1. Elliot Friar, Stephanie Gulmantovicz, Alara Icten and Amanda Horton
2. Amazon Quickly Expands
• Founder Jeff Bezos identified
and fulfilled need for online
• Company name strategically
• Company went public
• Expanded product line
• Iconic arrow logo debuted
• Added other retailers
• Started selling used
• Amazon Prime launches
• Launch of Amazon “Kindle” • Launch of Amazon “Kindle
• Amazon Instant Video
• Drone delivery announcement
• Amazon Original programming
2005–07 2010 2011-
3. Variety And Quality At A Low Price
Positioning Statement: For people who use the internet
who want a wide selection of quality, affordable items,
Amazon is an online marketplace that provides reasonably
priced items. Unlike Walmart that doesn’t focus on customer
satisfaction, Amazon offers affordable pricing while still
focusing on customer centric values.
Target Audience: All internet users
4. Earth’s Most Customer-Centric Company
“To be Earth’s most customer-centric
company, where customers can find and
discover anything they might want to buy
online, and endeavors to offer its
customers the lowest possible prices.”
5. Amazon On The Rise
Most Trusted US Corporation
(American Customer Satisfaction Index, 2009 and 2011) (2013 Harris Poll RQ Study)
of American Consumers
regard Amazon as a threat in
privacy terms (Ad Age)
Fulfillment centers in North
America offer high Availability
selection of products at the
lowest prices on easy-to-
use website interface.
In Customer Satisfaction
6. Brand Equity Increases
• Brand equity has increased over the past five years, shown in goodwill.
Amazon has built its brand equity on excellent customer service and a wide
range of quality items.
2010 2011 2012 2013
Goodwill (Yahoo Finance)
7. Rising Profit, Increasing Operating Expenses
• Amazon Inc.’s Gross Profit has almost tripled from
• Amazon’s expenses have risen leading to a
decreasing trend of its overall net income.
• Amazon Inc. – 331.80
8. Amazon Leads Competitors
Competitors Price Selection
X X X X
Dominating The Online Shopping Market
• Amazon is the leading online retailer in a $225.5 billion market (US)
• Amazon is growing faster than the other top online retailers.
• Increase from $24.51B (2009) to $74.45B (2013) in worldwide revenue.
(Mintel and MarketWatch)
STAPLES AMAZON APPLE WALMART DELLSTAPLES AMAZON APPLE WALMART DELL
2011 US Sales of Top 5 Online Retailers % Change in Sales from 2010–2011 for Top 5 Online Retailers
10. Amazon’s Six Pillars of Marketing
It freely offers
It uses a
It scales easily
from small to
11. Amazon’s Six Pillars of Marketing
It exploits its
It uses existing
4 It utilizes
12. Amazon Relies On Online Advertising
• Google Pay-Per-Click advertising
• Major reductions in offline advertising.
1999: $80 million
2009: $9.4 million
• $2 Billion in advertising spending in 2013.
• Amazon hires an offline advertising agency for its
products (Kindle) while it deals with online
13. An Amazon America
Amazon also has distribution centers in UK, Germany, India, Japan,
China, Czech Republic, Italy, Poland and France.
14. Expanding Distribution
• Amazon’s almost $13.9 billion spending binge on
fulfillment expenses – including 50 new facilities –
• Products can be ordered online and then be delivered
to a customer’s door or a nearby store within hours.
• Amazon Prime and Student programs.
• Manufacturer – Retailer Relationship
15. Amazon Extends and Innovates From A-Z
16. The Few Challenges
• Confusing slogan
• Growth risks brand identity
• Corporate Life
17. The Amazonians Attack
• “Escalation Emails” – How Jeff Bezos deals with
• Rigorous promotion processes.
• Corrupt corporate governance.
18. The Counterattack
• Diversify and spread out shares throughout the
• Pay To Quit
• Less stressful environment to work.