a commission