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Romain english presentation Romain english presentation Presentation Transcript

  • Summary:Why is Amazon.com so successful?•  The goal of this presentation is: Ø  First, to show how big is Amazon Ø  Then, to explain in what Jeff Bezos is a genius Ø  And finally, to illustrate his visions Friday 17th February 2012 Why is Amazon so successful? 1
  • WHY IS AMAZON.COM SOSUCCESSFUL?Friday 17th February 2012
  • Amazon.com, a digital shop around thecorner… Example: Friday 17th February 2012 Why is Amazon so successful? 3
  • … and a digital colossus. Friday 17th February 2012 Why is Amazon so successful? 4
  • Amazon.com is a giant… E-commerce Y/Y growth for Q1 2011 +38% 3 x growth of market Market cap $90 bn 2 x market cap Customers 137 m 2 x customers Employee 33,700 15 x more than Turnover $34 bn 16% more than Internet traffic rank 16th before Retail brand 1st before Paid out $1.2 bn to buy Friday 17th February 2012 Why is Amazon so successful? 5
  • Why? Because Jeff Bezos had a vision. “You could build a store online that simply could not exist in any other way. You could build a true superstore with exhaustive selection; and customer value selection.” Jeff Bezos 1 Digital enables limitless inventory 2 Digital boosts customer care 3 Digital allows higher margins, lower prices Friday 17th February 2012 Why is Amazon so successful? 6
  • To enable limitless inventory, Amazonneeded to get big fast… More merchants More More traffic selection Growth Better customer experience Friday 17th February 2012 Why is Amazon so successful? 7
  • … and achieved it by three differentmeans. •  Build Ø  From time to time, Amazon simply creates a new category. Ø  Example: •  Buy Ø  When competitors are already established, Amazon may buy out an incumbent. Ø  Example: •  Partner Ø  In some vertical markets, Amazon offers its technology service and e-commerce expertise to third parties. Ø  Example: Friday 17th February 2012 Why is Amazon so successful? 8
  • Did you know that all these companiesbelong to Amazon.com? Friday 17th February 2012 Why is Amazon so successful? 9
  • Why? Because Jeff Bezos had a vision. “You could build a store online that simply could not exist in any other way. You could build a true superstore with exhaustive selection; and customer value selection.” Jeff Bezos 1 Digital enables limitless inventory 2 Digital boosts customer care 3 Digital allows high margin, lowest prices Friday 17th February 2012 Why is Amazon so successful? 10
  • Jeff Bezos has built a customer centriccompany based on innovations. An outstanding customer service E-commerce easier than commerce Why •  “If you make customers unhappy on •  1995: Customer reviews the internet, they can each tell •  1997: Recommendations & bundle Select •  2001: Look inside the book 6,000 friends.” •  2003: Search inside the book •  Customer service is the only human- to-human interaction for an e- commerce website. Order •  1997: 1-click ordering How •  Amazon developed its own software to manage e-mail centers and 90% of Receive •  2001: Where’s my stuff customer service is done by e-mail. •  2002: Free supersaver shipping •  Human: Every employee, even the CEO, spends two days every two years on the service desk to answer calls and help customers. Friday 17th February 2012 Why is Amazon so successful? 11
  • Why? Because Jeff Bezos had a vision. “You could build a store online that simply could not exist in any other way. You could build a true superstore with exhaustive selection; and customer value selection.” Jeff Bezos 1 Digital enables limitless inventory 2 Digital boosts customer care 3 Digital allows higher margins, lower prices Friday 17th February 2012 Why is Amazon so successful? 12
  • To be cheaper than its competitors,Amazon.com focuses on volume… Better customer experience Lower Growth prices Lower cost structure Friday 17th February 2012 Why is Amazon so successful? 13
  • … and its competencies such as logisticsand tracking.•  Optimizing its supply chain thanks to its digital advantage: Ø  Automatically chooses the cheapest origin for the customer’s order in real- time. Ø  It will re-optimize it based on the other customers’ orders.•  A data driven company: Ø  Amazon pionneered A/B testing in 1997. Ø  In 2001, Amazon implemented software to measure its costs for each shipped product.•  Sharing cost centers: Ø  With Fulfillment by Amazon, sellers let Amazon handle their logistics. Ø  Amazon monetizes its know-how in scalability and reliability. Friday 17th February 2012 Why is Amazon so successful? 14
  • Other brilliant ideas.•  Digital driven supply chain Ø  Amazon hired from the expert, Walmart.•  Amazon Web Services monetizes Amazon’s know-how in scalability and reliability. Friday 17th February 2012 Why is Amazon so successful? 15
  • Amazon Web Services drives thesecompanies. Friday 17th February 2012 Why is Amazon so successful? 16