Amazon - Manager Report

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Group Presentation about Amazon simulating an annual report in front of share holders (European University, MBA Term 2-2013, Strategic Management)

Published in: Business, Economy & Finance

Amazon - Manager Report

  1. 1. Seattle - Feb 26, 2013Annual MeetingStella Khaikina Irina Burmistrova Umer Razi Krishna Raditya Nils Niederheide
  2. 2. Annual Meeting 2013• Business Mission• Business Model• History / Milestones• Operating Business1. Company AnalysisCompany Market Strategy Future Conclusion Q&A
  3. 3. Annual Meeting 20131.1 History / MilestonesCompany Market Strategy Future Conclusion Q&A
  4. 4. Annual Meeting 20131.2 Business VisionWe seek to be Earth’s mostcustomer-centric companyfor four primary customer sets:consumers, sellers, enterprises, andcontent creators.Company Market Strategy Future Conclusion Q&A
  5. 5. Annual Meeting 20131.3 Business ModelCompany Market Strategy Future Conclusion Q&A
  6. 6. Annual Meeting 2013Online ShopKindle DeviceMusic, Video,E-Books, SoftwareWeb Services(Cloud Computing)B2C B2C B2C & B2B1.3 Business ModelElectronics &General MerchandiseMedia OthersCompany Market Strategy Future Conclusion Q&A
  7. 7. Annual Meeting 20131.3 Business ModelElectronics &General MerchandiseMedia Others34% CAGR 12% CAGR 59% CAGR32% 4%63%Company Market Strategy Future Conclusion Q&A
  8. 8. Annual Meeting 20131.4 Operating BusinessCompany Market Strategy Future Conclusion Q&A
  9. 9. Annual Meeting 20131.4 Operating BusinessCompany Market Strategy Future Conclusion Q&AShare $$266.84(25$February)
  10. 10. Annual Meeting 2013• Market Conditions• Competition• Positioning• Strategy2. Market AnalysisCompany Market Strategy Future Conclusion Q&A
  11. 11. Annual Meeting 20132.1 E-CommerceMarket AnalysisCompany Market Strategy Future Conclusion Q&A
  12. 12. Annual Meeting 2013Holiday Online Shopping Trend(Nov – Dec 2012), USA2.1 E-CommerceMarket AnalysisCompany Market Strategy Future Conclusion Q&A
  13. 13. Annual Meeting 2013% Composition of RegionalVisitorsComScore (2011)2.1 E-CommerceCompetitors0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %14,9 %35,4 %34,6 %83,4 %32 %4,5 %26,7 %31,8 %46,9 %8,9 %29,6 %5,3 %41,1 %24,1 %11,7 %0,7 %24,9 %85,7 %8,7 %4,5 %4,0 %0,7 %8,0 %2,5 %8,6 %4,2 %2,8 %6,4 %5,6 %2,0 %Total InternetAmazon SiteseBayWalmartApple.comAlibaba.comNorth America Europe Asia Pacific MEA Latin AmericaCompany Market Strategy Future Conclusion Q&A
  14. 14. Annual Meeting 20132.1 E-CommerceCompetitors
  15. 15. Annual Meeting 20132.1 E-CommercePerformanceHigh%Compe++on%for%Market%Share%Faster%Thinking%Faster%Response%Time%Faster%Decision:Making%Faster%Development%Company Market Strategy Future Conclusion Q&A
  16. 16. Annual Meeting 20132.2 MediaMarket AnalysisCompany Market Strategy Future Conclusion Q&A
  17. 17. Annual Meeting 20132.2 MediaCompany Market Strategy Future Conclusion Q&AMarket Analysis
  18. 18. Annual Meeting 2013• Amazon compete withNetflix in content space• E.g. Digital video bundledwith amazon membership• Just for kids vs digital videoamazon membership• Offers prime subscriber $79 per year• Shares of Netflix tumbled by 6 percent2.2 MediaCompetitorsCompany Market Strategy Future Conclusion Q&A
  19. 19. Annual Meeting 2013• Apple vs. Amazon(music, eBooks & videos)• Amazon drops eBook pricesto match apple prices• E.g. James Rollins bloodlines• It costs $10.94 in kindler store• iTunes cost at $9.99• Few hours same price at both stores(kindle store & iTunes)2.2 MediaCompetitorsCompany Market Strategy Future Conclusion Q&A
  20. 20. Annual Meeting 20132.3 Other ServicesCompany Market Strategy Future Conclusion Q&A
  21. 21. Annual Meeting 2013• Fast growing Industry• Intensive Battle• Market share & Loyalty• Cost leadership• Expertise / Knowledge2.3 Other ServicesCompany Market Strategy Future Conclusion Q&A
  22. 22. Annual Meeting 20132.3 Other ServicesMarket AnalysisCompany Market Strategy Future Conclusion Q&A$250 bn
  23. 23. Annual Meeting 2013• Amazon.com is one of AWSs biggest users2.3 Other Services70% MS4%5%CompetitorsCompany Market Strategy Future Conclusion Q&A
  24. 24. Annual Meeting 2013• Price advantage• Advanced infrastructure & Ease of scaling operations• Part of an integrated suite of cloud-based products2.3 Other ServicesCompetitorsCompany Market Strategy Future Conclusion Q&A
  25. 25. Annual Meeting 20132.4 Market AnalysisConclusionE&M: 2Media: 3AWS: 0E&M: 5Media: 5AWS: 5E&M: 4Media: 5AWS: 5E&M: 5Media: 5AWS: 5E&M: 16/4 = 4Media: 18/4 = 4,5AWS: 15/4 = 3,75High competition!!!Company Market Strategy Future Conclusion Q&A
  26. 26. Annual Meeting 2013• Corporate PositioningDimensions for Harris Annual Reputation Poll2.4 Market AnalysisConclusionCompany Market Strategy Future Conclusion Q&A
  27. 27. Annual Meeting 20133. StrategyCost LeadershipIntegrationEconomy of ScaleInter-RelationshipsCapacity Utilization TimeCompany Market Strategy Future Conclusion Q&A
  28. 28. Annual Meeting 20133. StrategyCompany Market Strategy Future Conclusion Q&A
  29. 29. Annual Meeting 20133. StrategyHorizontalVerticalCompany Market Strategy Future Conclusion Q&APortfolio Extension & AcquisitionsProduction / Service ProviderKindle (Own Devices) & AWS (B2B Services)
  30. 30. Annual Meeting 20133. StrategyHorizontalVerticalCompany Market Strategy Future Conclusion Q&AEcosystem
  31. 31. Annual Meeting 2013Internet /Cloud3. StrategyAppsE-BooksMusicMarketplaceCompany Market Strategy Future Conclusion Q&A
  32. 32. Annual Meeting 2013• Device Orientation• Consumer Culture• Differentiation• OS Business• B2B Orientation• Differentiation• Software & Information• Innovative Culture• Differentiation• Ecosystem Competitors3. StrategyCompany Market Strategy Future Conclusion Q&A
  33. 33. Annual Meeting 2013• Recommendations• Data Support4. Future StrategiesCompany Market Strategy Future Conclusion Q&A
  34. 34. Annual Meeting 20134. Future StrategiesCompany Market Strategy Future Conclusion Q&A
  35. 35. Annual Meeting 20134. Future StrategiesCompany Market Strategy Future Conclusion Q&A
  36. 36. Annual Meeting 20134. Future Strategies• Cause Analysis by Segment• Sales by Segment Contributor 2011 vs 2012Million DollarMillion Dollar World Wide ContributionWorld Wide Contribution GrowthNorth America- Media- Electronic & GeneralMerchandise- Other ServiceInternational- Media- Electronic & GeneralMerchandise- Other Service2011 2012 2011 2012 2011 - 20122011 2012 2011 2012 2011 - 20127.959,00 9.189,00 16,55% 15,04% 15,45%17.315,00 23.273,00 36,02% 38,09% 34,41%1.431,00 2.351,00 2,98% 3,85% 64,29%9.820,00 10.753,00 20,43% 17,60% 9,50%11.397,00 15.355,00 23,71% 25,13% 34,73%155 172 0,32% 0,28% 10,97%FantasticGrowth !HighlyDependenton E&GMSource:Amazon Financial Report Q4 2011 and 2012Company Market Strategy Future Conclusion Q&A
  37. 37. Annual Meeting 20134. Future StrategiesStrategicGoalsOpportunity Short Term Long TermNorthAmericaOperationExcellent &ServiceInnovationGrowth Sales64.29% from“Other”SegmentOptimized thesales revenuefrom “Media”SegmentOptimized therevenue fromCloud Service &AWSInter-nationalCost Efficient &re-design cost ofsalesElectronic &Generalmerchandise is thesecond biggest WWSales Revenuecontributor 25.13%of WW SalesRevenueOptimized thesales revenuefrom “Media”SegmentOptimized therevenue fromCloud Service &AWSCompany Market Strategy Future Conclusion Q&A
  38. 38. Annual Meeting 2013MediaContributorMusicE-BookMovieMarketCompositionMarketCompositionMarketGrowth(%)AmazonMarketShareSource2012 2017MarketGrowth(%)AmazonMarketShareSource46% 40% 15% 16%Ovum GlobalAnalyst,www.hyperbot.com3% 24% 70% 56%Forrestor Research,www.seekingalpha.om50% 36% 35,2% 22%AccuStreamResearch,www.wmctv.comOptimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  39. 39. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  40. 40. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  41. 41. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  42. 42. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  43. 43. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  44. 44. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  45. 45. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  46. 46. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  47. 47. Annual Meeting 2013Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  48. 48. Annual Meeting 2013Q 2 - 2013Upgrading the iOS AppsOptimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  49. 49. Annual Meeting 2013MillionDollarGrowth YTD2013MarketGrowthNorthAmericaInternational11.486,25 25,00% 12,14%12.365,95 15,00% 13,16%Optimized salesrevenue from“Media” SegmentMarketAction /HowScheduleTargetSales Rev4.1 Future StrategySales Revenue (Short-term)Company Market Strategy Future Conclusion Q&A
  50. 50. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future StrategyPaaS is a category of Cloud Computing Service that provide a ComputingPlatform and a Solution Stack as a service.Market ShareCompany Market Strategy Future Conclusion Q&A
  51. 51. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future StrategyPaaS is a category of Cloud Computing Service that provide a ComputingPlatform and a Solution Stack as a service.Market ShareCompany Market Strategy Future Conclusion Q&A
  52. 52. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future StrategyPLATFORMHARDWARE + SOFTWARE?Market ShareCompany Market Strategy Future Conclusion Q&A
  53. 53. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future StrategyMarket ShareCompany Market Strategy Future Conclusion Q&A
  54. 54. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future StrategyHOW ?Market ShareCompany Market Strategy Future Conclusion Q&A
  55. 55. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future StrategyQ 3 - 2 0 1 3development in progressMarket ShareCompany Market Strategy Future Conclusion Q&A
  56. 56. Annual Meeting 2013Optimized therevenue fromCloud Service & AWSMarketAction /HowScheduleTargetMarketShare4.1 Future Strategy20 %of the market valueMarket ShareCompany Market Strategy Future Conclusion Q&A
  57. 57. Annual Meeting 2013HR RELATEDSTRATEGY(Embedded AmazonValue to Employee)WhyFigureBenefit4.2 Future StrategyEasy to move aroundamong the industryInternal EfficiencyCompany Market Strategy Future Conclusion Q&A
  58. 58. Annual Meeting 2013Increase the Operating CostUnstable Innovation CreationHR RELATEDSTRATEGY(Embedded AmazonValue to Employee)WhyFigureBenefit4.2 Future StrategyInternal EfficiencyCompany Market Strategy Future Conclusion Q&A
  59. 59. Annual Meeting 2013Increase the Operating CostUnstable Innovation CreationCompared byAnnual-SalaryEmployee Level30% - 50% Entry Level150% Middle Level400% Specialized / High LevelHR RELATEDSTRATEGY(Embedded AmazonValue to Employee)WhyFigureBenefit4.2 Future StrategyInternal EfficiencyCompany Market Strategy Future Conclusion Q&A
  60. 60. Annual Meeting 2013HR RELATEDSTRATEGY(Embedded AmazonValue to Employee)WhyFigureBenefit4.2 Future StrategyInternal EfficiencyCompany Market Strategy Future Conclusion Q&A
  61. 61. Annual Meeting 2013StrengthenAMAZON ECOSYSTEMHR RELATEDSTRATEGY(Embedded AmazonValue to Employee)WhyFigureBenefit4.2 Future StrategyInternal EfficiencyCompany Market Strategy Future Conclusion Q&A
  62. 62. Annual Meeting 20135. ConclusionCompany Market Strategy Future Conclusion Q&A
  63. 63. Annual Meeting 2013IntegrationNew Cloud Services5. Conclusion2013Company Market Strategy Future Conclusion Q&AShort-TermViewOptimization & InternationalStrengthen Int. Market PositionIntegrationPatent for “secondary marketfor digital objects”
  64. 64. Annual Meeting 20135. ConclusionCompany Market Strategy Future Conclusion Q&AShort-TermViewOperating ProfitKindleEcosystem2013
  65. 65. Annual Meeting 20135. ConclusionCompany Market Strategy Future Conclusion Q&AShort-TermViewOperating ProfitKindleEcosystem2013
  66. 66. Annual Meeting 20135. ConclusionCompany Market Strategy Future Conclusion Q&ALong-TermView20...• Digital Data vs.Physical ProductsTrends• New MarketOpportunities• Products - ServicesInternet /CloudAppsE-BooksMusicMarketplaceProd./Serv.Tech.Market
  67. 67. Annual Meeting 20135. ConclusionCompany Market Strategy Future Conclusion Q&AWhy invest inmarket share?
  68. 68. Annual Meeting 20135. ConclusionCompany Market Strategy Future Conclusion Q&A
  69. 69. Annual Meeting 2013Company Market Strategy Future Conclusion Q&AThank You!

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