Amazon japan for presentation


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amazon in Japan
from Mike Peng 2009
Our IB class

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Amazon japan for presentation

  1. 1. Amazon In Japan<br />TEAM MEMBERS:<br />Yurong Liu <br />Melody Haddock<br />Van Huynh<br />Vanessa Lopez<br />UsoroItata<br />
  2. 2. How Amazon leveraged its capabilities to succeed in Japan?<br />
  3. 3. Agenda<br /><ul><li>Company Background
  4. 4. Critical Issues
  5. 5. Strategic Analysis
  6. 6. Recommendations
  7. 7. Questions & Answers </li></li></ul><li>Company Background<br /><ul><li>Founded by Jeff Bezos
  8. 8. Time magazine's Person of the Year in 1999.
  9. 9. U.S. News & World Report as one of America's Best Leaders in 2008</li></ul>It was named after the great river in Brazil nourishing the most abundant live species, because it supply the most abundant books and other gadgets online.<br />Amazon River<br />In Brazil<br />
  10. 10. Overview of<br /> Old days<br /><ul><li> Major business is selling books online
  11. 11. Competing with traditional bookstores, such as Barnes & Noble, Inc.</li></ul>Today<br /><ul><li> Selling diversified products, including </li></ul>DVDs, CDs, MP3 downloads, computer<br />software, video games, furniture, food, etc.<br /><ul><li> Competitors: Barnes & Noble, eBay Inc. </li></ul>and Wal-Mart<br />
  12. 12. Strategic Analysis<br /> has established separate websites in Canada, the United Kingdom, Germany, France, Japan, and China<br /> was established in 2007<br /><ul><li> Invested $8 billion
  13. 13. Setback due to Saihan system
  14. 14. Come back with different strategy</li></li></ul><li>Critical Issues<br />Japans Internet Usage<br />Japanese are the pioneers of internet and mobile technology<br />Ranked 3rd in the world Japan has 93.4 million internet users<br />Competitors in Japan Market<br />Softbank - broadband company , sole provider of the iPhone and iPad in Japan<br />Rakuten – broadband company, recently bought <br />B2B2C company without a warehousing function<br />
  15. 15. Critical issues of doing business in Japan<br />Japan appears as a lucrative market as <br />Japanese are voracious readers<br />Less concentrated than American market<br />Most Japanese bookstores are brick-and-mortar forms<br />But Japan poses:<br />Legal hurdle<br />SaihanbaiKakakuijiSeido system fixing book prices: outlaw price competition<br />Directly attack Amazon’s strategic positioning as low-price online book store<br />Cultural roadblock<br /> Fear of fraud refraining internet credit card purchases in Japan<br /> Hard to facilitate online purchases<br />
  16. 16. Strategic Analysis (continued)<br />Physical <br />Headquarters in Seattle WA<br />Extensive distribution channels<br />Strategic relationship with major logistic agencies and local shipping agencies<br />Organizational<br />Completely customer centric company <br />“… to build a place where people can come to find and discover anything they might want to buy online. “<br />Technological<br />Cutting-edge technologies (IT platforms, CRM softwares, databases)<br />
  17. 17. Strategic Analysis (continued)<br /><ul><li>Human:</li></ul>“Work hard, Have fun, Make history”<br />Innovation (Amazon’s key leveraging capabilities in Japan)<br />Innovate or Evaporate !!!!!<br />Overcome competition: <br />Introduce new products Amazon Kindle DX, Amazon Scan search, Japan Jewelry Store, etc… <br />Offer point reward systems and free shipping<br />Maintain “Amazon marketplace”<br />
  18. 18. Strategic Analysis cont<br />Overcome legal barriers - Saihan: <br />Switch strategies from books to consumers products (60%)<br />Overcome cultural barriers: <br />Accept ATM payment (unique in Amazon Japan subsidiary)<br />Excerpt reading” to suite the taste of Japanese’s tachiyomicustom.<br />Reputational: <br />No 1 online retailing entity in Japan 2009. <br />
  19. 19. SWOTANALYSIS<br /><ul><li>STRENGTHS</li></ul>Well-built global brand name<br />Cutting-edge technologies<br />Strong financial capabilities<br />Good corporate culture and customer service<br />A highly innovative organization with effective research teams<br />Extensive network of business supporters (distribution channels, financial entities)<br />WEAKNESSES<br />Very strong competitors (i.e. Rakuten Japan) <br />World fuel price escalations<br />
  20. 20. SWOT ANALYSIS<br /><ul><li>OPPORTUNITIES</li></ul>Online retailing is on the growth, not only in Japan but also worldwide <br />Customer’s technology awareness is enhanced.<br />Many opportunities for acquisitions of new business or business partnership especially profitable brick-and-mortal firms in Japan.<br />THREATS<br />Brand dilution (inherent risk upon diversifying product lines)<br />Merely dependent on technology maintenance and development<br />
  21. 21. Recommendations<br />To sustain its growth in Japan, Amazon needs to:<br /><ul><li>Continuously do market research</li></ul>Maintain and improve its distribution channels<br />Build up a trustworthy relationship with local authorities<br />
  22. 22. Conclusion<br /><ul><li> is on the rise
  23. 23. Critical Issues
  24. 24. Financial Capabilities
  25. 25. Good Corporate Culture
  26. 26. Has room for expansion</li></ul><br />
  27. 27. Thank you for your attention!<br />Any Questions or comments?<br />