Amazon Case Study

1. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZON CASE STUDY Heiko Hasenmaile Matthias Hönig Simon Keller Daniel Marz Mona Milite Benjamin Nonnenmann Fabian Schmidt Rebecca Spinner David Strohm Mona Werz Advanced Master Seminar in “Logistic Case Studies” at the University of Applied Sciences Konstanz Konstanz August 2016

2. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PROJECT SUMMARY & CONFIDENTIALITY  This document is the result of a common student project as part of our advanced Master Seminar in “Logistic Case Studies” at the University of Applied Sciences Konstanz, Department of Business Administration  The project conducted by Prof. Dr. Michael C. Hadamitzky, Center of Supply Chain Management and Logistics comprehends an external analysis of AMAZON.COM - the pioneer of disruption and digitalization  The project gave us the opportunity to examine the latest developments in Value Chain Management and digital innovation  All sources and quotes were collected according to common citation systems and rules  We ensure that we present the work to our best knowledge and belief, of its originality being and the result of own research and investigations, except as acknowledged, and has not been submitted, either in part or whole, for a degree at this or any other University. Formulations and ideas taken from other sources are cited as such. The work has not been published, yet. 1

3. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL TEAM MEMBERS & CONTACT The Team of the advanced master seminar looks forward to interesting discussions about our topics 2 Subject Contact 1 Heiko Hasenmaile Fabian Schmidt Xing: https://www.xing.com/profile/Heiko_Hasenmaile Xing: https://www.xing.com/profile/Fabian_Schmidt88 2 Matthias Hönig Daniel Marz Xing: https://www.xing.com/profile/Matthias_Hoenig7 Xing: https://www.xing.com/profile/Daniel_Marz2 3 Rebecca Spinner David Strohm Xing: https://www.xing.com/profile/Rebecca_Spinner Xing: https://www.xing.com/profile/David_Strohm2 4 Mona Milite Mona Werz Xing: https://www.xing.com/profile/Mona_Milite Xing: https://www.xing.com/profile/Mona_Werz?sc_o=mxb_p 5 Simon Keller Benjamin Nonnenmann Email: SimonMartin.Keller@web.de Email: benjamin.nonnenmann@hotmail.de

4. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL CONTENT Jeff Bezos - Pioneer in Digital Excellence Amazon Strategy Products and Service Technology and Innovation Key Findings in Financials 3 1 2 4-17 18-35 36-81 82-103 104-129 3 4 5

5. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Jeff Bezos - Pioneer in Digital Excellence Heiko Hasenmaile (B.A.) & Fabian Schmidt (B.A.) Picture: https://inc42.com/wp-content/uploads/2016/04/amazon.jpg “Entrepreneurs must be willing to be misunderstood for long periods of time“ 4

6. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL KEY FINDINGS  Even as a child, Jeff Bezos displayed a remarkable mechanical aptitude  Jeff Bezos had the great teachers, but his most important one was his grandfather  Jeff Bezos’ motto: Get big fast  Amazon perfectly understood the need to provide the customers exactly what they want  His ambition is illimitable – not only related to Amazon. He also wants to reinvent the media and to draw new limits of the science Jeff Bezos – a pioneer in digital excellence 5

7. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Birth in Albuquerque Degree in Electrical Engineering and Computer Science at the university of Princeton in New Jersey After his study graduation he worked as investment banker at Bankers Trust and then at D.E. Shaw Foundation of Amazon, as a book seller Number 4 on Forbes‘ list with a property of about 54 billion Dollar JEFF BEZOS - MILESTONES IN HIS CURRICULUM VITA Aged 30 years, Jeff Bezos founded AMAZON 6 1986 until 1994 1964 1994 2016 Source: http://www.forbes.com/forbes-400/gallery/jeff-bezos Stone, Brad (2013) p. 53 seq. https://www.munzinger.de/search/portrait/Jeff+Bezos/0/23015.html

8. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Jeff Bezos was born on January 12, 1964, in Albuquerque, New Mexico Jeff Bezos was born on January 12, 1964, in Albuquerque, New Mexico Teenage mother: Jacklyn Gise Jorgensen Biological father: Ted Jorgensen Jeff‘s mother re-married a Cuban immigrant, Mike Bezos Jeff‘s grandfather: regional director of the Atomic Energy Commission in Albuquerque “Your education is always yours - once you have it, it cannot be taken away.” Mike Bezos 7 Source: www.achievement.org/autodoc/page/bez0bio-1 s.wsj.net/public/resources/MWimages/MW-CI377_BezosJ_MD_20140618140824.jpg MIKE AND JACKLYN BEZOS – FAMILY ROOTS

9. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL JEFF BEZOS – FAMILY According to businessinsider.com Jeff Bezos leaves nothing to chance, even with the process used to find his wife. He trusts in his analytical skills Jeff Bezo’s motto: “Life's too short to hang out with people who aren't resourceful.” Jeff Bezos Jeff established a process – the "women flow" – to help him with a big life goal: finding a mate In 1993 Jeff Bezos married his wife MacKenzie Tuttle, an American novelist Jeff and MacKenzie Bezos have four children Source: www.businessinsider.com/amazon-billionaire-jeff-bezoss-life-story-2013-8?op=1&IR=T Stone, Brad (2013) p. 29 http://i.huffpost.com/gen/1445117/images/o-AMAZON-CEO-WIFE-MACKENZIE-BEZOS-facebook.jpg 8

10. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Source: http://www.bloomberg.com/news/articles/2015-08-18/jeff-bezos-told-princeton-grads-kindness-matters-more-than-intelligence http://sz-magazin.sueddeutsche.de/texte/anzeigen/44019/Captain-Future http://www.achievement.org/achievers/bez0/photos/bez0-006a.gif JEFF BEZOS – MOST INFLUENTIAL PERSON Jeff Bezos had the great teachers, but his most important was his grandfather “Jeff, one day you'll understand that it's harder to be kind than clever.” Lawrence Preston Gise Thanks to his grandfather, Jeff learned how to make something out of nothing. All of his learning was done by simply observing. Jeff spent his summers on his grandfather’s ranch. There were very few resources accessible from the ranch, forcing them to be self-sufficient. If something broke, they fix it themselves. They repaired tractors, windmills, and even veterinary care for their animals. Jeff always observed his grandfather so that he would be able to do the same himself. Jeff hated that his grandmother liked to smoke in the car. Through a few calculations, he figured out that she was smoking away nine years of her life. The results brought her to tears. After this incident, his grandfather told him that he would one day understand that it is harder to be kind than clever 9 Jeff Bezos at his grandfather’s ranch in Cotulla

11. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Source: Stone, Brad (2013) p. 53 seq. : http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg Quellen JEFF BEZOS – “JEFFISMEN” His maxims were marked as Jeffismen. Few of them exist longer than a decade. “In any readjustment, person in question should raise the level for the next little higher, so that the general level of talent pools rises steadily.“ As the orders reached $ 5,000 a day for the first time and his colleague Lovejoy wanted to throw a party. But Bezos immediately shot down the idea. “We still have many milestones ahead of us and this is not the way I want to run this company.“ His employees should work disquietingly to create a sustainable company and to decrease the value of their personal shares Whoever made the mistake of talking about his desire for a harmonious balance between work and family life was eliminated at the outset Jeff Bezos 10

12. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL JEFF BEZOS – CHARACTERICS An innovative and polarizing firebrand „To me Amazon is a story of a brilliant founder who personally drove the vision.“ Eric Schmidt, former Chairman of Google According to many employees, Jeff Bezos is a very difficult boss. Despite his charming laughter and cheerful appearance, he is known for his angry outbursts that would leave his employees terrified Jeff Bezos is a manager with never ending ideas who also can become very irate if they didn’t achieve his benchmarks Jeff Bezos communicates very clever about his company. He often keeps his thoughts and agenda secret. Conferences and interviews are a rarety. Source: Stone, Brad (2013) p.16 sqq. www.businessinsider.com/jeff-bezos-inspiring-business-quotes-2013-10?IR=T 11

13. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL JEFF BEZOS – VISION Get big fast „Jeff is such communicative as clever. He is the typical technical founder, who is interested in the last detail more than any other person.“ Eric Schmidt, former Chairman of Google ”You can work long, hard and with your brain, and at Amazon you cannot choose two out of three.” With the obsession of an anankastic personality, he is concentrating on the costumer satisfaction Jeff Bezos The larger the company, the greater the discount, the better the distribution. The company that realizes this from the starts has a higher chance of succeeding in the future. This kind of advantage can lead to superior customer service Source: Stone, Brad (2013) p.13 sqq., p.59 www.wiwo.de/images/amazon-chef-kaempft-gegen-image-als-reiner-buchhaendler/7812328/2-format2101.jpg Speech Jeff Bezos: https://www.youtube.com/watch?v=YlgkfOr_GLY 12

14. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Source: www.forbes.com/sites/petercohan/2013/09/04/how-you-can-use-the-three-big-ideas-behind-amazons-success/#2b3c134095df JEFF BEZOS – 3 BIG IDEAS Amazon's success is based on 3 fundamental ideas Jeff Bezos “We've had three big ideas at Amazon that we've stuck with for 18 years, and they're the reason we're successful: Put the customer first. Invent. And be patient.” New innovations secure the long-term existence of the company Customer satisfaction is the top prioritySuccess Invent Put the customer first Be patient 13

15. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL JEFF BEZOS – AWARDS During his career Jeff Bezos received many awards „A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” 1999: Time magazine chose him for Person of the Year 2012: Fortune named him Businessperson of the Year 2012: Bezos was elected to the American Academy of Arts and Sciences. 2014: He was elected at the World Congress of the International Trade Union Confederation for "Worst head of the World" 2015: Juniper Research chose him number 8 in the Top Tech Leader 2015 2008: One of the America's best leaders selected by U.S. News & World Report Source: www.achievement.org/autodoc/page/bez0bio-1 Jeff Bezos 14

16. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL JEFF BEZOS – PUBLIC RELATIONS Jeff Bezos is a welcome interviewee in journals Source: www.achievement.org/achievers/bez0/large/bez0-004.jpg http://www.achievement.org/achievers/bez0/large/bez0-008.jpg http://blogs-images.forbes.com/georgeanders/files/2014/09/0402_amazon-jeff-bezos-cover-042312_400x52911.jpg http://www.flashesandflames.com/wp-content/uploads/2015/10/0646covdc.gif http://static3.uk.businessinsider.com/image/56977fe0e6183e3f798b775b-480/jeff-bezos-fortune-india.jpg 15

17. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL JEFF BEZOS - FURTHER PROJECTS His ambition is illimitable – not only related to Amazon. He also wants to regenerate the media and to draw new limits of the science "There'll always be serendipity involved in discovery." In 2000 he founded his own aerospace company Blue Origin August 2013, in a really surprising deal for the media industry, he bought The Washington Post for $250 million Project: The 10.000 year clock Jeff Bezos Source: Stone, Brad (2013) p.14 www.washingtonpost.com/pb/resources/img/thewashingtonpost-white-2x.png www.space.com/images/i/000/054/508/original/jeff-bezos-blue-origin-launch-pad.jpg www.nadernazemi.wordpress.com/tag/clock-of-the-long-now/ 16

18. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  Academy of Achievement (2013): Jeff Bezos Biography Founder and CEO, Amazon.com, in: www.achievement.org/autodoc/page/bez0bio-1, last access 10.06.2016.  Bloomberg (n.d.): What Jeff Bezos Really Told Princeton Grads About Kindness, in: http://www.bloomberg.com/news/articles/2015-08-18/jeff-bezos-told-princeton-grads-kindness-matters-more-than- intelligence, last access 19.06.2016.  Business Insinder (2013):The Life And Awesomeness Of Jeff Bezos, in: www.businessinsider.com/amazon-billionaire- jeff-bezoss-life-story-2013-8?op=1&IR=T, last access 10.06.2016  Business Insinder (n.d.):14 Jeff Bezos Quotes That Show Why Amazon's Boss Is A Total Genius, in: http://www.businessinsider.com/jeff-bezos-inspiring-business-quotes-2013-10?IR=T, last access 10.06.2016  Forbes (2013), How You Can Use The Three Big Ideas Behind Amazon's Success, in: http://www.forbes.com/sites/petercohan/2013/09/04/how-you-can-use-the-three-big-ideas-behind-amazons- success/#6559fb5d95df, last access 10.06.2016  Munzinger (2014), Jeff Bezos, in: https://www.munzinger.de/search/portrait/Jeff+Bezos/0/23015.html, last access 07.06.2016  Stone, Brad (2013): Der Allesverkäufer, Campus Verlag GmbH: Frankfurt am Main.  Süddeutsche Zeitung (2015): Captain Future, in: http://sz-magazin.sueddeutsche.de/texte/anzeigen/44019/Captain- Future, last access 19.06.2016 17

19. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Amazon Strategy Matthias Hönig (B.A.) & Daniel Marz (B.A.) Picture: http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg (date: 06.06.2016) 18 “What we need to do is always lean into the future; when the world changes around you and when it changes against you - what used to be a tail wind is now a head wind - you have to lean into that and figure out what to do because complaining isn't a strategy.”

20. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL KEY FINDINGS  Disruption is a main strategy of amazon  Growth is the basic of amazons strategy  Amazon is one of the biggest service provider (Amazon Web Services)  Acquisitions are necessary to compete, to improve and to acquire new knowledge  Amazon‘s customer focus is tailored to low prices, selection and reliable delivery  Growth achieved through customers, disruption, acquisitions, internationalization and products The ambition is to disrupt existing business models and by generate growth 19

21. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZON – VISION Amazon knew to provide their customers everything what they wanted Source: Stone, Brad (2013) “I can’t imagine that ten years from now customers are going to say: I really love Amazon but I wish their prices were a little higher.” Jeff Bezos low prices convenience large selection from garden products to toys - everything is available quick order and delivery Amazon adjusts their prices continuously 20

22. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZONS GROWTH STRATEGY Source: http://www.samseely.com/blog/amznsupplychain Growth is the basic of amazon‘s strategy 21 Traffic Customer experience Selection GrowthSellers Infrastructure investment Lower cost structure Lower prices Improves efficiency Faster, more reliable delivery

23. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZONS GROWTH STRATEGY The growth strategy in its components Source: Own description Growth Internationalization Disruption Acquisition Competition Improvement Technologies Customer Selection Fast delievery Low prices Products & Service 22

24. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL BUSINESS PATH Amazon is the worlds largest online retailer Source: Max Jallifier , http://de.slideshare.net/MaxJallifier/final-presentation-16443977 Began as one of the first major companies to sell goods over the internet First launched as an Online Book Store Due to success diversified into many other product lines and services Multinational E-Commerce company Worlds largest online retailer 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 In 2003 Amazon passed the $5 billion sales mark – it took Wal- Mart 20 years to achieve this. Amazon has only 13.900 employees (2006), Wal-Mart has 1,9 million employees (2007) 23

25. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL CUSTOMER The customer ist the king – create an experience for him Customer focus Selection low prices fast convenient/ reliable delivery Source: https://www.youtube.com/watch?v=mk0qTPqaFcw&ab_channel=EPCGroup.net Selection available on your screen. Wide product selection  the everything store „We price products competitively.“ „It‘s okay to loose money, if the customers earn trust.“ „We don‘t wanna make our customers pay for our inefficiencies.“ Various price ranges – new and used. Prices revised daily Delievery in shortest possible time „Don´t worry about the competition, worry about the customer.“ 24

26. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL CUSTOMER ACCOUNTS By customer focus amazon reached an enormous increase in customers accounts Source: Own Diagram based on Statista, in http://de.statista.com/statistik/daten/studie/297615/umfrage/anzahl-weltweit-aktiver-kunden-accounts-von-amazon, last access 2016-05-30 1.50 6.20 14.00 20.00 25.00 40.00 34,20 88.00 105.00 130.00 164.00 200.00 237 260 300 0 50 100 150 200 250 300 350 1997 1998 1999 2000 2001 2003 2007 2008 2009 2010 2011 2012 2013 2014 2015 Customeraccountsinmillions 25 + 20³ %

27. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL DISRUPTION STRATEGY Disruption is a main strategy of Amazon Source: http://www.foundingfuel.com/column/new-rules-of-business/disrupt-or-destroy-your-own-business-to-make-it-stronger/ date(06.06.16) „Become your own fiercest competitor and disrupt or destroy your own business before competition does“ In early 2000, Apple was revving under the innovative leadership of Steve Jobs. Jeff Bezos, creator of Amazon, feared Apple might come up with a device that would disrupt its successful online book retail business They were to disrupt Amazon’s own successful bookselling business with an e-book device Kindle is the child of Amazon’s efforts to disrupt its own business before other companies could do it to Amazon. Today, it is an important artillery in Amazon’s product range Conclusion: The lesson for enterprises is to continuously figure out how their business could be disrupted and destroyed, and then implement the solutions into their business before others do. If this strategy seems too risky, simply buy out the competition that has the potential to destabilize your business 26

28. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SUPPLY CHAIN AND BUSINESS MODEL ENHANCEMENT Rising vertical integration Manufacturers/ publishers Inventory/ stocking Packaging Merchandise retrieval Shipment routing FedEx/ UPS Amazon drives Package to Delivery service Consumer Amazon Warehouses – Largely Automatet Manufacturers/ publishers Inventory/ stocking Packaging Merchandise retrieval Shipment routing FedEx/ UPS Suburban consumer Amazon owned supply chain Amazon Boeing 767s Amazon Prime Now Urbann Consumer (live near FC) Domestic manufacturers Inventory/ stocking Packaging Merchandise retrieval Shipment routing Suburban consumer Amazon owned supply chain Amazon Boeing 767s Amazon Prime Now Urbann Consumer (live near FC) Int. manufactors Amazon boats Source:http://www.samseely.com/blog/amznsupplychain (date:06.06.2016) 27

29. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Picture: http://www.businessinsider.com/visualizing-amazons-acquisition-history-2009-7?IR=T 28 Raising budget for aqusitions and investments ACQUISITION 1998 – 2009

30. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL ACQUISITION 1998 – 2004 Acquisitions to improve their retail software services LiveBid Exchange.Com $293M Alexa Accept.Com $250M Back to Basics $101.7M Greenlight.com $25M Greg Manning Auctions $5M Kozmó.com $60M Basis Technology CatalogCity.com $5M Egghead.com $6,1M OurHouse.com Mobipocket Custom Flix Book Surge CDnow 1998 1999 2000 2001 2002 2004 Source: https://www.crunchbase.com/organization/amazon/acquisitions IMDB Telebook $55M Bookpages Junglee $190M PlanetAll.com $55M 29

31. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL ACQUISITION 2005 - 2011 Acquisitions to absorb technologies and employees into Amazon‘s IT operations Joyo.com limited Shopbop TextPayMe wikia Inc. Brilliance Audio Inc. Digital Photography Review Without A Box Audible $300M dpreview Cash Brilliance Audio Fabric.com AbeBooks Shelfari Reflexive Entertainment Touchco Woot $110M Amie Street BuyVIP Quidsi $545M Foodista Talk Market Yieldex Lexcycle SnapTell Zappos $920M 2005 2006 2007 2008 2009 2010 The Book Depository Pushbutton Yap Cash Quorus 2011 Source: https://www.crunchbase.com/organization/amazon/acquisitions 30

32. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL ACQUISITION 2012 - 2016 Acquisitions help Amazon to compete with Google, Ebay, Apple TeachStreet Kiva Systems $775M Avalon Books LOVEFiLM $2.5M UpNext Double Helix Games Comixology Twitch $970M Rooftop Media Annapurna Labs $370M 2lemetry Amiato Shoefitr Clusterk Elemental Technologies $500M Safaba Translation Solutions Orbeus NICE EMVANTAGE Payments 2012 2013 2014 2015 2016 to be continued… Source: https://www.crunchbase.com/organization/amazon/acquisitions VONA Text-To-Speech Goodreads $150M Evi $26M Screentech Liquavista TenMarks Education GoPago 31

33. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL INTERNATIONALIZATION Amazons expansion tour started in Germany and England 1998 2000 2004 2005 2011 2012 2013 2014 2015 Germany England France Japan China Canada Italy Spain India Czech Republic Brazil Poland Mexiko Picture: https://www.weltkarte.com/typo3temp/images/political-map-of-the-world.jpg Source: http://www.mwpvl.com/html/amazon_com.html 32

34. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZON WEB SERVICES INFRASTRUCTURE Amazon Web Service hubs are located in all continents Source: https://aws.amazon.com/de/free/?sc_channel=PS&sc_campaign=acquisition_DE&sc_publisher=google&sc_medium=cloud_computing_b&sc_content=aws_url_e&sc_detail=amazon.web%20services&sc_category=cloud_computing&sc_segmen t=70270349552&sc_matchtype=e&sc_country=DE&s_kwcid=AL!4422!3!70270349552!e!!g!!amazon.web%20services&ef_id=VwpA2AAAAZPRfPAo:20160611121925:s 33

35. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SELECTED CUSTOMER Amazon Web Services drives companies in different industries Source: http://image.slidesharecdn.com/amazonwhitepaper-110511144038-phpapp01/95/amazoncom-the-hidden-empire-update-2013-7-638.jpg?cb=1403702271 34 SELECTED AMAZON Customer

36. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg (date: 06.06.2016)  https://www.linkedin.com/pulse/amazons-internet-things-strategy-new-flywheel-emerges-john-rossman (date: 06.06.2016)  http://www.samseely.com/blog/amznsupplychain (date: 06.06.2016)  http://www.foundingfuel.com/column/new-rules-of-business/disrupt-or-destroy-your-own-business-to-make-it-stronger/ (date:06.06.16)  http://www.samseely.com/blog/amznsupplychain (date::06.06.2016)  https://www.youtube.com/watch?v=mk0qTPqaFcw&ab_channel=EPCGroup.net (date:06.06.2016)  https://www.linkedin.com/pulse/amazons-internet-things-strategy-new-flywheel-emerges-john-rossman  https://aws.amazon.com/de/free/?sc_channel=PS&sc_campaign=acquisition_DE&sc_publisher=google&sc_medium=cl oud_computing_b&sc_content=aws_url_e&sc_detail=amazon.web%20services&sc_category=cloud_computing&sc_seg ment=70270349552&sc_matchtype=e&sc_country=DE&s_kwcid=AL!4422!3!70270349552!e!!g!!amazon.web%20servic es&ef_id=VwpA2AAAAZPRfPAo:20160611121925:s  https://www.crunchbase.com/organization/amazon/acquisitions  Max Jallifier , http://de.slideshare.net/MaxJallifier/final-presentation-16443977  http://www.mwpvl.com/html/amazon_com.html  Stone, Brad (2013): Der Allesverkäufer, Campus Verlag GmbH: Frankfurt am Main 35

37. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Products & Services Rebecca Spinner (B.A.) & David Strohm (B.A.) Picture: http://img.welt.de/img/webwelt/crop109129199/8056934742-ci3x2l-w900/Amazon-CEO-Jeff-Bezos-introduces-new-Kindle-tablet-products.jpg (20.07.2016) 36 “If you´re competitor-focused, you have to wait until there is a competitor doing something. Being customer- foused allows you to be more pioneering.“

38. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL KEY FINDINGS  The range of articles of Amazon can be differentiated into products and services  Amazon offers trade products and also own products  The offer of services also contains mediation platforms  A change from pure provider to developer of entertainment services has taken place in the entertainment area  The market for IT-Services has experienced a large increase, where cloud services play an important role  Nowadays the first product category “book“ is expanded by several additional services  With the takeover of several logistic services, Amazon enters the market of the transport and logistic industry  With “Amazon prime“ the company succeeded to obtain a unique selling point on the market Amazon – The everything store 37

39. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS & SERVICES – CLASSIFICATION OF PRODUCTS & SERVICES The range of articles of Amazon can be differentiated into products and services Products Services  Amazon as agent  Entertainment  Digital services  Services for books  Logistics services  Financial service  Amazon Prime 38 Selected key products and services  Online products  Amazon Exclusives  Amazon Fresh  Amazon Warehouse Deals  Amazon-branded Products  Amazon Fire Products  Kindle  Fire Tablet  Fire TV  Fire Phone  Other Amazon-branded Products  Echo  Basics  Further Amazon-branded products

40. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: ONLINE PRODUCTS Amazon offers more than 488 million different products Amazon “Everything Store“ Picture: http://media.corporate-ir.net/media_files/irol/17/176060/product/kindle_10.jpg (21.04.2016) Source: http://de.slideshare.net/faberNovel/amazoncom-the-hidden-empire/14-In_15_yearsAmazon_went_from (21.04.2016) https://de.statista.com/infografik/4358/anzahl-der-bei-amazon-angebotenen-produkte/ (22.04.2016) 1995: only one category - books 1995-1998: from books to music since 2011: more than 16 main categories 2013–2015: the product range has been doubled 2015: 488 million products are available in the store 39

41. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: ONLINE PRODUCTS Amazon offers unique and uncommon products Amazon Exclusives (USA) Pictures: http://g-ecx.images-amazon.com/images/G/01/exclusives/ae-hqp-img-generic._CB318639848_.png (20.04.2016) https://turnsignalgloves.zackees.com/wp-content/uploads/2014/08/branded-glove-closeup.jpg (20.04.2016) http://www.newgadgets.de/uploads/2013/05/olloclip.jpg (20.04.2016) Source: http://www.chip.de/news/Voellig-irres-Zeug-Amazon-Exclusive-Store-verkauft-Kickstarter-Produkte_77244047.html (22.04.2016) http://www.businessinsider.com/amazon-launches-amazon-exclusives-2015-3?IR=T (22.04.2016) • Unique and innovative products • Amazon helps young entrepreneurs to gain attention • Products are financed through crowdfunding platforms Features products which consumers can‘t find on other e-commerce sites Zackees: Cycling gloves with LED lights Olloclip: objective lens for iPhones 40

42. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: ONLINE PRODUCTS Amazon Fresh delivers groceries at the next day Amazon Fresh (USA) Picture: https://www.connectedly.com/sites/connectedly.com/files/styles/large/public/topic_images/2014/Amazon-Fresh.png?itok=bhGozeBh (20.04.2016) Source: https://www.simplora.de/wissen/online-supermaerkte/amazon-fresh (22.04.2016) https://fresh.amazon.com/welcome;jsessionid=E74CD0E94634A0EC95965CE91EC7A08A (22.04.2016) Next day and early morning door delivery of groceries And drinks Customer needs an Amazon prime fresh membership Amazon.com: 50.000 durable groceries Amazon fresh: 20.000 fresh and chilled groceries & drinks Allyouneedfresh REWE 41

43. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: ONLINE PRODUCTS Amazon offers pre-owned products Amazon Warehouse Deals Picture: http://dealravine.com/wp-content/uploads/2015/10/Amazon-Warehouse-Deals-Gepruefte-B-Ware-bis-zu-50-Prozent-reduziert-400x300-0ebf301a5ec026aa-1.jpg?c7bfec (20.04.2016) Source: http://www.amazon.com/gp/feature.html?docId=1000656811 (22.04.2016) http://www.amazon.de/Warehouse-Deals/b?ie=UTF8&node=3581963031 (22.04.2016) Discounted pre-owned and open-box items Amazon uses conditions such as: “like new“, “very good“, “good“, “acceptable“ Customers for pre-owned products Including all benefits (right of return, customer service, free Amazon prime delivery) Renting out textbooks Ebay 42

44. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: AMAZON FIRE PRODUCTS Amazon developed an innovative e-book reader Kindle Picture: http://ecx.images-amazon.com/images/I/61W0XGb88nL._SL1000_.jpg (20.04.2015) Source: http://www.amazon.com/gp/product/B00I15SB16/ref=topnav_storetab_kstore (22.04.2016) Users can browse, buy, download and read e-books, newspaper, magazines and more digital media E-book users Series of e-readers: Kindle, Kindle paperwhite, Kindle voyage, Kindle oasis, Kindle for kids bundle MAIN COMPETITORS: Tolino, Kobo, Pocketbook, Sony 43

45. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: AMAZON FIRE PRODUCTS Amazon developed an own tablet to compete against Samsung and Lenovo Fire Tablet Picture: http://ecx.images-amazon.com/images/I/61Lqu0uR43L._SL1000_.jpg (20.04.2016) Source: http://www.amazon.com/dp/B00TSUGXKE/ref=fs_ods_fs_tab_fd (22.04.2016) Tablet version of Amazon kindle e-reader Tablet users Series of tablet computers: Fire, Fire HD6, Fire HD8, Fire HD10, Fire kids edition Operating system: Google Android - Fire OS Apple, Samsung, Lenovo 44

46. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: AMAZON FIRE PRODUCTS Amazon offers a big entertainment bundle Fire TV Picture: http://ecx.images-amazon.com/images/I/61jPxT1VThL._SL1000_.jpg (20.04.2016) Source: http://www.amazon.com/b/?ie=UTF8&node=8521791011 (22.04.2016) Network applicant & entertainment device Streams digital content (audio & video) on a HD TV Microconsole – for playing video games Entertainment users Fire TV stick: powerful streaming media stick Fire TV (box): streaming media player (4K Ultra HD) Fire TV Gaming Edition: Fire TV, game controller, games Apple TV, Netflix, Maxdome, Play Station, X-Box 45

47. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: AMAZON FIRE PRODUCTS Amazon failed with his self developed smartphone Fire Phone Picture: http://vrworld.com/wp-content/uploads/2015/08/Amazon-Fire-Phone.jpeg (20.04.2016) Source: https://en.wikipedia.org/wiki/Fire_Phone (22.04.2016) 3D enabled smartphone Smartphone users Announced in June 2014 & launched in July 2014 Selling stopped in August 2015 Google Phone, iPhone, Samsung Galaxy 46

48. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: OTHER AMAZON-BRANDED PRODUCTS Amazon offers an intelligent and connected loudspeaker Echo Picture: http://ecx.images-amazon.com/images/I/61cnyft6IlL._SL1000_.jpg (20.04.2016) Source: http://www.amazon.com/dp/B00X4WHP5E/ref=nav_shopall_k_ods_ha_dr (22.04.2016) Wireless speaker which is voice-controlled Responds to the name “Alexa“ Multimedia users Plays music, answers questions, provides sport scores, reads audiobooks & news, reports traffic & weather, gives info on local businesses, controls lights/thermostats 47

49. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: OTHER AMAZON-BRANDED PRODUCTS Amazon offers alternatives to expensive brand products Basics Picture: http://technologydigits.com/wp-content/uploads/2015/04/AmazonBasics-High-Speed-Mini-HDMI-to-HDMI-Cable-Review.jpg (22.04.2016) Source: http://www.amazon.com/b/?node=10112675011 (22.04.2016) http://www.businessinsider.de/amazonbasics-tech-gadgets-worth-buying-2015-12?r=US&IR=T (22.04.2016) Amazon-branded electronic products and electronic accessoires Commodity-level items at lower prices than brand name products Blank DVDs, HDMI cables, Batteries… Home necessities: bed sheets, bath towels, knife sets… Syncwire, Aukey 48

50. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS: OTHER AMAZON-BRANDED PRODUCTS Amazon offers own products among other trade names Further Amazon-branded products Picture: http://i.computer-bild.de/imgs/6/2/3/6/4/8/1/Amazon-Elements-1024x576-9e332518ea8ef6db.jpg (23.04.2016) Source: http://www.spiegel.de/netzwelt/web/amazons-ableger-der-heimliche-hersteller-a-650756.html (23.04.2016) http://www.spiegel.de/netzwelt/web/amazon-elements-online-haendler-produziert-eigene-windeln-a-1006746.html (23.04.2016) Amazon products among other trade names Denali: tools Elements: Baby care products Amazon jewels division Strathwood: high-priced garden furniture Pinzon: interior decoration Pike Street: low-priced bedroom and bathroom products 49

51. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRODUCTS & SERVICES – CLASSIFICATION OF PRODUCTS & SERVICES Amazon offers an extensive range of different services Services  Amazon as Agent  Amazon Marketplace  Amazon Advantage  Amazon Handmade  Amazon Home Services  Entertainment  Amazon Originals  Amazon Instant Video  Amazon Prime Music  Amazon Studios  Logistics Services  Amazon Prime Now  Amazon Locker  Amazon Sunday Delivery  Amazon Parcel Delivery  Amazon Seafreight 50  Digital Services  Amazon Cloud Drive  Amazon Web Services  Amazon Software Dowloads  Amazon App Shop  Services for Books  Amazon Textbook Rental  Print on Demand  Kindle Direct Publishing  Kindle Library  Financial Services  Amazon VISA Credit Card  Amazon Prime

52. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: AMAZON.COM.MARKETPLACE Marketplace also offers used products and products from third companies Amazon Marketplace Source: http://www.experto.de/geld-sparen/verbrauchertipps/amazon-marketplace-was-ist-das-eigentlich.html (19.04.2016) http://www.amazon.de/gp/help/customer/display.html?nodeId=886416 (30.04.2016) https://services.amazon.de/programme/online-verkaufen/so-funktionierts.html (23.04.2016) http://www.focus.de/digital/internet/ebay/tid-11355/online-shopping-second-hand-artikel-amazon-marketplace_aid_322492.html (23.04.2016) Picture: http://www.chip.de/ii/2/2/6/7/2/4/0/4/03-amazon-a9f244d238eb6125.png (25.04.2016) A portal within the amazon sales platform, where new or used products could be bought or sold Independent sellers, price-conscious consumers, customers for vintage products Offering products, which are a part of the Amazon Portfolio and not sold by companies anymore, e.g. antiquarian books, records, etc. Ebay 51

53. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: AMAZON AS AGENT The offer of services also contains a specifically platform for brandnew products Amazon Advantage Source: http://www.unternehmer.de/marketing-vertrieb/707-19-000-000-000-umsatz-das-geheimnis-von-amazon (20.05.2016) http://advantage.amazon.de/gp/vendor/public/join (20.05.2016) http://advantage.amazon.de/gp/vendor/public/browse-main?rw_useCurrentProtocol=1 (20.05.2016) Picture: http://advantage.amazon.de/gp/vendor/public/rules?rw_useCurrentProtocol=1 (20.05.2016) A portal, where only new products can be bought or sold Complying consumers Only vendors allowed, who sell media products, books, records, movies and self-published books. 52

54. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: AMAZON AS AGENT Amazon broadens the range of articles by handmade products Amazon Handmade Source: http://www.handelsblatt.com/unternehmen/handel-konsumgueter/online-handel-bei-amazon-gibt-es-jetzt-auch-handmade/12431070.html (20.05.2016) http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-waechst-eine-kreative-kampfmaschine/12488510.html (01.06.2016) Picture: http://t3n.de/news/amazon-selbstgemachtes-handmade-612452/ (01.06.2016) A portal, where handmade products will be offered and sold sellers and consumers for handmade jewellery, furniture, art, lamps, party accessories, etc. Products are manufactured completly by hand, otherwise it must not sell on this portal Etsy, DaWanda 53

55. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: AMAZON AS AGENT On “Amazon Home Services“ different craftmen services can be engaged Amazon Home Service Picture: http://www.chicago-d.com/312/wp-content/uploads/2015/08/amazon-home-services.jpg (01.06.2016) Source: http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html (01.06.2016) http://www.heise-regioconcept.de/online-marketing/amazon-home-services (01.06.2016) A portal, which acts as intermediary between consumers and service providers Professional service providers or private person, who are specialized. Consumers with less time, know-how and / or also be price-conscious. Provision of services like repairs (car, smart phones, etc.) tyre changes, music lessons, cutting the lawn, etc. 54

56. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: ENTERTAINMENT Amazon competes in the video on demand market with Netflix and other providers Amazon Instant Video Picture: http://www.heise.de/imgs/18/1/4/6/1/5/9/1/bild_0-98244de756eaecf9.jpeg (20.04.2016) Source: http://www.amazon.com/Instant-Video/b/ref=topnav_storetab_atv?_encoding=UTF8&node=2858778011 (23.04.2016) https://en.wikipedia.org/wiki/Amazon_Video (23.04.2016) https://de.wikipedia.org/wiki/Amazon_Video (23.04.2016) Merger of Amazon prime and Amazon‘s online video store Lovefilm Online video store & Internet video on demand service Film and video lover Offers: for rental or for sale Television shows, Films, Amazon video, Amazon prime video, Lovefilm DVD Netflix, Maxdome, Watchever 55

57. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL A change from pure provider to developer of entertainment services has taken place in the entertainment area Amazon Originals Picture: https://tvbtn.files.wordpress.com/2015/09/amazon-originals-comedy-logo1.jpg (20.04.2016) Source: http://www.amazon.de/b?ie=UTF8&node=5701989031 (23.04.2016) Self-produced series of Amazon studios Exclusive advantages for Amazon prime members Series lover Productions: Bosch, Mad Dogs, Mozart in the jungle, Wanted…and some more 56 SERVICE: ENTERTAINMENT

58. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: ENTERTAINMENT Amazon competes in the music streaming market with Spotify and other providers Amazon Prime Music Picture: http://www.geek.com/wp-content/uploads/2014/06/amazon_prime_music.jpg (23.04.2016) Source: http://www.amazon.de/b/ref=dmm_pr_bbx_lrnpm?ie=UTF8&node=6692444031&pf_rd_m=A3JWKAKR8XB7XF&pf_rd_s=merchandised-search-left- 2&pf_rd_r=0YMC7QMXYRTDYQKYH45M&pf_rd_t=101&pf_rd_p=809030827&pf_rd_i=5686557031 (23.04.2016) Music streaming with Amazon Prime Unlimited, ad-free streaming Online and offline available Music lover Access to: over a million songs, thousands of albums, hundreds of playlists, personalized radio Spotify, Deezer, Apple music 57

59. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: ENTERTAINMENT With “Amazon studios“ Amazon has its own movie & series production company Amazon Studios Picture: http://img.gqitalia.it/wp-content/uploads/2015/01/1421746313_cinema-amazon-1280x628.jpg (20.04.2016) Source: https://studios.amazon.com/ (23.04.2016) Movie and series production company Content comes from online submissions and crowd-sourced feedback Open-door policy for submitting ideas online: From aspiring writers up to professionals Submitting movie scripts or video content Amazon storywriter: Free, cloud-based screenwriting app Submitting the finished script to Amazon Studios 58

60. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: DIGITAL SERVICES The market for IT-Services has currently a great development of growth, where cloud services will play an important role Amazon Cloud Drive Source: https://www.amazon.de/clouddrive/home (08.06.2016) https://www.amazon.de/clouddrive/pricing?ref_=cd_home_plans_pricing (08.06.2016) https://www.amazon.de/clouddrive/learnmore?ref_=cd_home_featlm#features-section (08.06.2016) Picture: https://www.tekrevue.com/wp-content/uploads/2015/03/amazon-cloud-drive.jpg (08.06.2016) Provision of an internet-based digital storage for telephone data, music and photos Amazon Prime customers (free of charge), mobile people, Photographers, young people Important part of the Amazon Web Services. Location-independent access to stored data with smart phones and tablets by an application. Dropbox, OneDrive 59

61. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: DIGITAL SERVICES Amazon supports companies in the day to day business activities by offering flexible server capacity Amazon Work Mail Source: https://aws.amazon.com/de/workmail/details/ (08.06.2016) https://aws.amazon.com/de/workmail/ (08.06.2016) https://www.amazon-watchblog.de/unternehmen/491-amazon-lieferprobleme-prime-workmail.html (08.06.2016) Picture: https://blink.ucsd.edu/_images/technology-tab/aws.jpg (08.06.2016) Provision of an internet-based digital storage for business emails, business contacts and appointment book. Business with small server capacity: start-up companies, small and medium-sized enterprises Important part of the Amazon Web Services. Location-independent access to stored business emails, contacts and appointments by smart phones and tablets. . 60

62. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: DIGITAL SERVICES Amazon offers a wide range of software downloads Amazon Software Downloads Source: http://www.heise.de/newsticker/meldung/Amazon-bietet-Software-zum-Download-1540838.html (30.04.2016) https://www.amazon.de/b?node=950236031 (30.04.2016) https://www.amazon.de/gp/help/customer/display.html?nodeId=201380160 (30.04.2016) Picture: http://i.computer-bild.de/imgs/6/2/2/3/2/5/0/Software-Downloads-Bestseller-bei-Amazon-658x370-3ebe1c34d19909ff.jpg (30.04.2016) Provision of a download service for software and video games for direct installation Mobile people Available downloads of software are e.g.: Graphics & Image Processing, Office-Programs, Security & Data Protection, Taxation & Finance, etc. 61

63. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: DIGITAL SERVICES Amazon has its own App Store for Android mobile devices Amazon App Store Source: http://www.golem.de/news/android-amazons-app-shop-ab-sofort-in-deutschland-verfuegbar-1208-94215.html4 (30.04.2016) http://www.giga.de/webapps/amazon-appstore/ (30.04.2016) Picture: http://www.touchbible.com/images/amazonappstore.png (30.04.2016) Provision of android applications for smart phones and tablets Amazon customer and user of Amazons own products Every application will be auditted extensively, before releasing on the store. Normally preinstalled on Amazon products like Kindle. Google, Apple 62

64. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: SERVICES FOR BOOKS Students and pupils receive a free account for study and school books Kindle Textbook Rental Source: http://winfuture.de/news,64414.html (02.05.2016) https://www.amazon.com/b?node=222321001 (02.05.2016) Picture: http://g-ecx.images-amazon.com/images/G/01/kindle/merch/textbooks/helvetica/US-KindleTextbooks-TCG-470x200._V343727592_.jpg (02.05.2016) Rental of specialized literature for pupils and students Students, pupils Location-independent access to this literature with Kindle products, smart phones, tablets and computers. 63

65. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: SERVICES FOR BOOKS Self-publisher has the chance to print their self-written books Print on Demand Source: http://www.literaturcafe.de/createspace-von-amazon-sinnvoller-service-fuer-kleine-verlage/ (02.05.2016) http://www.buchveroeffentlichen.com/print-on-demand-mit-amazon-create-space/ (02.05.2016) https://www.createspace.com/diy-de?ref=1681523 (02.05.2016) Picture: https://images-eu.ssl-images-amazon.com/images/G/03/books/DEPODLogo._V319596901_.jpg (02.05.2016) Publishing houses and self-publisher can print their books in small print-runs without a minimum circulation. Publishing houses and self-publisher The books will not be printed until one customer have ordered one online on the Amazon sales platform Publishing houses 64

66. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: SERVICES FOR BOOKS With “Kindle Direct Publishing“ it´s possible to publish books directly in a digital way Kindle Direct Publishing Source: http://www.spiegel.de/wirtschaft/unternehmen/amazon-wie-der-konzern-den-ebook-markt-erobert-a-1028186.html (24.04.2016) https://kdp.amazon.com/ (24.04.2016) Picture: http://www.tckpublishing.com/wp-content/uploads/2014/03/kindle-direct-publishing.jpg (24.04.2016) Authors can publish their self-written books as a e-Book on the Amazon sales platform. Prospective authors, authors with less money or reputation to publish by publishing houses. The sales price can be determined by the authors themselves. In general they receive more percent of the sales price like selling via publishing houses. Publishing houses 65

67. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: SERVICES FOR BOOKS Amazon has an own digital library for its customers Kindle Library Source: http://www.amazon.de/gp/help/customer/display.html?nodeId=200757120 (24.04.2016) http://www.buchreport.de/nachrichten/online/online_nachricht/datum/2012/10/12/amazon-eroeffnet-digitale-bibliothek.htm?no_cache=1 (24.04.2016) http://www.n-tv.de/wirtschaft/Amazon-verleiht-Ebooks-article7451211.html (24.04.2016) Picture: http://www.hifitest.de/images/news/big/amazon-medien-amazon-kindle-leihbuecherei-ab-sofort-verfuegbar-3507.jpg (24.04.2016) Just one book can be rented monthly and the book has to be return before another book can be rented Consumer of e-books and Amazon products A mobile device of Amazon is required to use this service, like Kindle products, Fire Phones or Fire Tablets 66

68. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: LOGISTICS SERVICES Amazon enables an one hour delivery for selected products Amazon Prime Now Source: http://www.welt.de/wirtschaft/webwelt/article155266101/So-funktioniert-das-neue-Ein-Stunden-Amazon.html (08.06.2016) http://www.giga.de/webapps/amazon-prime/specials/amazon-prime-now-startet-lieferungen-innerhalb-einer-stunde-bald-auch-in-deutschland/ (08.06.2016) Picture: http://i.computer-bild.de/imgs/6/9/8/9/7/3/5/Amazon-Prime-Now-Produktfoto-1024x576-2a67e2e95b11470b.jpg (08.06.2016) This concept guarantees a delivery within one or two hours after ordering certain products like food, beverage, toys and selected electronic items People with short-term requirements Conditions: Amazon Prime customer, minimum order and a delivery fee for the one hour delivery. Only offered in a few cities, like New York, Berlin, Mailand, London, etc. 67

69. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: LOGISTICS SERVICES The customers have the opportunity to pick up their orders from an Amazon Locker Amazon Locker Source: http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-locker-onlineriese-will-eigene-packstationen-aufbauen/12987006.html (08.06.2016) http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html (08.06.2016) Picture: http://www.davetavres.com/wp-content/uploads/2013/12/photo61.jpg (08.06.2016) Development of a network with own, fully automatic package locker. Consumers who order products at amazon.com and also want to return ordered products. Customers can collect their parcels and / or lock in returns DHL 68

70. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: LOGISTICS SERVICES Amazon enables a delivery on Sunday Amazon Sunday Delivery Source: http://www.boersenblatt.net/artikel-onlinehandel.690060.html (08.06.2016) http://futurezone.at/digital-life/amazon-liefert-in-usa-auch-am-sonntag-aus/35.113.955 (08.06.2016) Picture: http://www.21cpw.com/wp-content/uploads/2014/07/amazon-usps.jpg (08.06.2016) This concept includes a delivery, which is availabe 7 days a week. It is already implemented in several cities of the USA and Great Britain People with short-term requirements Conditions: Amazon Prime customer and the availability of the ordered products. USA: cooperation with the logistics service provider U.S, Postal Service 69

71. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: LOGISTICS SERVICES Amazon enters the delivery service business by delivering the parcels which were ordered on its webstore Amazon Parcel Delivery Source: https://www.onlinehaendler-news.de/handel/allgemein/20155-liefer-service-amazon-stellt-pakete-selbst-zu.html (08.06.2016) http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html (08.06.2016) http://www.sueddeutsche.de/muenchen/fuerstenfeldbruck/olching-wo-amazon-die-pakete-fuer-die-muenchner-zusammenstellt-1.2756472 (08.06.2016) http://www.zeit.de/wirtschaft/2016-02/amazon-paketdienst-usa-auslieferung-eigene-fahrer (08.06.2016) Picture: http://www.manager-magazin.de/images/image-903513-galleryV9-wegz-903513.jpg (08.06.2016) An action to shape the final delivery regarding to the main object: Same-Day-Delivery and in some cases Next-Day-Delivery Consumers who order products at amazon.com Building of distribution centres near big cities and regional or local logistics service provider will take over the transportation to the end-customers DHL, Hermes 70

72. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: LOGISTICS SERVICES Amazon advances their field of logistics services by seafreight Amazon Seafreight Source: http://www.verkehrsrundschau.de/amazon-draengt-ins-seefracht-geschaeft-1743719.html (08.06.2016) http://www.manager-magazin.de/unternehmen/artikel/amazon-wird-seefracht-dienstleister-a-1072368.html (08.06.2016) http://www.handelszeitung.ch/unternehmen/amazon-steigt-ins-seefracht-geschaeft-ein-965466 (08.06.2016) Picture: http://www.handelszeitung.ch/sites/handelszeitung.ch/files/imagecache/teaser-big/lead_image/frachtschiff.jpg (08.06.2016) An action to act in the sea freight business Producer, who want to send their products via seafreight. Even if Amazon can not operate own ships on the ocean, they have now the possibility to book shipping space. Kühne & Nagel, Schenker, Dachser, Panalpina 71

73. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: FINANCIAL SERVICES Amazon attracts and retains customers through a credit card with an integrated bonus program Amazon VISA Credit Card Picture: http://www.beyondthecoupon.com/wp-content/uploads/2013/07/Amazon-Credit-Card-Image.png (20.04.2016) Source: https://www.amazon.com/iss/credit/rewardscardmember/ref=nav_shopall_credit_cbcc?_encoding=UTF8&plattr=CBCCGNO (23.04.2016) Attractive bonus program Get rewarded on every purchase Collect Amazon-points Loyal Amazon customers Redeem for: Instant savings at Amazon, cash-back, gift cards, travel Start with a free credit & no annual fee for the first year Payback 72

74. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SERVICE: AMAZON PRIME With “Amazon prime“ the company succeeded to obtain a unique selling point on the market Picture: http://www.gizmosnack.com/wp-content/uploads/2015/11/Amazon-Prime-logo.png (21.04.2016) Source: https://www.amazon.com/gp/product/B00DBYBNEE/ref=nav_prime_try_btn?redirect=true (19.04.2016) Free two-day shipping Unlimited movies and TV shows Unlimited music streaming Over a million e-books Free unlimited photo storage Free same-day delivery in eligible areas Save 25% with prepayment discount Premium access to exclusive offers and promotions …and many other benefits. 73

75. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SPECULATIONS FOR THE FUTURE Amazon is constantly evolving and expands into new business Source: http://www.suedkurier.de/nachrichten/wirtschaft/Amazon-zieht-es-in-die-Mode-Branche;art416,8632062?xing_share=news (08.06.2016) http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html (08.06.2016) https://fresh.amazon.com/dash/ (08.06.2016) Picture: http://images.technewstoday.com.s3.amazonaws.com/tnt/Amazon-Just-Made-Life-Easier-For-You.jpg (08.06.2016) Entering the fashion industry with own fashion collections focusing on Prêt-à-Porter.  Sales online and offline is planned Developing a concept of automatic payment at supermarkets. At this, the purchasing processes of customers will be monitored and they can leave the market with out physical payment. The customers will be identified by their face or ID-Cards.  Patent is already applied Amazon Dash – A stick, which can scan the barcodes of products to create a digital shopping list.  currently in the test phase 74

76. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://de.slideshare.net/faberNovel/amazoncom-the-hidden-empire/14-In_15_yearsAmazon_went_from (21.04.2016)  https://de.statista.com/infografik/4358/anzahl-der-bei-amazon-angebotenen-produkte/ (22.04.2016)  http://www.chip.de/news/Voellig-irres-Zeug-Amazon-Exclusive-Store-verkauft-Kickstarter-Produkte_77244047.html (22.04.2016)  http://www.businessinsider.com/amazon-launches-amazon-exclusives-2015-3?IR=T (22.04.2016)  https://www.simplora.de/wissen/online-supermaerkte/amazon-fresh (22.04.2016)  https://fresh.amazon.com/welcome;jsessionid=E74CD0E94634A0EC95965CE91EC7A08A (22.04.2016)  http://www.amazon.com/gp/feature.html?docId=1000656811 (22.04.2016)  http://www.amazon.de/Warehouse-Deals/b?ie=UTF8&node=3581963031 (22.04.2016)  http://www.amazon.com/gp/product/B00I15SB16/ref=topnav_storetab_kstore (22.04.2016)  http://www.amazon.com/dp/B00TSUGXKE/ref=fs_ods_fs_tab_fd (22.04.2016)  http://www.amazon.com/b/?ie=UTF8&node=8521791011 (22.04.2016)  https://en.wikipedia.org/wiki/Fire_Phone (22.04.2016)  http://www.amazon.com/dp/B00X4WHP5E/ref=nav_shopall_k_ods_ha_dr (22.04.2016)  http://www.amazon.com/b/?node=10112675011 (22.04.2016)  http://www.businessinsider.de/amazonbasics-tech-gadgets-worth-buying-2015-12?r=US&IR=T (22.04.2016) 75

77. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://www.spiegel.de/netzwelt/web/amazons-ableger-der-heimliche-hersteller-a-650756.html (23.04.2016)  http://www.spiegel.de/netzwelt/web/amazon-elements-online-haendler-produziert-eigene-windeln-a-1006746.html (23.04.2016)  http://www.amazon.com/Instant-Video/b/ref=topnav_storetab_atv?_encoding=UTF8&node=2858778011 (23.04.2016)  https://en.wikipedia.org/wiki/Amazon_Video (23.04.2016)  https://de.wikipedia.org/wiki/Amazon_Video (23.04.2016)  http://www.amazon.de/b?ie=UTF8&node=5701989031 (23.04.2016)  http://www.amazon.de/b/ref=dmm_pr_bbx_lrnpm?ie=UTF8&node=6692444031&pf_rd_m=A3JWKAKR8XB7XF&pf_rd_s =merchandised-search-left- 2&pf_rd_r=0YMC7QMXYRTDYQKYH45M&pf_rd_t=101&pf_rd_p=809030827&pf_rd_i=5686557031 (23.04.2016)  https://studios.amazon.com/ (23.04.2016)  https://www.amazon.com/iss/credit/rewardscardmember/ref=nav_shopall_credit_cbcc?_encoding=UTF8&plattr=CBCCG NO (23.04.2016)  https://www.amazon.com/gp/product/B00DBYBNEE/ref=nav_prime_try_btn?redirect=true (19.04.2016)  http://www.experto.de/geld-sparen/verbrauchertipps/amazon-marketplace-was-ist-das-eigentlich.html (19.04.2016)  http://www.amazon.de/gp/help/customer/display.html?nodeId=886416 (30.04.2016)  https://services.amazon.de/programme/online-verkaufen/so-funktionierts.html (23.04.2016)  http://www.chip.de/ii/2/2/6/7/2/4/0/4/03-amazon-a9f244d238eb6125.png (25.04.2016) 76

78. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://www.focus.de/digital/internet/ebay/tid-11355/online-shopping-second-hand-artikel-amazon- marketplace_aid_322492.html (19.04.2016)  http://www.unternehmer.de/marketing-vertrieb/707-19-000-000-000-umsatz-das-geheimnis-von-amazon (20.05.2016)  http://advantage.amazon.de/gp/vendor/public/join (20.05.2016)  http://advantage.amazon.de/gp/vendor/public/browse-main?rw_useCurrentProtocol=1 (20.05.2016)  http://advantage.amazon.de/gp/vendor/public/rules?rw_useCurrentProtocol=1 (20.05.2016)  http://www.handelsblatt.com/unternehmen/handel-konsumgueter/online-handel-bei-amazon-gibt-es-jetzt-auch- handmade/12431070.html (20.05.2016)  http://t3n.de/news/amazon-selbstgemachtes-handmade-612452/ (01.06.2016)  http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-waechst-eine-kreative- kampfmaschine/12488510.html (01.06.2016)  http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html (01.06.2016)  http://www.heise-regioconcept.de/online-marketing/amazon-home-services (01.06.2016)  https://www.amazon.de/clouddrive/home (08.06.2016)  https://www.amazon.de/clouddrive/pricing?ref_=cd_home_plans_pricing (08.06.2016)  https://www.amazon.de/clouddrive/learnmore?ref_=cd_home_featlm#features-section (08.06.2016)  https://www.tekrevue.com/wp-content/uploads/2015/03/amazon-cloud-drive.jpg (08.06.2016) 77

79. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  https://aws.amazon.com/de/workmail/details/ (08.06.2016)  https://aws.amazon.com/de/workmail/ (08.06.2016)  https://www.amazon-watchblog.de/unternehmen/491-amazon-lieferprobleme-prime-workmail.html (08.06.2016)  https://blink.ucsd.edu/_images/technology-tab/aws.jpg (08.06.2016)  http://www.chip.de/downloads/Amazon-Music_61989759.html (02.05.2016)  https://www.amazon.de/amazon-music-app/b?ie=UTF8&node=1949586031&ref=cssoc_FM_SS_OTHER (02.05.2016)  http://www.chip.de/webapps/Amazon-Music_48139030.html (02.05.2016)  http://blog.sonos.com/wp-content/uploads/2015/10/Amazon_Music_logo1-1.png (02.05.2016)  http://www.heise.de/newsticker/meldung/Amazon-bietet-Software-zum-Download-1540838.html (30.04.2016)  https://www.amazon.de/b?node=950236031 (30.04.2016)  https://www.amazon.de/gp/help/customer/display.html?nodeId=201380160 (30.04.2016)  http://i.computer-bild.de/imgs/6/2/2/3/2/5/0/Software-Downloads-Bestseller-bei-Amazon-658x370-3ebe1c34d19909ff.jpg (30.04.2016)  http://www.golem.de/news/android-amazons-app-shop-ab-sofort-in-deutschland-verfuegbar-1208-94215.html4 (30.04.2016)  http://www.giga.de/webapps/amazon-appstore/ (30.04.2016)  http://www.touchbible.com/images/amazonappstore.png (30.04.2016) 78

80. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://winfuture.de/news,64414.html (02.05.2016)  https://www.amazon.com/b?node=222321001 (02.05.2016)  http://g-ecx.images-amazon.com/images/G/01/kindle/merch/textbooks/helvetica/US-KindleTextbooks-TCG- 470x200._V343727592_.jpg (02.05.2016)  http://www.literaturcafe.de/createspace-von-amazon-sinnvoller-service-fuer-kleine-verlage/ (02.05.2016)  http://www.buchveroeffentlichen.com/print-on-demand-mit-amazon-create-space/ (02.05.2016)  https://www.createspace.com/diy-de?ref=1681523 (02.05.2016)  https://images-eu.ssl-images-amazon.com/images/G/03/books/DEPODLogo._V319596901_.jpg (02.05.2016)  http://www.spiegel.de/wirtschaft/unternehmen/amazon-wie-der-konzern-den-ebook-markt-erobert-a-1028186.html (24.04.2016)  https://kdp.amazon.com/ (24.04.2016)  http://www.tckpublishing.com/wp-content/uploads/2014/03/kindle-direct-publishing.jpg (24.04.2016)  http://www.amazon.de/gp/help/customer/display.html?nodeId=200757120 (24.04.2016)  http://www.buchreport.de/nachrichten/online/online_nachricht/datum/2012/10/12/amazon-eroeffnet-digitale- bibliothek.htm?no_cache=1 (24.04.2016)  http://www.n-tv.de/wirtschaft/Amazon-verleiht-Ebooks-article7451211.html (24.04.2016)  http://www.hifitest.de/images/news/big/amazon-medien-amazon-kindle-leihbuecherei-ab-sofort-verfuegbar-3507.jpg (24.04.2016) 79

81. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://www.welt.de/wirtschaft/webwelt/article155266101/So-funktioniert-das-neue-Ein-Stunden-Amazon.html (08.06.2016)  http://www.giga.de/webapps/amazon-prime/specials/amazon-prime-now-startet-lieferungen-innerhalb-einer-stunde-bald- auch-in-deutschland/ (08.06.2016)  http://i.computer-bild.de/imgs/6/9/8/9/7/3/5/Amazon-Prime-Now-Produktfoto-1024x576-2a67e2e95b11470b.jpg (08.06.2016)  http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-locker-onlineriese-will-eigene-packstationen- aufbauen/12987006.html (08.06.2016)  http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html (08.06.2016)  http://www.davetavres.com/wp-content/uploads/2013/12/photo61.jpg (08.06.2016)  http://www.boersenblatt.net/artikel-onlinehandel.690060.html (08.06.2016)  http://futurezone.at/digital-life/amazon-liefert-in-usa-auch-am-sonntag-aus/35.113.955 (08.06.2016)  http://www.21cpw.com/wp-content/uploads/2014/07/amazon-usps.jpg (08.06.2016)  https://www.onlinehaendler-news.de/handel/allgemein/20155-liefer-service-amazon-stellt-pakete-selbst-zu.html (08.06.2016)  http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html (08.06.2016)  http://www.sueddeutsche.de/muenchen/fuerstenfeldbruck/olching-wo-amazon-die-pakete-fuer-die-muenchner- zusammenstellt-1.2756472 (08.06.2016) 80

82. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://www.zeit.de/wirtschaft/2016-02/amazon-paketdienst-usa-auslieferung-eigene-fahrer (08.06.2016)  http://www.manager-magazin.de/images/image-903513-galleryV9-wegz-903513.jpg (08.06.2016)  http://www.verkehrsrundschau.de/amazon-draengt-ins-seefracht-geschaeft-1743719.html (08.06.2016)  http://www.manager-magazin.de/unternehmen/artikel/amazon-wird-seefracht-dienstleister-a-1072368.html (08.06.2016)  http://www.handelszeitung.ch/unternehmen/amazon-steigt-ins-seefracht-geschaeft-ein-965466 (08.06.2016)  http://www.suedkurier.de/nachrichten/wirtschaft/Amazon-zieht-es-in-die-Mode- Branche;art416,8632062?xing_share=news (08.06.2016)  http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html (08.06.2016)  https://fresh.amazon.com/dash/ (08.06.2016)  http://images.technewstoday.com.s3.amazonaws.com/tnt/Amazon-Just-Made-Life-Easier-For-You.jpg (08.06.2016) 81

83. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL Technology & Innovation Mona Milite (B.A.) & Mona Werz (B.A.) Source: http://blogs-images.forbes.com/steveschaefer/files/2015/01/Bezos-Amazon-e1421161028363-1940x1090.jpg (12.07.2016) The common question that gets asked in business is, „why?“ That‘s a good question, but an equally valid question is, „why not?“ 82

84. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL KEY FINDINGS  Amazon want to be the biggest collector of data in the world  Prime Air: The future of delivery  From retailing to data space provider  Optimizing the sales through delivery and storage services  Maximum Software Backup to handle the big data  Artificial Intelligence in our homes Always be one step ahead 83

85. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL THE ROLE OF TECHNOLOGY Customer Business Partner SuppliersBackend Technology Amazon want to be the biggest collector of data in the world 84 1 Click User Review System Collaborative filtering technology Prime Air Look inside the book Software Backup Alexa Amazon Web Services Server Storage Network Database Developing Administration and Registry Fullfilment Center Fulfillment by Amazon DATADATA DATA DATA DATA DATA DATA DATA

86. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL CUSTOMER – CENTRIC INNOVATIONS E-commerce is more comfortable than commerce for customers Source: Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 212 f. Picture: http://www.leavesofgoldpress.com/img/look-inside1.png (10.06.2016) http://worldcinemaparadise.com/wp/wp-content/uploads/2015/01/Amazon-3.jpg (10.06.2016) http://www.bilder.keepdrum.de/etope/amazon-payment.gif (10.06.2016) http://7hoursalesletter.com/images/add-to-cart-big.gif (10.06.2016) http://www.sherrysnider.com/wp-content/uploads/2012/09/BuyNowWithOneClick.png (10.06.2016) 85 Select  Customer reviews (1995)  Recommendations (1997)  Look inside the book (2001)  Search inside the book (2003) Order  1-Click Ordering (1999) Receive  Where‘s my stuff (2001)  Free Super Saver Shipping (2002) Amazon was a first-mover for most of e-commerce‘s now ubiquitous best-practices

87. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL 1-CLICK ORDERING Reduces risk to lose customers Source: Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 212 f. Picture: http://australiandiscounts.com/wp-content/uploads/2012/05/PAyment-11.png?069dc4 (10.06.2016) 86 Conversion funnel  Each step of the funnel carries a risk to lose potential customers and lead to shopping cart abandonments Conversion optimization  Amazon monitored each step to improve its conversion rate, a tactic that is now pervasive in the industry 1-click ordering  Patented in 1999, and licensed to Apple in 2000  Allows to bypass the shopping cart: it‘s only one step!  Increased Amazon‘s conversion rate With 1-Click, Amazon revolutionized the buying process by taking convenience to extremes

88. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL User Review System Improved review system (since June 2015) Prioritize: The power in the hand of the customers Source: http://www.cnet.com/news/amazon-updates-customer-reviews-with-new-machine-learning-platform/ Picture: http://beginnerstech.co.uk/wp-content/uploads/2015/06/how-to-get-amazon-reviews-kindle.jpg (10.06.2016) 1. newer reviews 2. reviews from verified Amazon purchasers 3. and those that more customers vote up as being helpful 87

89. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LOOK INSIDE THE BOOK Being seduced Source: https://www.amazon.com/gp/feature.html/ref=amb_link_373790802_1?ie=UTF8&docId=1001119971&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center- 1&pf_rd_r=9GWHAKBDZNKDQMW2WYNK&pf_rd_t=1401&pf_rd_p=1524211922&pf_rd_i=1001119971#sampling (10.06.2016) Picture: http://i.computer-bild.de/imgs/6/6/8/2/1/1/1/Buecher-und-Amazon-Logo-658x370-1b9c296afdefa765.jpg (10.06.2016) 88 Improved search results Amazon use for searching the actual words from inside participating print book – not just the author or title For matches inside the book, we also display a short excerpt and links to the page where the query matched To promote and merchandise their books Sample pages from within the reader Switch back and forth between the print and Kindle samples without leaving the reader View books on similar topics and previously viewed books For Publisher Improved search results For Customer

90. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL COLLABORATIVE FILTERING TECHNOLOGY Influences your demand Source: http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016) http://www.cdkglobaldigitalmarketing.com/blog/audience-management/dealership-digital-audience/ (03.06.2016) of Amazon.com product sales are generated by its recommendation engine 35 % Item-to-item collaborative filtering  recommendation algorithms to personalize the online store for each customer  recommendations in real time  scales to massive data sets  a targeted marketing tool in email campaigns and on most of the Amazon Web sites’ pages Costumers can:  filter their recommendations by product line and subject area  rate the recommendations products  rate their previous purchases  and see why items are recommended 89

91. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL COLLABORATIVE FILTERING TECHNOLOGY Iterative algorithm provides a better approach Picture: https://www.amazon.de/Logitech-G502-Proteus-Tunable-Gaming/dp/B00IEOEFFK/ref=pd_bxgy_147_2?ie=UTF8&psc=1&refRID=2GZX9DP2VW1CSFNNPFS8 https://www.amazon.de/Logitech-Gaming-Tastatur-Deutsch-schwarz/dp/B009J8VE36 Source: http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016) 90 1 2 2 Customer 1 buys keyboard and mouse Customer 2 considers only the keyboard Amazon knows from the previous customers that there exists a relationship between the mouse and the keyboard. Therefore, the customer 2 receives the proposal to buy the mouse too

92. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PRIME AIR The future of delivery Picture: http://1.f.ix.de/scale/geometry/695/q75/imgs/18/1/7/3/1/4/2/0/amazon-f497c746371a99be-1dc624ad063a18c6.jpeg (03.06.2016) https://images-na.ssl-images-amazon.com/images/G/01/112715/download/Amazon_Revising_the_Airspace_Model_for_the_Safe_Integration_of_sUAS.pdf (03.06.2016) Source: https://www.amazon.com/b?node=8037720011&ref=tsm_1_yt_s_amzn_290791026 91 How will it work?  Deliver packages up to five pounds in 30 minutes or less  Flying under 400 feet and weighing less than 55 pounds  The drones take advantage of sophisticated sense and avoid technology  High degree of automation, to safely operate beyond the line of sight to distances of 10 miles or more Link to marketing video: https://www.youtube.com/ watch?v=MXo_d6tNWuY& feature=youtu.be

93. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZON WEB SERVICES FOR BUSINESS PARTNERS Rich Platform Services Higher Development productivity and operational efficiency Horizontal and Vertical Infrastructure From retailing to data space provider Source: https://aws.amazon.com/de/products/?nc2=h_ql_ny_livestream_blu (08.06.2016)……. 92 Developing Tools Administration Tools User Service Security & Identity Analyses Business Applications Mobile Services IoT Data analyses Database Net-working Saving & providing content

94. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AMAZON WEB SERVICES OVERVIEW For every requirement the right solution Picture: http://www.conceptdraw.com/examples/web-architecture-diagram (10.06.2016): 93

95. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AWS - COMPUTING AND STORAGING ELEMENTS Amazon Elastic Compute Cloud (EC2)  Optimize the computing capacity in the cloud  Support developer in cloud computing  Virtual server  Linux or Microsoft based  Pay only for used hours  Not Persistent Example:  Animoto uses EC2 to handle 750,000 user within tree days  Time Inc. migrated five global datacenter From retailing to data space provider Picture: https://aws.amazon.com/de/free/ (10.06.2016) Source: https://aws.amazon.com/de/ec2/ (10.06.2016) https://aws.amazon.com/de/s3/ (10.06.2016) Amazon Simple Storage Service (S3)  Filehosting Service  Pay per used space  Access over HTTP / HTTPS  3 different saving options depending on the lifetime of the data Example:  Netflix provides billions of contents with S3  Airbnb processed 10 TB of User pictures 94

96. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AWS - CONTENT DELIVERY AND MONITORING From retailing to data space provider Picture: https://aws.amazon.com/de/cloudfront/streaming/ (08.06.2016) Source: https://aws.amazon.com/de/cloudfront/ (10.06.2016) https://aws.amazon.com/de/elasticbeanstalk/ (10.06.2016) 95 Amazon CloudFront (CDN)  Content Delivery Network  Distribute content from EC2 & S3 globally to reduce access time  Access over HTTP  Encrypted with SSL  Pay per used areas  Edge Locations Amazon CloudWatch  Monitoring Service for AWS customers  Set Metrics  Collect log files  Compatible with AWS products

97. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AWS - DATABASES Amazon Relational Database Service (RDS)  simplifies the establishment, manage, and scale in a database in a cloud  RDS offers six database engines  Amazon Aurora  Oracle  Microsoft SQL Server  PostgreSQL  MySQL  MariaDB From retailing to data space provider Picture: https://aws.amazon.com/de/free/ (10.06.2016) Source: https://aws.amazon.com/de/rds/ (10.06.2016) https://aws.amazon.com/de/dynamodb/ (09.06.2016) http://aws.amazon.com/de/solutions/case-studies/bmw/ (08.06.2016 Amazon DynamoDB  NoSQL Database Service  Mobile Aplications Example:  BMW Group use DynamoDB for connecting their 7-series to obtain dynamic updated map information 96

98. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL AWS - DEPLOYMENT AND MANAGEMENT ELEMENTS Amazon AWS Identity and Access Management (IAM)  Management of users and resources in an organization  Access Control through requesting temporary credential in a configured period From retailing to data space provider Picture: https://aws.amazon.com/de/free/ (10.06.2016) Source: https://aws.amazon.com/de/iam/?nc1=f_m/ (10.06.2016) https://aws.amazon.com/de/cloudwatch/ (10.06.2016) 97 Amazon Elastic Beanstalk  PaaS for Web Application Management  Developed with Java, .NET, PHP, Node.js, Python, Ruby, Go & Docker  Based on servers like Apache, Nginx, Passenger & IIS  Customers only upload the code  AWS look after the right allocation of capacity, load balancing, automated scaling and monitoring the status  Applications from customers could be placed on AWS Marketplace for third parties Example:  Prezi postponed two major backend services to AWS Elastic Beanstalk

99. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SUPPLIERS Amazon Fulfillment Centers – the heart of the logistic chain  Invented in the late 90s  Algorithms brought demand and FCs seamlessly together  Six-Sigma mixed with Toyota Production System  SLAM-Process  Chaotic warehousing system  Since 2002 FIFO Principle  Software calculates the fastest and cheapest way of delivering the order  Click to Ship Time under four hours Fulfillment by Amazon  Other Providers can use the storage and delivery service  Two day shipping for Prime provides access to Amazons most attractive customers Optimizing the sales through delivery and storage services Picture: https://www.amazon.com/b?node=8947548011 (10.06.2016) Source: http://cmuscm.blogspot.de/2014/01/amazon-to-apply-demand-forecasts-to.html (08.06.2016) Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 188 f. Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 212 f. Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 217 f. 98

100. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL BACKEND Maximum Software Backup to handle the big data Picture: http://www.tweaktown.com/news/37403/amazon-hiring-engineers-for-designing-its-own-arm-powered-server-chips/index.html (12.07.2016) Source: http://www.se-radio.net/2006/12/episode-40-interview-werner-vogels/ (08.06.2016) http://queue.acm.org/detail.cfm?id=1142065 (08.06.2016) http://arstechnica.com/information-technology/2016/04/amazon-cloud-has-1-million-users-and-is-near-10-billion-in-annual-sales/ (10.06.2016) 99 Platforms: Linux, Oracle, C++, Perl, Mason, Java, Jboss, Servlets More than 304 million active customer accounts More than 1 million Amazon Web Services customers Scalability at its best Architectural Change from two-tier monolith to a n-tier Client Server

101. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL ALEXA: SOA SERVICE-ORIENTED ARCHITECTURE Artificial Intelligence in our homes Picture: https://www.amazon.com/Amazon-Echo-Bluetooth-Speaker-with-WiFi-Alexa/dp/B00X4WHP5E (11.06.2016) Source: https://developer.amazon.com/appsandservices/solutions/alexa (10.06.2016) https://developer.amazon.com/public/solutions/alexa/alexa-skills-kit (09.06.2016) 100 Amazon Echo voice-enabled wireless speaker Amazon provides with Alexa Voice Services space for speaking developments Alexa Skills Set gives the opportunity for developers to create a link between Echo and their business Building new skills with AWS Lambda What’s the weather in Munich this weekend? Play music by Bruno Mars Set an alarm to eight a.m. Wikipedia: Artificial Intelligence Tell my the latest News Add “pay bills” to my to-do list

102. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  Stone, Brad (2013): Der Allesverkäufer, Campus Verlag GmbH: Frankfurt am Main  http://www.leavesofgoldpress.com/img/look-inside1.png (10.06.2016)  http://worldcinemaparadise.com/wp/wp-content/uploads/2015/01/Amazon-3.jpg (10.06.2016)  http://www.bilder.keepdrum.de/etope/amazon-payment.gif (10.06.2016)  http://7hoursalesletter.com/images/add-to-cart-big.gif (10.06.2016)  http://www.sherrysnider.com/wp-content/uploads/2012/09/BuyNowWithOneClick.png (10.06.2016)  http://australiandiscounts.com/wp-content/uploads/2012/05/PAyment-11.png?069dc4 (10.06.2016)  http://i.dailymail.co.uk/i/pix/2014/12/16/2419825C00000578-0-image-a-19_1418747598914.jpg (10.06.2016)  http://www.cnet.com/news/amazon-updates-customer-reviews-with-new-machine-learning-platform/  http://beginnerstech.co.uk/wp-content/uploads/2015/06/how-to-get-amazon-reviews-kindle.jpg (10.06.2016)  https://www.amazon.com/gp/feature.html/ref=amb_link_373790802_1?ie=UTF8&docId=1001119971&pf_rd_m=ATVPD KIKX0DER&pf_rd_s=center- 1&pf_rd_r=9GWHAKBDZNKDQMW2WYNK&pf_rd_t=1401&pf_rd_p=1524211922&pf_rd_i=1001119971#sampling (10.06.2016)  http://i.computer-bild.de/imgs/6/6/8/2/1/1/1/Buecher-und-Amazon-Logo-658x370-1b9c296afdefa765.jpg (10.06.2016)  http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016)  http://www.cdkglobaldigitalmarketing.com/blog/audience-management/dealership-digital-audience/ (03.06.2016)  http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016) 101

103. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  http://www.feihongbo.com/wp-content/images/20141120/j1jzt5g2pwy.jpg (05.06.2016)  https://www.amazon.com/b?node=8037720011&ref=tsm_1_yt_s_amzn_290791026  http://1.f.ix.de/scale/geometry/695/q75/imgs/18/1/7/3/1/4/2/0/amazon-f497c746371a99be-1dc624ad063a18c6.jpeg (03.06.2016)  https://images-na.ssl-images- amazon.com/images/G/01/112715/download/Amazon_Revising_the_Airspace_Model_for_the_Safe_Integration_of_sUA S.pdf (03.06.2016)  https://aws.amazon.com/de/products/?nc2=h_ql_ny_livestream_blu (08.06.2016)  http://www.conceptdraw.com/examples/web-architecture-diagram (10.06.2016)  https://www.type2designs.com/why-use-amazon-web-services-aws/ (10.06.2016)  https://aws.amazon.com/de/free/ (10.06.2016)  https://aws.amazon.com/de/ec2/ (10.06.2016)  https://aws.amazon.com/de/s3/ (10.06.2016)  https://aws.amazon.com/de/cloudfront/streaming/ (08.06.2016)  https://aws.amazon.com/de/cloudfront/ (10.06.2016)  https://aws.amazon.com/de/rds/ (10.06.2016) 102

104. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL LIST OF REFERENCES  https://aws.amazon.com/de/dynamodb/ (09.06.2016)  http://aws.amazon.com/de/solutions/case-studies/bmw/ (08.06.2016)  https://aws.amazon.com/de/elasticbeanstalk/ (10.06.2016)  https://aws.amazon.com/de/iam/?nc1=f_m/ (10.06.2016)  https://aws.amazon.com/de/cloudwatch/ (10.06.2016)  https://aws.amazon.com/de/big-data/use-cases/ (08.06.2016)  https://www.amazon.com/b?node=8947548011 (10.06.2016)  http://www.tweaktown.com/news/37403/amazon-hiring-engineers-for-designing-its-own-arm-powered-server- chips/index.html (12.07.2016)  http://www.se-radio.net/2006/12/episode-40-interview-werner-vogels/ (08.06.2016)  http://cmuscm.blogspot.de/2014/01/amazon-to-apply-demand-forecasts-to.html (08.06.2016)  http://queue.acm.org/detail.cfm?id=1142065 (08.06.2016)  http://arstechnica.com/information-technology/2016/04/amazon-cloud-has-1-million-users-and-is-near-10-billion-in- annual-sales/ (10.06.2016)  https://www.amazon.com/Amazon-Echo-Bluetooth-Speaker-with-WiFi-Alexa/dp/B00X4WHP5E (11.06.2016)  https://developer.amazon.com/appsandservices/solutions/alexa (10.06.2016)  https://developer.amazon.com/public/solutions/alexa/alexa-skills-kit (09.06.2016) 103

105. © Prof. Dr. Michael C. Hadamitzky  ADVANCED MASTER SEMINAR “LOGISTICS CASE STUDIES” Source: http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg, (06.06.2016) 104 “You can do the math 15 different ways, and every time the math tells you that you shouldn’t lower prices because you’re going to make less money. That’s undoubtedly true in the current quarter, in the current year. But it’s probably not true over a 10-year period, when the benefit is going to increase the frequency with which your customers shop with you, the fraction of their purchases they do with you as opposed to other places. Their overall satisfaction is going to go up.” Key Findings in Financials Simon Keller (B.A.) & Benjamin Nonnenmann (B.A.)

106. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL FINANCIALS - KEY FINDINGS  The growth in revenue is not reflected in profits  The income increase is partially offset by investments that target longer-term strategic goals  The strong growth course is financed by debt and equity  Payments from operational cash flows in the last 3 years were high enough to pay all the expenditures for investments  Generated cash will be invested in the further growth of Amazon  no dividends on shares are paid  In 2015 the operational cash flow was high enough to cover the investment expenditures and debts repayment  Increase in cash and cash equivalents  Most recently leading investment banks recommend to buy and overweight Amazon shares Rising share price and operating cash flow reflect the good development of Amazon 105

107. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL FINANCIALS – QUOTES FROM THE FINANCIAL SECTOR Leading analysts recommend to buy Amazon shares due to good business development Source: http://www.finanzen.net/analysen/Amazon-Analysen (11.06.2016) 106 J.P. Morgan Chase & Co.: Recommendation: “Overweight” Reasons:  Quarterly numbers above expectation Goldman Sachs: Recommendation: “buy” Reasons:  Profitability above expectations  Accelerated growth

108. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL DEVELOPMENT OF TOTAL REVENUES 2004 TO 2015 The total revenues increase exponentially Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/75292/umfrage/nettoumsatz-von-amazoncom-seit-2004, (30.05.2016) 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 𝑔𝑟𝑜𝑤𝑡ℎ (𝑔) = 𝑅(𝑡1) − 𝑅(𝑡0) 𝑅(𝑡0) 6.92 8.49 10.71 14.84 19.17 24.51 34,20 48.08 61.09 74.45 88.99 107.01 0 20 40 60 80 100 120 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 RevenueinBillionUSD + 1446,39% 107

109. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL REVENUES BY REGIONS IN % 59.04 14.15 9.79 10.26 6.75 61.56 13.39 9.38 8.89 6.85 65.92 11.04 8.44 7.71 6.87 0 10 20 30 40 50 60 70 USA Germany Great Britain Japan Rest of the World 2013 2014 2015 RevenueinBillionUSD The increasing proportion of revenue in the United States is a result of the successful business development in the US market Source: Own diagaram based on Amazon Annual Report 2015, p. 69. 108

110. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL ESTIMATED DISTRIBUTION OF THE GROSS GOODS VALUE 0 18 123 12 30 89 0 20 40 60 80 100 120 140 2005 2010 2015 Prime members other customers Amazon Prime is the most important marketing tool and a major success factor Source: Own diagram based on Frankfurter Allgemeine Zeitung, in: http://www.faz.net/aktuell/wirtschaft/wirtschaft-in-zahlen/grafik-des-tages-so-wichtig-sind-prime-kunden-fuer-amazon-14291839.html, (18.06.2016) The order of volume of a Amazon Prime member increases on a average of 100% per customer in the first year of membership In 2015 Prime members were responsible for nearly 60% of the gross goods value The average revenue per Amazon Prime member in the United States is 1500 USD per year In comparison the average revenue per other customer is 625 USD per year 109 RevenueinBillionUSD

111. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SALES PER HEADCOUNT 627,516 576,321 524,342 420,977 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2012 2013 2014 2015 In relation to total revenue the sales per headcount disproportionately dropped Source: http://www.onvista.de/aktien/fundamental/Amazon-Aktie-US0231351067 (22.07.2016) 110 RevenueinUSD

112. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PROFIT Large investments are the main contributors in the resulting small profits Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/75293/umfrage/nettoeinnahmen-von-amazoncom-seit-2004, (30.05.2016) 588 359 190 476 645 902 1,152 631 -39 274 -241 596 -400 -200 0 200 400 600 800 1000 1200 1400 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Profit/LossinMillionUSD 111

113. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PROFIT Losses were caused by high investments in business development & new products in 2014 Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/204386/umfrage/gewinn-von-amazon-quartalszahlen/, (02.06.2016) 177 142 199 384 299 207 231 416 201 191 63 177 130 7 -274 97 82 -7 -41 239 108 -126 -437 214 -57 92 79 482 513 -600 -400 -200 0 200 400 600 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Profit/LossinMillionUSD Firephone Flop 112

114. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL REASONS FOR THE LOSS IN Q2 AND Q3 2014 Loss was caused by high investments in business development & new products in 2014 Source: cf. Handelsblatt, in: http://www.handelsblatt.com/unternehmen/handel-konsumgueter/quartalszahlen-amazon-verfehlt-geschaeftserwartungen/10883998.html, (02.06.2016) cf. Schmieder, Jürgen, in: http://www.sueddeutsche.de/wirtschaft/verlust-trotz-milliardenumsatz-anleger-im-amazon-dilemma-1.2063058, (02.06.2016) cf. Zeit online, in: http://www.zeit.de/wirtschaft/2014-10/amazon-onlinehaendler-verlust, (02.06.2016) Introduction of the Firephone Reasons for the loss in Q2 and Q3 2014: Investment in the development of new products and services High capital lockup High depreciation rates on new products and services 113 2014

115. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL PROFIT FROM 2009 TO 2016 The boom of Amazon Web Services results in high profits Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/204386/umfrage/gewinn-von-amazon-quartalszahlen/, (02.06.2016) 177 142 199 384 299 207 231 416 201 191 63 177 130 7 -274 97 82 -7 -41 239 108 -126 -437 214 -57 92 79 482 513 -600 -400 -200 0 200 400 600 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Profit/LossinMillionUSD Booming Cloud Services 114

116. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL REASONS FOR THE SUCCESS IN 2015 The boom of Amazon Web Services results in high profits Source: cf. Amazon Annual Report 2015, p. 18ff. Booming Cloud Services: Amazon Web Services (AWS) Reasons for the success in 2015/2016: Revenue growth of 64% and operating income of 604 Mio. USD Profitable commercial transactions in North America Record profit in quarter I 2016 115 2015 2016

117. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL MARKETING EXPENSES 263 344 482 680 1,029 1,630 2,408 3,133 4,332 5,254 0 1000 2000 3000 4000 5000 6000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ExpensesinMillionUSDIncreasing Marketing expenses are constant in relation to revenue over the last 3 years with apr. 5%  Marketing expenses in relation to revenue are constant over the last 3 years (5%)  Main Reasons for the total increase: – expenses for online-marketing channels and the relating personal expenditure  The most important marketing tool according to the chief executive board is Amazon Prime (and similar programs) – leads to customer loyalty – The relating costs for Amazon Prime are not considered in marketing expenses Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/297849/umfrage/entwicklung-der-kosten-von-amazon-zur-auftragsabwicklung, (30.05.2016) Source: cf. Amazon Annual Report 2015, p. 29. 116 The most important marketing tool Amazon Prime is not included in the marketing expenses

118. © 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL SHIPPING COST IN RELATION TO REVENUE IN % 9.3 10.3 11.6 0 2 4 6 8 10 12 14 2013 2014 2015 + 1% + 1,3% In relation to total revenue the shipping cost disproportionately increased Source: Own diagram based on Amazon Annual Report 2015, p. 26. 117 Shippingcostinrelationtorevenuein%