marketing management

1. amazon
RABEEA UMAIR

2. Introduction
• Amazon.com is an American multinational technology
company which focuses on e-commerce, cloud
computing, digital streaming, and artificial intelligence.
• Amazon was founded by Jeff Bezos from his garage
in, Washington, on July 5, 1994.
• It has expanded into a multitude of product categories

3. Timeline
Started off as
an online
Bookstore
1994
Started Amazon
Fresh
2006
Introduced Toys
and Electronics
1999
Launched
Amazon Web
Services
2007
First Profit of 5
million
2000
Released Kindle
2007
World’s largest
online retailer
2018

4. Subsidiaries

5. Market Share
41
44
6.6
4.2 4
E - Commerce
Amazon Others Walmart
Ebay Apple
As of October 2021, Amazon accounted for 41 percent of the U.S. e-commerce market, making it by far the
leading online retailer the country.
32
20
9
6
33
Cloud Computing
AWS Azure
Google Cloud Alibaba Cloud
Others

6. Financial
Analysis
• In last five years, revenue increased by 163% from $178 billion
in 2017 to a whopping $469 Billion in 2021.
• In 2021 alone, the revenue grew by 22% compared to 2020.
• online shopping business is the major source of revenue
• Amazon Web Services (AWS) business contributes hugely to
Amazon’s revenue stream.

7. Operations
• Majorly, Amazon operations,
from the revenue perspective,
can be divided into three major
segments
• Unsurprisingly, a big part of
Amazon’s revenue comes from
North America.
• Internationally, the company’s
revenue increased from $104.4
billion in 2020 to $127.7 in
2021 as Amazon Prime has
become a huge success in some
of the Asian and European
markets.

8. Workforce
• In 2021, Amazon employed
1,608,000 full and part-time
employees which increased 24%
over the year.
• Pandemic-filled web based
shopping, combined with the
normal pulverize of occasion deals,
has driven Amazon to add 400,000
positions this year, pushing its
absolute work force than 1 million
unexpectedly.

9. Acquisitions
• Amazon has been harnessing
aggressively its merger and
acquisition strategy.
• 2021 saw the second-biggest
acquisition of Amazon when
it acquired MGM for $8.45 billion
to boost its streaming services
Prime Video.
• In June 2017, Amazon acquired
grocery giant Whole Foods for a
whopping $13.7 billion.
• Internationally, Amazon expanded
its operations by acquiring other
businesses such as Souq.com in
the middle-east for growing e-
commerce in the region.

10. Supply Chain
• Game Changing Delivery Strategy
• Outsourcing Inventory Management and
insourcing logistics
• Push – Pull Strategy for Supply Chain success
• Automation
• Drone based delivery system

11. During COVID-19
• Amazon remains one of the few
companies to benefit from the
coronavirus pandemic.
• The flood of online orders propelled
Amazon to record sales during the
second quarter.
• The company brought on more than
175,000 new warehouse and delivery
workers

12. During Covid-19
• Bezos is nearly 80% richer (79.8%) than he was
before the pandemic.
• Amazon profits increased nearly 200% since start of
Covid-19.
• Amazon’s supply chain was hit hard, resulting in
delivery delays and out-of-stock notices.
• Amazon Web Services division grew 29% in 2020.
• Amazon sold nearly US$100 billion worth of products
in the third quarter of Covid-19.
• Amazon’s front-line employees had access to on-site
COVID-19 vaccinations.

13. Issues
Amazon has been criticized for:
• Tax Avoidance
• Toxic Work Culture
• Anti Competitive Behavior

14. Recommendations
• Amazon is lacking in developing
countries as it’s a chance to
exploit their rising economy.
• Amazon’s sponsored ads is just
under 10%, invest more.
• Expand Prime Services.
• Better tax reporting

15. • https://www.cnbc.com/2020/09/29/how-amazon-managed-the-coronavirus-crisis-and-came-out-
stronger.html
• https://www.greyb.com/amazon-business-strategy/
• https://www.techtarget.com/whatis/definition/Amazon
• https://www.spglobal.com/marketintelligence/en/news-insights/blog/amazon-ecommerce-sales-soar-
amid-covid19
• In 2021, the American multinational e-commerce company, headquartered in Seattle, Washington,
employed 1,608,000 full- and part-time employees.
• https://www.thebalancesmb.com/how-amazon-is-changing-supply-chain-management-4155324
Sources