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![Warehouse Location
[Fulfillment Centers]
Ahmedabad, Hyderabad, Chennai,
Bangalore, Mumbai, Delhi, Kolkata,
Nagpur, Pune
Human Resource
Management
Diverse Culture, Various Employee Benefit
- Health, Employee Assistance, Stock
Technology
Development
Analytics
(e.g. Junglee.com)
VALUE CHAIN ANALYSIS
Amazon India
Support Activities](https://image.slidesharecdn.com/amazonfinaldraft1-160504133403/85/Amazon-strategy-management-presentation-competitor-analysis-49-320.jpg)
Uploaded byDhaval Vasani
Amazon strategy management presentation competitor analysis
The document discusses the e-commerce market in India and Amazon's strategy for competing in this space. It notes that India has a large young population, rising incomes, and growing internet and smartphone penetration, creating opportunities for e-commerce growth. Amazon sees potential in India's untapped rural market. The document outlines Amazon's vision, mission, international presence, and strategies around positioning, innovation, acquisitions, and responding to PESTEL factors. It analyzes Amazon's strengths, weaknesses, opportunities, and threats, and notes competitive threats from Flipkart, Snapdeal, and other players. Amazon aims to differentiate through its large product selection and customer focus.
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Amazon strategy management presentation competitor analysis
- 1.
- 2. THE INDIAN CONTEXT– UNUSUALLY ENERGETIC! • Nearly 43% Source: Ministry of Statistics & Programme Implementation) Young Population • Rising Disposable Income and Improving Standard of Living • World’s 2nd Largest Mobile Phones User Base • Impressive Gross Domestic Product record Fastest Growing Asian Economy • Increasing Government Expenditure for Rural Development • Internet Penetration through Economical Smartphones (Increased Teledensity from 1.2 in 2012 to 3.8.5 in Feb 2012) (Source: www.trai.gov.in) • Free Basic Internet Service Eg. Internet.org Untapped Rural Market
- 3. Source: https://data.gov.in/catalog/below-poverty-line-india Mobile PhoneInternet User Penetration to rise from 30.1% to 47.4% in 2017 Source: www.statista.com The Net National Income has been showing a continuous growth trend Base Year: 2004-05 Source: https://data.gov.in Decreasing Poverty Line 0 20 40 60 80 100 120 140 160 180 200 NNI NNI
- 4. ON THE FLIPSIDE DemographicTransition Decline in child population of age groups 0-6 years and 7-14 yrs
- 5. E-COMMERCE SYSTEM • OnlineTravel, ticketing, etc – Ticketing for air, rail, bus, movies, events • Online Retail* – Retail products sold through online route • Online Marketplace – Platform where sellers and buyers transact online • Online deals – Deals purchased online, redemption may or may not happen online • Online Portals classified – Include car, job, property and matrimonial portals NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III *Goldman Sachs has projected that India's online retailing market, which is already one of the largest in the world, will expand to $69 billion in 2020 from $23 billion in 2016 - The Economic Times, March 16, 2016
- 6. Founder : JeffBezos Amazon.com, Inc. founded in 5th July 1994. Is an American international electronic commerce company, headquartered in Seattle, Washington, United States Amazon.com started as an online bookstore, but soon diversified, selling DVDs, VHSs, CDs, video and software, video games, electronics, apparel, furniture, food, toys, and jewellery Amazon Kindle e-book reader and the Kindle Fire tablet computer. The 4th most successful start-up company of all time by market capitalization, revenue, growth and cultural impact
- 7. “O U RV I SI ON I S T O B E E ARTH' S MOST CUSTOMER CE NTRI C COMPANY ; T O B U I L D A P L A C E W H E R E P E O P L E C A N C O M E T O F I N D A N D D I S C O V E R A N Y T H I N G T H E Y M I G H T W A N T T O B U Y O N L I N E ”
- 8. “O U RM I S S I O N I S T O L E V E R A G E T E C H N O L O G Y A N D T H E E X P E R T I S E O F I N V A L U A B L E E M P L O Y E E S A N D T O P R O V I D E C U S T O M E R W I T H T H E B E S T S H O P P I N G E X P E R I E N C E O N T H E I N T E R N E T ”
- 9. I t is a r e p r e s e n t a t i o n o f t h e w i d e r a n g e o f i t e m s a v a i l a b l e f o r r e t a i l b y A m a z o n Literally everything from A to Z Y o u m i g h t h a v e n o t i c e s t h e A m a z o n l o g o l o o k s l i k e a s m i l e y f a c e b u t a s e c o n d l o o k s h o w s t h a t t h e a r r o w g o e s f r o m A t o Z
- 10. #100 % Original Products NMIMS- PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III #On-Time Delivery #Friendly Customer Service #Virtually Anything 5PS OF STRATEGY PLAN
- 11. NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III PLAN – CONT’D INTERNATIONAL PRESENCE • Australia • Brazil • Canada • China • France • Germany • Japan • Mexico • Netherlands • Spain • United Kingdom • United States • Italy
- 12. PLOY • International Brand •International Market Expertise • Fulfillment by Amazon • Junglee.com • Kindle – a niche market segment • Acces to nearly 19000 pincodes NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 13. POSITION NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III Books DVDs/Video Downloading Software, Games, Electronics Apparel, Furniture, Food Possibly Anything
- 14. NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III www.amazon.in
- 15. • Innovation sinceInception – Kindle – Amazon Exclusive – Gift a Smile – Self Return – One click pay (yet to be introduced in India) PATTERN NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 16. PERSPECTIVE NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • Mergers and Acquisitions – Emvantage - To ensure the best in class online payment experience – Digital Wallet - Limited access to the customer’s data • Corporate Social Responsibility – Gift A Smile • Customer Engagement and Customer Service – One click pay – Digital wallet -To target refunds
- 17. PESTEL • Political • Economic •Social • Technological • Environmental • Legal NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 18. POLITICAL NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • International policies and polices related to online purchase • Government’s policies, politician’s interests, and the ideologies of several political parties • Regulations are also interfering with online purchases. • Internet providers are advancing which is bringing faster and more affordable internet • Government policies promote competition through telecom liberalization, e-commerce promotion and legislation
- 19. ECONOMIC NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • India Economy is stable since introduction of the industrial reform policies in 1991. • Currency fluctuations • Reductions in industrial licensing, liberalization of foreign capital • Internet retailing Growth between 2006 and 2011, sales rising by 100% • 143 million of these will be in Asia-Pacific
- 20. SOCIAL NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • Any changes in trends impact a business environment • In the world the internet is restricted due to religious and ethical factors • Internet growth rate is outstanding, With internet users increasing every year • Social networks are booming, like Facebook, Twitter • Product category risk and financial risk decrease online shopping
- 21. TECHNOLOGICAL NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • With Amazon being an online retailer, they are forced to find innovated methods to surpass their competitors • Internet access available through mobile device or tablet • India possesses one of the strongest IT sectors in the world, • Price comparing available for consumer is anywhere in the world shopping. • Amazon can offer very competitive prices
- 22. ENVIRONMENTAL NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • Quality of air in India affected by industrialization and urbanization • Amazon is offering cloud storage and cloud computing • Potentially see millions of electronics like hard drives and computer components no longer needed in mass production • Online shopping have less pollution from vehicles • Shipping the products add unnecessary packaging for shipment
- 23. LEGAL NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III • Number of legal changes have been implemented in India • selling overseas need to be aware of international laws • Separate laws depending on the state • selling multimedia over the internet require certain rights to the media. • For e.g. Hollywood fighting sale of digital copies • 100% FDI on E-commerce business
- 24. IN A NUTSHELL • Political, economic, social, technological progress indicates an increasing and attractive market to be exploited by Amazon.com • The Indian markets have shown exceptional growth. The use of internet as a social networking channel has created new opportunities to be exploited, additionally , as environment awareness increased globally , • it is important that Amazon.com’s attractive also suggests that strategies friendly activities. • The global nature of Amazon.com’s activities also suggest that strategies developed should comply with the different legal obligation internationally. NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 25. SWOT ANALYSIS• WellKnown brand with large customer base – Top of the mind RECALL • Diverse product offerings at Low costs • Working with minimum profit & gaining from Economies of scale • Experience of over a decade in online shopping industry internationally • Superior logistics & distribution systems • Operating at Low Profit Margins • Diversification strategy leading to shift of focus from core competences • Criticism for working conditions • Dependence on vendors • Missing touch and feel of products for purchase • Online Security threats • Strong Indian competitors FLIPKART, MYNTRA, SNAPDEAL • Regional Low cost retailers • Flexible FDI policies enabling possible entries of other players like Walmart, Alibaba, etc • Customer Loyalty. • Indian retails industry worth is huge with still growing potential • Acquiring local small business enterprises, enabling expansion • Opening physicals stores • Tie-ups with major players of untapped Markets • Expand into more product segments – Online Movies, streaming etc. NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 26. KEY STRATEGIC CHALLENGES Findnew areas of Growth How to maintain the long term profitability NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 27. CORPORATE LEVEL STRATEGY OTHER BUSINESS’SBY AMAZON: • Amazon Web Services • Kindle • Amazon Now • Amazon Businesses • MYHABIT ACQUISITIONS: • Junglee.com • Look.com • Audible • Diapers.com • Shopbop • DPReview • Yoyo.com • IMDb
- 28. NMIMS - PTMBA| STRATEGIC MANAGEMENT | TRIMESTER III
- 29. BUSINESS LEVEL STRATEGY OVERALLCOST LEADERSHIP COST FOCUS DIFFERENTIATION FOCUS DIFFERENTIATION HIGH COSTLOW COST B R O A D N A R R O W COMPETITIVESCOPE COMPETITIVE ADVANTAGE
- 30. PROFITABILITY STRATEGY Short Term Profitabilityis low due to Large Capital investments Long Term Profitability is High due to high growth market NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
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- 32. HOW DOES AMAZONEXPLOIT THE INDUSTRY STRUCTURE ? • By managing logistics efficiently • 100% original products • Customer Satisfaction • Speedy Delivery COMPETITIVE ADVANTAGE NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 33. PORTERS 5 FORCES Competitive Rivalry Potential Entrants Buyers Substitutes Suppliers Threatof Entry Bargaining Power Threat of Substitutes Bargaining Power
- 34. Threat of NewEntrants : LOW • Virtually impossible to reach the magnitude of inventory and status that Amazon maintains. • Difficult for a start-up to raise enough capital to compete with Amazon. • Economies of Scale Threat of Substitutes : HIGH • Lot of Physical Stores Available • Most companies/brand have a online store as well • The physical stores and websites may not offer the same quality of customer service and convenience to its customers. NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 35. Bargaining Power ofBuyers : HIGH • Indian Customers are price sensitive, less brand loyalty • They will easily switch to a competitor if he offers a lower price Bargaining power of Suppliers : Medium • Inventory can be sourced from multiple suppliers • Amazon buys in bulk and hence can use their influence over smaller suppliers. • Suppliers offer similar sales on their websites as well NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 36. Competitive Rivalry :HIGH • With similar offerings there are 2 major competitors Flipkart and Snapdeal • Several competitors in terms of products offered Industry Attractiveness is Medium : HIGH NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 37. COMPETITOR ANALYSIS C om p e t i t o r i d e n t i f i c a t i o n KEY COMPETITORS • Flipkart • Snapdeal • eBay • Jabong • All Brick and mortar stores
- 38. COMPETITOR ANALYSIS Source: http://economictimes.indiatimes.com LOSSIN MARKET SHARE IN 2015
- 39. COMPETITOR ANALYSIS Source: http://economictimes.indiatimes.com AMAZONPIPS SNAPDEAL TO BECOME INDIA'S 2ND LARGEST ONLINE MARKETPLACE AFTER FLIPKART
- 40. 0 5 10 15 20 25 30 35 40 45 Flipkart Amazon Snapdeal Others Amazon Vs FlipkartVs Others Share of Shipment Market Share Order Perday COMPETITOR ANALYSIS Source: http://economictimes.indiatimes.com
- 41. Amazon 32% Flipkart 24% HomeShop18 24% BookAdda 0% Infibeam 12% Crossword 8% DISCOUNT OFFERED UPTO AmazonFlipkart HomeShop18 BookAdda Infibeam Crossword COMPETITOR ANALYSIS Source: http://trak.in
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- 44. COMPETITOR ANALYSIS • TheLargest Competitor as of now in India is Flipkart with Highest score • Flipkart has 80% share of the online book market in India • Flipkart now has a wide reach in the Indian market and the delivery time is just 2 days and sometime next day • Flipkart 75 million registered users • Other Competitors includes – Ebay.in, Snapdeal, Jabong, Homeshop18 NMIMS - PTMBA | STRATEGIC MANAGEMENT | TRIMESTER III
- 45. 0 10 20 30 40 50 60 70 80 90 Mobile Tablets LaptopsCamera Brands : Catalogue Size for Consumer Electronics Amazon Flipkart COMPETITOR ANALYSIS Source: http://www.nextbigwhat.com
- 46. 0 100 200 300 400 500 600 700 800 900 1000 Mobile Tablets LaptopsCamera No. of Products: Catalogue Size for Consumer Electronics Amazon Flipkart COMPETITOR ANALYSIS Source: http://www.nextbigwhat.com
- 47. 0 50 100 150 200 250 Who Has BetterLifestyle Products Amazon Flipkart COMPETITOR ANALYSIS Source: http://www.nextbigwhat.com
- 48. 0 200 400 600 800 1000 1200 1400 1600 1800 Mobiles Laptops TabletsCameras Total Amazon SKUs Vs Flipkart SKUs Amazon Flipkart COMPETITOR ANALYSIS Source: http://www.nextbigwhat.com
- 49. Warehouse Location [Fulfillment Centers] Ahmedabad,Hyderabad, Chennai, Bangalore, Mumbai, Delhi, Kolkata, Nagpur, Pune Human Resource Management Diverse Culture, Various Employee Benefit - Health, Employee Assistance, Stock Technology Development Analytics (e.g. Junglee.com) VALUE CHAIN ANALYSIS Amazon India Support Activities
- 50. Inbound Logistics • Suppliers canarrange drop-in their products • Or Schedule a Pick-up Inventory Management • Single unit to entire inventory • ‘Pay as you go’ Packaging • Buys packaging material from Dynaflex, a Vadodara based company Outbound Logistics • Delivery of products to customer • Refunds of products • Amazon Transportation Services Private Limited Post Sales Services • customer service department • Returns Primary Activities
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- 52. India’s largest onlinemarket place
- 53. Broughtabout a changein Shopping Experience
- 54. Bliss for allthe Readers !
- 56. R U SH A B H S H R O F F 4 5 J A T I N S I N G H 4 7 K R U N A L T H A K K A R 4 9 A M Y T H A K K E R 5 0 D E V E N D R A S I N G H 4 6 D H A V A L V A S A N I 5 2 V I R E S H V E N N A 5 3
Editor's Notes
- #4 80% growth in Net National Income
- #5 According to the census 2011 data, India’s demography is witnessing a new trend of declining child population of the age groups 0-6 years and 7-14 years. A drop in the proportion of population in the lower age groups as compared to 2001 census shows declining fertility rates in India and baby boom from the mid 1990s. This is the result of successful family planning initiatives and high life expectancy rates. Hence, we see the advent of a demographic transition.
- #38 Competitor analysis is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.
- #39 Snapdeal and Amazon India lost market share in 2015, according to the research arm of Morgan Stanley, as online shopping options grew rapidly in India and established etailers cut back on discounts. But Flipkart managed to marginally increase its share and the Big Three, despite a fall in combined market share, accounted for more than 80% of the total market. India's online shopping market will grow in a 'more democratic' manner.
- #40 Flipkart's share of shipments fell to 37% in March from 43% in the same month of 2015, and Snapdeal's fell to 14-15% from 19%, Amazon India's unit market share surged to an estimated 21-24% from 14% share of shipments. Amazon is very rapidly taking market share from companies like Snapdeal and other smaller players.
- #45 comparing their catalogues for different categories, examine common products offered by them, better seller in terms of price, to see how they stand against each other. considered 4 categories under consumer electronics Only new products that are under manufacturer warranty and available as on 4th Week of April 2014 is covered in this report. Flipkart has 1706 SKUs in stock under these four categories whereas Amazon has 1535 SKUs in stock. Flipkart has 4172 offers for 1706 SKUs whereas Amazon has 2244 offers under 1535 SKUs. Each SKU can have multiple offers under it so for standardization we have considered different color variants of the same product as single SKU.