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Amazon.com (NASDAQ: AMZN), a Fortune 500 company based in Seattle, Washington USA. It was one of the first major companies to sell goods over the Internet and was one of the iconic stocks of the dot-com bubble.
Since its creation in 1995 when Amazon began as an online bookstore, they have significantly expanded the product offerings, international sites, and worldwide network of fulfillment and customer-service centers.
A blend of traditional retail principles and innovative application of marketing practices.
Now after thirteen years, Amazon has a revenue of 19 billion USD.
“ Amazon’s objective is not to discount a small number of products for a limited period of time, but to offer low prices everyday and apply them broadly across our entire product range.” – Amazon, 2009
Limited experience in merchandising non-core retail products like pharmaceuticals, sport equipment etc.
Substantially smaller retail sales volume limits ability to exploit.
Limited financial resources
Limited name recognition in selected markets like consumer electronics
Retail management depth
Inadequate warehousing and inventory management systems to support rapid sales growth
Fulfillment infrastructure for selected products like books.
Information technology infrastructure
Convenient online order entry system
Extensive experience in online marketing, advertising and fulfillment like satisfying customer orders.
Wall-Mart, Best Buy, Costco, etc are increasing their presence on the Internet To be perceived by Internet users as the performed online “department store” to exploit accelerating online retail sales Strengths Threat Opportunity
Competition in Home Entertainment System Source: WikiInvest.com
Alliances : Amazon formed alliances with many portals, internet search engines and Internet Service Providers (ISP’s)
Acquisitions : The first acquisition started in 1998 from Bookpages ( one of the largest online bookstores in the United Kingdom ), Telebook ( operating through its ABC Bücherdienst subsidiary, was Germany’s number one online bookstore ) and Internet Movie Database (largest repository for information on movies and television) on April 27, 1998. Recent acquisition was in August 2008 AbeBooks,
“ Amazon is not merely a store, but an immense repository of facts”
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