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Amazon ppt. (final)


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Amazon ppt. (final)

  1. 2. Search Suggestions Juan Pablo Handall Suryanata Hatta Tim Averill Carlos Alcantara Rodrigo Cuesta Nicolas Staton Arnab Saharoy Ignacio Muñiz Amazon Presentation
  2. 3. TABLE OF CONTENTS Showing 1 – 4 of 25 Results Choose a Department to enable sorting <ul><ul><li>Introduction of Amazon </li></ul></ul><ul><ul><li>History & Facts </li></ul></ul><ul><ul><li>Growth </li></ul></ul><ul><ul><li>Financial Performance </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>2. User Experience Assessment </li></ul></ul><ul><ul><li>Navigation & Customization </li></ul></ul><ul><ul><li>Reminders, Reviews & Product viewing/sampling </li></ul></ul><ul><ul><li>Mobile App & Wish List </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>3. Key Learning & Pain Points </li></ul></ul><ul><ul><li>Innovation, unlimited options & Adaptation </li></ul></ul><ul><ul><li>Credit Card, Fraud Risk, Standardization </li></ul></ul><ul><ul><li>Human contact & Cluttered website </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>4. Conclusions </li></ul></ul><ul><ul><li>New technologies & Trends </li></ul></ul><ul><ul><li>Website design </li></ul></ul><ul><ul><li>Vision & Strategic Acquisitions </li></ul></ul><ul><ul><li> </li></ul></ul>
  3. 4. <ul><li>Multinational electronic commerce company </li></ul><ul><li>Headquarters in Seattle and Luxembourg </li></ul><ul><li>The world ’s largest Online retailer </li></ul>WHAT ’ S AMAZON?
  4. 5. <ul><li>Founded by Jeff Bezos in 1994 and went online in 1995 </li></ul><ul><li>Named after the Amazon River : a place that is “exotic and different” </li></ul><ul><ul><li>it was almost called Cadabra as in Abracadabra, until someone asked, is the name cadaver? </li></ul></ul><ul><li>Started as an Online Bookstore that later diversified (Cd ’s, DVD’s, software, etc.) </li></ul><ul><li>The logo: evolved from a river to a smiling arrow ( pointing A to Z ) forming a smile, saying &quot;we're happy to deliver anything, anywhere.” </li></ul><ul><li>It went from a tiny startup operating on second-hand computers in a garage to a global company with 12 major retail websites . </li></ul><ul><li>Ranked Global Website #11 – Sites linking in 1,071,384 ( ) </li></ul>HISTORY & FACTS
  5. 6. <ul><li>50% of Amazon revenues lie outside the U.S .  whereas WalMart, Sears, Target, etc. have struggled in foreign markets </li></ul><ul><li>Half of all Amazon book sales are digital , creating growth where most competitors have stagnated and declined </li></ul><ul><li>Amazon developed game-changing technology and capabilities allowing it to do what customers wanted, but other retailers were unwilling to create </li></ul>HOW DID THEY MANAGE TO GROW?
  6. 7. USER EXPERIENCE – WEBSITE NAVIGATION <ul><li>Product search and online purchasing. </li></ul><ul><li>Placement of navigation elements critical. </li></ul><ul><li>Sharp colors, gradients and subtle 3-D effects make vital user tools stand – out. </li></ul><ul><li>The user is able to quickly find and purchase products. </li></ul><ul><li>The seller is able to quickly process the online purchases. </li></ul>
  7. 8. USER EXPERIENCE - CUSTOMIZATION <ul><li>Use of cookies, data mining and algorithms to track users shopping habits and searches </li></ul><ul><li>Dynamically customizes the users experience based on prior searches, page views, wish lists, purchases </li></ul><ul><li>Edit search history. </li></ul><ul><li>Changes are instantaneous </li></ul><ul><li>Customized/editable experience </li></ul><ul><li>The user does not feel like the content is being forced on them </li></ul>
  8. 9. USER EXPERIENCE – ¨WHY SHOP WITH US¨ REMINDERS <ul><li>Reminders about why the user should purchase on Amazon and not elsewhere. </li></ul><ul><li>Listings of MSRP (manufacturers suggested retail price and price comparisons) </li></ul><ul><li>Strong sales incentives </li></ul>
  9. 10. USER EXPERIENCE – CUSTOMER REVIEWS <ul><li>Large customer base </li></ul><ul><li>Active review community </li></ul><ul><li>Simple and powerful features to go through views and analyse opinions. </li></ul><ul><li>Easily access both positive and negative reviews </li></ul><ul><li>Customer comfort </li></ul><ul><li>Allow customers to review every step of the buying process. </li></ul>
  10. 11. USER EXPERIENCE – PRODUCT SAMPLING/VIEWING <ul><li>Challenges of online purchasing – no feel and inspection product. </li></ul><ul><li>Detailed close up pictures of the product from all angles. </li></ul><ul><li>Use “ look inside ” and “ Get a sample ” features for books </li></ul>
  11. 12. USER EXPERIENCE – MOBILE APPLICATION <ul><li>Apps for all smart phone operators and tablets </li></ul><ul><li>Fast and convenient good use of bar codes and pictures </li></ul><ul><li>Amazon Appstore for Android </li></ul>
  12. 13. USER EXPERIENCE - WISH LIST <ul><li>Add items off other websites </li></ul><ul><li>Public wish lists – Birthdays, events </li></ul><ul><li>Opportunity to link with social media </li></ul>
  13. 14. USER EXPERIENCE – CHECK OUT <ul><li>Online average buying time is 4 mins </li></ul>
  14. 15. KEY LEARNING POINTS <ul><li>The availability of products makes a big difference… </li></ul><ul><li>the sky is the limit!!! </li></ul>
  15. 16. KEY LEARNING POINTS <ul><li>Amazon ’s Ubiquity: </li></ul><ul><li>Excellent online positioning for product searches </li></ul>
  16. 17. <ul><li>Amazon has invested heavily in trends even when its investments were in areas where Amazon had no history, capability or expertise. </li></ul>KEY LEARNING POINTS
  17. 18. <ul><li>Adapt to the trends of the market </li></ul><ul><li>(print to digital) </li></ul>KEY LEARNING POINTS
  18. 19. <ul><li>Listen to your customer s needs, and care for what they want </li></ul>KEY LEARNING POINTS
  19. 20. <ul><li>They Adhere to the “long tail” selling model = selling a large number of unique items </li></ul>KEY LEARNING POINTS
  20. 21. <ul><li>Personalize your service and provide info to the customer </li></ul>KEY LEARNING POINTS
  21. 22. <ul><li>NOT A COMPLETE SOCIAL MEDIA INTEGRATION </li></ul><ul><li>Twitter & Facebook Account, but not integrated into the shopping experience. </li></ul>PAIN POINTS
  22. 23. PAIN POINTS <ul><li>CLUTTERED WEBSITE </li></ul>
  23. 24. <ul><li>NO HUMAN CONTACT </li></ul><ul><li>NO TRACKING WITH 3RD PARTIES </li></ul>PAIN POINTS
  24. 25. <ul><li>Credit card requirement </li></ul><ul><li>Fraud risk with 3rd party transactions </li></ul>PAIN POINTS
  25. 26. <ul><li>Amazon is not everywhere and differs from country to country </li></ul>PAIN POINTS
  26. 27. <ul><li>The shopping experience needs to keep up with new Technologies & Trends. </li></ul><ul><li>In website design a first concern is not being cool, but fulfillment of its purpose, which is… maximum sales. </li></ul><ul><li>Amazon ’ s willingness to go beyond the conventional wisdom of investing in its “ core ”   has been critical to its success. </li></ul><ul><li>The quality of the operations and logistics high standards are within the level of the online user experience making the Amazon brand stronger. </li></ul>CONCLUSIONS
  27. 28. “ A big piece of the story we tell ourselves about who we are, is that we are willing to invent ” Jeff Bezos: Comments on a shareholder meeting June, 2011
  28. 29. Q & A Sneak peak at the inside of
  29. 30. <ul><li>They may account for a third of all U.S. E-commerce sales , boast over 33,000 employees around the world and own such big names as IMDB, </li></ul><ul><li>Call the service desk you might get the CEO </li></ul><ul><li>3 Private brands (Pike Street, Pinzon, Strathwood) </li></ul><ul><li>A 3 Billion dollars order? </li></ul>
  30. 31. <ul><li>IPO May 15, 1997 </li></ul><ul><li>Amazon expected profits in 4 to 5 years from launch </li></ul><ul><li>Survived the dotcom crisis but was hit hard from a high of $100 to a low of $6 </li></ul><ul><li>First profits Q4-2001, they didn ’t see full year profits until 2003 </li></ul><ul><li>Revenues - $19.17B (2010) </li></ul>