Biography of a giant - Amazon.com

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As part of a college assignment, had made this presentation. The theme was Marketing Strategies, learning what was done right by a successful company.

As part of a college assignment, had made this presentation. The theme was Marketing Strategies, learning what was done right by a successful company.

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  • Amazon.com company time line http://www.xtimeline.com/timeline/History-of-amazon-com
  • - Dec 1999, Time magazine named Bezos "Person of the Year," calling him the "king of cybercommerce." - Jan 2000, company fired 150 workers, mostly employees at its Seattle HQ - Amazon reported a loss of $323 million for the holiday fourth quarter 99-2000 - summer of 2000, Amazon's stock price had dropped by more than two-thirds - "One much publicized report by Lehman Brothers warned investors that the company might run out of cash and advised them to avoid its stock" - Early 2001 -- when Amazon reported a whopping fiscal loss of $1.4 billion
  • Amazon transformed itself from a specialty retailer into an online shopping portal, taking a cue from auctioneer eBay, which set itself up as a mediator between buyer and seller. It started selling products from companies such as Toys "R" Us and Target on its Web site. It added merchandise from smaller retailers in its zShops. And it competed directly with eBay through its Amazon Auctions. Most recently, Amazon launched product categories with merchandise from other retailers. Its apparel store, for instance, debuted in the fall of 2002 stocked with underwear, sweaters and jeans from companies such as Nordstrom and Gap. Although Amazon lists the merchandise on its Web site, it does not actually take control of the inventory; the individual vendors are responsible for fulfilling their orders. Amazon, however, receives a cut from the sales. Amazon's sales from third-party vendors are still a small percentage of its total revenue, but the margins are higher.
  • http://www.kokogiak.com/gedankengang/2004/07/amazoncom-logo-timeline.html
  • Amazon Kindle is a portable e-book reader. More precisely, it is a software, hardware and network platform developed by Amazon.com that utilizes wireless connectivity to enable users to shop for, download, browse, and read e-books, newspapers, magazines, blogs, and other digital media in some countries. About the different version of kindles http://gdgt.com/amazon/kindle/ Amazon.com got outside the web browser in 2007 and offered its customers a way to purchase books through its very own making: an e-book reader specially designed by the online retailer. Since available in 2007, a new version has been announced and Amazon continues to expand the services and products available to current and future Kindle owners.
  • * Over the past three months, for every 100 hardcover books Amazon has sold, it has sold 143 Kindle books. In its Kindle update, Amazon did not offer any comparison between the sales of paperbacks and e-books. * Over the last 30 days, for every 100 hardcover books Amazon.com has sold, it has sold 180 Kindle books. * Author James Patterson had sold 1.14 million e-books to date. Of those, 867,881 were Kindle books. * Five authors—Charlaine Harris, Stieg Larsson, Stephenie Meyer, James Patterson, and Nora Roberts—have each sold more than 500,000 Kindle books. * The U.S. Kindle store now has more than 630,000 books available, including new releases and 106 of 110 New York Times best sellers. * About 510,000 books available for Kindle are priced at $9.99 or less, including 75 New York Times best sellers. * Over 1.8 million free, out-of-copyright, pre-1923 books are also available to read on Kindle.
  • The Amazon Web Services (AWS) are a collection of remote computing services (also called web services) that together make up a cloud computing platform, offered over the Internet by Amazon.com. The most central and well-known of these services are Amazon EC2 and Amazon S3. Amazon Web Services provide online services for other web sites or client-side applications. Most of these services are not exposed directly to end users, but instead offer functionality that other developers can use. In June 2007, Amazon claimed that more than 330,000 developers had signed up to use
  • From jeffs blog http://aws.typepad.com/aws/2008/05/lots-of-bits.html

Transcript

  • 1. Biography of a Giant A presentation in Marketing Strategy
  • 2. A – Z on a .com
    • Founded in 1994 by Jeff Bezos
    • 3. Launched in 1995
    • 4. Online bookstore and more...
    • 5. First major companies to do e-commerce
  • 6. Did you know that... The original name of Amazon.com was Cadabra.com
  • 7. Startup phase
    • At 30, already VP of
    • 8. Quit his job, to start an Internet company
    • 9. Aggressive growth prospects ( 2300% )
    • 10. Tom Alburg invested $100,000 (seed capital)
  • 11. And sell what? “Bezos drew up a list of 20 products that could be sold on the Internet”
    • Finally selected Books with 2000 titles in stock
  • 16. Seattle HQ “An Online company with its core competency being Offline” Seattle because...
    • Large high-tech work force
    • 17. Proximity to a large book distribution center
  • 18. Company Expansion 1997, IPO announced
    • Fund used to:
        • Broaden the company
        • 19. Improve the product
        • 20. Distribution capabilities
    • 70% expansion in the Seattle HQ
    • 21. New office in east coast
    “reduce delivery with east coast office publisher and customers”
  • 22. Did you know that... Douglas Hofstadter 's book holds the privilege of being the first sold book on Amazon.com
  • 23. Reseller Model The Associate Program was also launched in 1997
    • Webmasters could refer a book sale to Amazon
    • 24. Made 3-8% on book sale
    • 25. Amazon partnered with two US biggies
    • 26. Later partnerships including
  • 27. Product Expansion The Amazon Advantage program
    • Sell your consignment @ 55% discount
    • 28. Yearly membership fee of $29.95
    Amazon stocks, manages, delivers and at the end pays you for every book
  • 29. Did you know that... A glitch in Amazon.com's programming allowed writers to criticize their own works favorably on the site.
  • 30. Product Expansion(cont.) Amazon kids
    • Catering to site demographics
    • 31. 100K titles for teens and kids
    Amazon music
    • 1998 also launched the music section with 125K titles
    • 32. Searchable by artist, song title, label
    • 33. Hear before buying (225K sound clips)
  • 34. Online bubble burst
    • Jan 2000, company fired 150 workers
    • 35. Reported a loss of $323 million for fourth quarter '99-2000
    • 36. Summer of 2000, stock price dropped substantially
    • 37. Early 2001, Amazon reported a whopping fiscal loss of $1.4 billion
    “ Lehman Brothers warned investors that the company might run out of cash and advised them to avoid its stock”
  • 38. The Change
    • Cut expenses and restructure business model
    • 39. Laying off 1,300 workers(about 15% work force)
    • 40. Closing two warehouses
    • 41. Shutting down a Seattle customer-service center
    “Bezos followed with a memo calling for the company to get the crap out and stop selling products that weren't profitable.”
  • 42. The Change (cont.)
    • From specialty retailer into an online shopping portal
    • 43. Adopted eBay's auction model
    • 44. Selling merchandise from other retailers (apparel, etc)
    • 45. Does not actually take control of the inventory
    "The more things they can sell to (customers) and not do the dirty work, the better the business grows," said Kate Delhagen, a retail analyst with Forrester Research.
  • 46. Website over the years
  • 47. Branding - reBranding
  • 48. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 1998
    • The biggest repository for information about movies and television
    • 49. Strengthening their plans to launch movies on Amazon portal
  • 50. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 1999
    • Every Amazon member gets a free first aid kit
    • 51. Acquired 46% of Drugstore.com for $44 Million
    • 52. Entry to the Pharmacy market segment
  • 53. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 1999
    • Access to many technology patents
    • 54. A ton of demographics information
    • 55. Opportunity for behavioral targetting
  • 56. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2000
    • A 30 Million investment in WineShopper
    • 57. Access to 550 wineries in 45 States
    • 58. Reaching 85% of USA population
  • 59. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2004
    • A web retailer in China, now Amazon china
    • 60. Purchased for $75 Million
    • 61. Caters mainly to books, music, video
  • 62. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2006
    • Makers of open-source s/w used in wikipedia.org
    • 63. Invested in Wikia inc. series B financing
    • 64. Focus on User content driven development
  • 65. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2008
    • Bought the online fabric store (amount undisclosed)
    • 66. Custom measures and cut fabric
    • 67. More to the Amazon catelog
  • 68. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2009
    • An Online cooking encyclopedia
    • 69. Untapped channel to up-sell F&B
    • 70. Strengthen Amazon in another segment
  • 71. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2009
    • Image recognition technology
    • 72. Most popular applications for iPhones and Android phones
    • 73. Gives image searching to Amazon mobile users
  • 74. Acquisitions “All our acquisition are specifically to gain technological edge or market-share” Year: 2009
    • Acquisition worth $1.2 Billion
    • 75. Biggest shoe retailer online
    • 76. Core competency Logistics & Supply Chain
  • 77.  
  • 78. Whats the strategy now?
    • Plateauing growth!!
  • 79. Line Extension The Kindle
      • Paper like display quality
      • 80. Books, Newspapers, Magazine
      • 81. Adjustable font
      • 82. Huge battery life
  • 83. Selling more e-books
    • In 2010, for every 100 hardcover books Amazon sold 143 Kindle books
    • 84. The U.S. Kindle store now has more than 630,000 books available
    • 85. About 510,000 books available for Kindle are priced at $9.99 or less
    • 86. Over 1.8 million free , out-of-copyright, pre-1923 books are also available to read on Kindle
  • 87. Shift of focus
    • AWS (Amazon Web Services)
    • 88. Mechanical Turks (Human Intelligence)
  • 89. Diversification
    • From e-retailing to web services
      • E-retailing is Retailing
      • 90. Gap in the Current model
  • 91. AWS offering
    • Compute power, storage, and other services
    • 92. Platform or programming model flexibility
    • 93. Ton of benefits
      • Pay as you go model
      • 94. Scalable
      • 95. Comprehensive eco-system
      • 96. Reliable – the Dig effect
  • 97. AWS usage growth
    • Exponential growth
  • 98. Who else use AWS
    • Every major educational institute
  • 99. Diversification (cont.) “Amazon, from web services to human intelligence”
    • Issues doing it recruiting in-house
  • 102. Mechanical Turks
    • Amazon take 10% project fee
    • 103. Pay only for what you use
    • 104. A global, on-demand, 24 x 7 workforce
  • 105.