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Amazon.com Strategic Analysis
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  1. 1. Darshan Shekhar Nikita Mehta Swati Shrivastava Tony k Roy Vikrant Saraph 1
  2. 2. Index  Company profile  Business model  Driver of the company  Supply chain of amazon.com  Distribution channel  Partners  Amazon technology  Demand management 2
  3. 3. Company Overview Amazon.com, Inc. (NASDAQ: AMZN) is an American-based multinational electronic commerce company. Headquartered ---Seattle, Washington. America's largest online retailer. Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it online In 1995. It started as an online bookstore. With 2.5 million titles, it became the “Earth’s Biggest Bookstore”. 3 3
  4. 4. 4
  5. 5. Products  Books  Movie, Music and Games  Digital Download  Kindle  Computer And Office  Electronics  Home and garden  Grocery, Health and beauty  Toys, kids and baby  Clothing, Shoes and jewelry  Sports and outdoors  Tools, Auto and industrial 5
  6. 6. Business Model  Amazon-to-Buyer Sale Approch  Multi level E-Commerce • Customer Tracking  It operates 7 websites that support their business operation globally and offers 20 million items for sale. 6
  7. 7. Models for Web Application There are 2 kind of web models :-  Conceptual model  Structural model 7
  8. 8. There are four primary drivers for growth: 1. Product focus 2. Customer focus 3. Technology focus 4. Distribution focus 8
  9. 9. Supply chain of amazon.com Customer Pull Customer Pull Amazon Retailer Warehouse Distributor Publisher Publisher 9
  10. 10. Multi-Tier Inventory Model Inventory Aggregation respond to fluctuation in demand with lower level of safety stock. 10
  11. 11. Partners  Large Partners  Small Partners  Trusted Partners 11
  12. 12. Partners 12
  13. 13. Technology Partners 13
  14. 14. Amazon Technology  It has world’s largest Linux Database, with a total capacity of 7.8 terabytes, 18.5 TB and 24.7 TB respectively.  The Central Amazon Data warehouse is made up of 28 Hewelett Packard server, with four CPUs per node, running Oracle 9i database software.  The architecture handles millions of back-end operations and third party seller queries. 14
  15. 15. Five international stores of Amazon.com Amazon Canada, Amazon France, Amazon UK, Amazon Japan, Amazon Germany. Reasons:  The Mother-Tongue Issue  The Shipping Issue  The Currency Issue  The Local Product Issue  The National Pride Issue  Proper inventory control 15
  16. 16. Amazon Technology Architecture 16
  17. 17. How deals the supply chains with fluctuating demand? Amazon.com carries high-demand title in inventory, whereas it purchases low- demand titles from distributor in response to a customer orders . Reduction in various costs like ;- - Inventory cost - Facility cost - Transportation costs - Information costs 17
  18. 18. Thank you !!! 18
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