Contents…!- Company Overview- Business Model- Additional Material: Articles
Early Beginnings…! Amazon.com sells lots and lots of stuﬀ!• Amazon was founded in 1995!• Jeﬀrey Preston "Jeﬀ" Bezos is the Chairman of Amazon.com! You can GET Anything & Everything at Amazon.com! SO WHAT DOES AMAZON.COM SELL?!
Founded in 1994 SeaDle, 2005: Pinzon USA 2006: Voted No.1 In Customer 1999: Amazon Service 2010:Amazon AucKon, Zshops Studios 2000: Amazon 2011: Marketplace 2007: Amazon Appstore Amazon MP3 Amazon Cloud Player Amazon Fresh Kindle Touch 2008: Film Went Public ProducKon, Amazon in 1997 Currency Converter
1.) Value Chain Analysis FIRM INFRASTRUCTURE: Central Customer Data Warehouse GINHR MANAGEMENT: Employee Unique BeneﬁtsTECHNOLOGY DEVELOPMENT: High Investments, Unknown AROpportuniKes, Hardware from HP MPROCUREMENT: Using SBU: BookSurge, DistribuKon Centers INBOUND OPERATIONS OUTBOUND MARKETING N LOGISTICS Good LOGISTICS & SALES SERVICE RGI Return Payment Close Discounts, unsold items System, 24 Proximity to Return Recommen to supplier, hour Motorways, Policy, Price MA daKons, Warehouse Reach for collect InteracKve Comparison customer OperaKon Speciﬁc shipping info. locaKons
Business Foundation and Model!Amazon.com uses a mulK‐leveled e‐commerce strategy
3.) Growth Strategies BUSINESS MODEL• Virtuous Cycle • $14 Billion Retail Machine • Direct‐to‐consumer Online Model • Reap Beneﬁts of Technology Expansion • Category Expansion • InternaKonal Expansion
4.) Market Segments SEGMENTATION• Based on Actual Purchase Behavior • Each new purchase slightly alters recommendaKons • CollaboraKve Filtering • Seller Customers: 1.3 million acKve customers • Developer Customers: Use Amazon Web Services • Loyalty Program: Amazon Prime (Fee Based)
5.) Value ProposiKonConvenience Price SYNERGISTIC EFFECT SelecHon Customer Service
What makes Amazon a Giant is in the Details? Customize Buyer’s Cookies Experience Customer Tracking Personal Shopper
Amazon’s Gold Box! Time‐sensiHve discounts. ANer a speciﬁed period of availability the oﬀer disappears.
6.) Revenue Model REVENUE• Online Bookstore to Online Shopping • Amazon Marketplace: ﬁxed price online marketplace • 64% revenue from books, music video • Amazon Advantage: 10‐15% of Sales • Aﬃliate Partnership MarkeKng ‐ Amazon pays commission to site owner • NegaKve operaKng cash ﬂow cycle ‐ Amazon is paid by customers before it needs to pay suppliers
Article 1! Amazon may beneﬁt as digital goods sales jump • Fastest growing category this holiday season • Kindle Fire Tablet ‐ $199 • Aggressive pricing – Volume Sales • Increasing availability of devices • Increasing Downloads • Trend expected to rise in 2012
Article 2 ! Amazon’s AWS Storage Gateway to connect with Cloud • Amazon Web Services announced the Gateway for reliable & Cost –eﬀecKve Storage on the AWS Cloud • Amazon ElasKc Compute Cloud: For addiKonal capacity during peak periods • Will reduce cost of data storage and compuKng infrastructure