Amazon's vision is to be the most customer-centric company and offer low prices across a wide selection of products. The company pursued an aggressive growth strategy by investing heavily and expanding into new product categories and businesses. Amazon has seen strong international growth and now generates nearly half of its sales outside of North America.
This was done as part of a coursework for the Business Model class at Heriot-Watt University.
It was used only in educational services.
I hope you enjoy it and learn something form it, because we certainly learned a lot.
This was done as part of a coursework for the Business Model class at Heriot-Watt University.
It was used only in educational services.
I hope you enjoy it and learn something form it, because we certainly learned a lot.
Inside view of Amazon brand analysis, this can help us understand why they are becoming a clear leader in Indian market.
This was presented in IIFT college by Ritesh Tando.
Snapdeal, Flipkart comparison is there. created by consultant with two years of indepth knowledge of the market.
MakeSense Africa: Food Security Impact report 2017Victoria Peter
Global hunger statistics give much reason to be concerned. However, a close look on developments on the ground, shows much reason to be optimistic. Here are 7 overarching trends from West-Africa, and dozens of grassroots innovations that gives us reasons to start re-writing our story about global hunger.
We can do so by rethinking traditional roles. Through a collaborative effort, roles, skills and spheres of influence of NGOs, Beneficiaries, Business, Consumers and Government can be redefined.
Inside view of Amazon brand analysis, this can help us understand why they are becoming a clear leader in Indian market.
This was presented in IIFT college by Ritesh Tando.
Snapdeal, Flipkart comparison is there. created by consultant with two years of indepth knowledge of the market.
MakeSense Africa: Food Security Impact report 2017Victoria Peter
Global hunger statistics give much reason to be concerned. However, a close look on developments on the ground, shows much reason to be optimistic. Here are 7 overarching trends from West-Africa, and dozens of grassroots innovations that gives us reasons to start re-writing our story about global hunger.
We can do so by rethinking traditional roles. Through a collaborative effort, roles, skills and spheres of influence of NGOs, Beneficiaries, Business, Consumers and Government can be redefined.
SKIM webinar "Product Portfolio and Revenue Optimization"SKIM
Ever wondered if you should increase your product price or decrease your pack size? Among the many options your pricing, strategy, and research teams face in a competitive consumer environment, this is one of the most common. In our webinar we explore ways to optimize your pricing and your product portfolio composition to maximize overall revenue.
Overview of the process for strategic and tactical execution of brand building. Somewhat centered on a services and ";OpCo" layered organization, so while the vocabulary may change, the process is largely intact.
ECR Europe Forum ‘08. Shopper-based assortment planningECR Community
Shopper-based assortment planning
Intended for people responsible for translating category strategy into category assortment plans, this course will enable participants to describe the inputs, outputs and processes needed for a category that balances the requirements of retailers, suppliers and shoppers alike. It will cover:
• What are we trying to achieve with assortment plans and what needs to be in place?
• How can retailers and suppliers work together to build assortment?
• What information and research is needed to build a shopperbased assortment?
• What are the key steps to building a shopper-based assortment?
• What practical tools can be used in the process?
Facilitated by The Partnering Group
http://trinityp3.com/
As marketing becomes more complex and diversified, driven by technology, marketers are finding themselves managing increasingly larger and more complex agency and supplier rosters. The traditional procurement approach of developing supplier panels based on capabilities and services no longer works in this complex environment. This presentation provides a strategic process for developing a roster of suppliers aligned to the marketing strategy which delivers alignment of the suppliers to that strategy.
Strategy Development
Week 3
Objectives Week 3Develop strategic objectives.
Create organizational objectives and goals.
Articulate value proposition, key activities, resources, and channels to market.
Quote……
“Successful business strategy is about actively shaping the game you play, not just playing the game you find.”
Adam M. Brandenburger and Barry J. Nalebuff
Quote……
“The essence of strategy lies in creating tomorrow’s competitive advantage faster than competitors mimic the ones you posses today”
Gary Hamel and C.K. Prahalad
Quote……
“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value”.
—Michael E. Porter
Quote……
“Winners in business play rough and don’t apologize for it. The nicest part of playing hardball is watching your competitors squirm”
—George Stalk, Jr., and Rob Lachenauer”
Long-Term ObjectivesStrategic managers recognize that short-run profit maximization is rarely the best approach to achieving sustained corporate growth and profitability.Strategic decision makers confronts:
Should they eat the seeds to improve the near-term profit picture and make large dividend payments through cost-saving measures such as laying off workers during periods of slack demand, selling off inventories, or cutting back on research and development?
Or should they sow the seeds in the effort to reap long-term rewards by reinvesting profits in growth opportunities, committing resources to employee training, or increasing advertising expenditures?
Long-Term ObjectivesTo achieve long-term prosperity, strategic planners commonly establish long-term objectives in seven areas: Profitability Competitive PositionEmployee RelationsTechnological Leadership Productivity – In-OutEmployee DevelopmentPublic Responsibility
Qualities of Long-Term ObjectivesWhat distinguishes a good objective from a bad one? What qualities of an objective improve its chances of being attained?There are five criteria that should be used in preparing long-term objectives:
Flexible
Measurable
Motivating
Suitable
Understandable
The Balanced ScorecardThe balanced scorecard is a set of measures that are directly linked to the company’s strategy
Developed by Robert S. Kaplan and David P. Norton, it directs a company to link its own long-term strategy with tangible goals and actions.
The scorecard allows managers to evaluate the company from four perspectives:
financial performance
customer knowledge
internal business processes
learning and growth
The Balance Scorecard
The Balance Scorecard
The Balance ScorecardPerspectiveObjectiveKPIGoal for 2014FinanceBecome industry Cost Leader% Reduction in Cost per Unit20%Utilization of AssetsUtilization Rate7%Increase Market ShareMarket Share30%CustomerCustomer Retention% Retention 75%On Time Delivery% of On Time Delivery90%Zero Defects% of Good Quality.
4. Amazon’s vision is to be earth’s
most customer centric company;
to build a place where people
can come to find and discover
anything they might want to buy
online. (They list this as their
mission as a combination
mission/vision on their site).
5. Objective
• ‘Not to discount a small number of products for a
limited period of time, but to offer low prices
everyday and apply them broadly across our entire
product range.’
Core Value Proposition
• Price
• Convenience
• Selection
Strategy
• ‘To ‘Get Big Fast’ by investing aggressively in new
product categories and new businesses, by
spending money on brand awareness and getting
new customers.’
6. Timeline
• 1994
– Amazon.com established by
Bezos
• 1995
– Expand product line
• 1999
– Amazon invest into internet
companies
• 2000
– Dot-Com crisis
• 2003
– Amazon become successful in
partnership and cross selling in
very high way that they start
running other retailers web-sites
• 2007
– Kindle
7. Key Players
• Jeff Benzo
– Founder of
Amazon.com
• Amazon.com
– Global internet e-
commerce retailers
• Competitors (eBay)
– Competing Global
internet e-commerce
retailer, and auctioning
• Customers
– Local online consumers
8. Main Issues
• Political
– Challenges from Government
policies and competitors
towards expanding in the
market
• Competition
– eBay in rapid growth making
competition more challenges
• Management
– Market fluctuations demands
flexible management strategies
• Financial
– Dot-com crises left Amazon
rethink it’s financial position
• Marketing
– Cut back in promotional
advertisement in marketing
12. The 6 C’s
1. Content: Amazon.com has one of the best
content friendly sites on the web
2. Customization: “One-click” Amazon.com has
developed specialized approaches that
enables them to make a more personalized
approach CRM (customer relationship
management)
3. Community: Amazon Communities have
evolved just as the business has, Amazon
offers several thousand communities
4. Convenience: Amazon.com has been a front-
runner in offering its customers almost every
product at their fingertips.
5. Choice: Amazon partially developed the
availability of choice online by offering its
customers all the tools to choose between
products based on reviews, and product
trials.
6. Cost reduction: Amazon offer some of the
22. Amazons Approach
Segmenting-Targeting-Positioning (STP-Model)
• Three steps to target group oriented marketing
Market segmentation Target market determination Positioning
Determination of Development of assesment Development of a lasting
1 segmentation variables/
segmentation of Market
guidelines for the determination
of attractiveness. Finally the
competition position and
determination of tasks and
selection and concentration on performance program for
Development of one or more segments. selected target segments.
2 resulted
segment profile
Estimation of
3 attractiveness of each
Segment
4 Selection of target
segments
Zoning of market in clear
defined target groups / Customer Development of
groups with own products and
marketing-mix.
5 possible positioning
concepts
Selection and
6 Communication of
positioning concept
Time
23. Revenue Model and streams
• Investment: Amazon invest heavily on
key partners in order to reduce costs
• Amazon Web Services: Cloud program
for online storage
• Amazon Prime: Memberships for
discounts and trials
• Amazon Publishing: On demand
publishing
• Subscribe & Save: Subscriptions for
discounts on daily deals
• AmazonBasics: Product development
(Cd’s, Cables, Software)
• CPM, CPC, Sponsorship, Affiliate
programs, transaction fee revenue
• E-mail marketing
24. Cost Leadership
• Amazons sustainable competitiveness is low cost in
differentiation through 8 methods
Economies of scale Economies of scope Experience effects
Economies of learning Product design Process design
Residual effects
Capacity utilization Input-Costs the operational
effectiveness
Cost leadership
Business week 2007, May
26. Barriers to Entry (High Buyers (High threat)
threat) Consumers have
High Competition – Leads high switching and
to resource bargaining power.
restriction/Price War
Suppliers (low/ medium) Substitutes (Low
Possible forward threat) Mail Orders
Integration
27. S-Curve Concept - Life Cycle
• Representation of the life cycle of technology in the course of time
Basic technology
Pace setting
technology
time
development phase growth maturity age phases
Life cycle of a technology
Given the current state of the market it is imperative to foresee the future and
potential threats of new technology
Everett Rogers, 962 book Diffusion of Innovations
28.
29. Marketing and Operations
Objectives and Indicators Strategy Implementation (Marketing
• Strategic and operational objectives Mix)
Financial objectives • Product and pricing policy
Market-and customer-related objectives • Communication and distribution policy
3. Strategy
1. Analysis 4. Mix 5. Control
2. Target
Strategic Analysis Strategy Selection and Combination Success Control (progress and results)
• Market and environment • Competitive strategies • Effectiveness of marketing tools
analysis • Portfolio strategies • Performance of the people involved
• Customer and competitor • Positioning strategies • Profitability of the chosen
analysis • Innovation strategies products, markets and (customer
success estimation)
Principles of Marketing (Kotler) Chapter 18 - Marketing in the Digital Age
33. Management
• In order to maintain control
and focus Amazon should
decentralize control and
develop more of a horizontal
structure
• The numerous customer care
units amplify the fact that
consumers (buyers) are a main
concern therefore Amazon
should focus its strategies
towards the consumers by
investing in advertising and
offering a variety of new
products/services
34. Amazon.com’s CEO Jeff Bezos believes in six core
values which purple Amazon to be one of the
world best multifunctional organizations
Customer Bias for
obsession action
Ownership
Frugality
High hiring
bar Innovation
35. Recommendations
• Amazon should create partnerships with search engine
providers and invest in R&D.
• Amazon should form a merger with eBay and move its
head office to countries with less sever legal regulation.
• Amazon should open up its own brick and mortar stores
involved in online ordering for non-savvy Internet and
technology users.
• Amazon should invest in PR marketing and it should form
B2B alliances with brick and mortar stores.
• Critical Assessment of Recommendations
• (Identifying the strengths and weaknesses of each
recommendation in order to make a justifiable decision.)
37. Works Referenced
• Amazon.com
• Principals of marketing, Philip Kotler
• Cult branding, 2008 , Levitt
• 12manage: Management Communities, 2008., Five Competitive Forces., [Online]. Available
at:http://www.12manage.com/methods_porter_five_forces.html [Accessed 02 Jan 2008]
• Bange. V. (2007), “ONLINE SECURITY: Legal issues,” New Media Age, London, Jan 11, pg. 10
• Bartlett, C.A., and Ghoshal, S. (1989) Managing across borders: The Transnational Solution,
• New York: Harvard Business School Press.
• Cavanaugh, T, 2007, Amazon.com as the librarian's assistant for book analysis; Multimedia &
• Internet@Schools, Pg. 24(4) Vol. 14 No. 1; 1st January 2007 [Accessed on 23rd Jan 08
• from
• http://www.lexisnexis.com/uk/nexis/results/docview/docview.do?risb=21_T2899864407
• &format=GNBFI&sort=BOOLEAN&startDocNo=1&resultsUrlKey=29_T2899864410&cisb=
• 22_T2899864409&treeMax=true&treeWidth=0&csi=140610&docNo=4]
• Computing 2007 ‘Online sales top £3bn’
• http://www.computing.co.uk/computing/news/2171169/online-sales-top-3bn
• EMarketer Online, Ten Key Online Predictions for 2008
• http://www.marketingcharts.com/direct/ten-key-online-predictions-for-2008-2924/
• [accessed 15.02.08]
• Farrell, D., Gersch UA., Stephenson, E., (2006) “The Value of China’s Emerging Middle Class”,
• The McKinsey Quarterly.
• Howells, Jan, 1998 "Walmart lawsuit against Amazon.com could be a blow for ecommerce".
• Global Newswire, Oct 19 1998 [accessed: 23 Jan 2008]
• Internet World Stats, 2007. INTERNET USAGE STATISTICS, [Online]. Available at:
• http://www.internetworldstats.com/stats.htm (Accessed 29 Dec 2007)
• Management & Computer Security. Bradford: 1998. Vol. 6, Iss. 3; pg. 128
• Laseter, T., Houston, P., Wrigth, JL., Park, JY. (2000), “Amazon your industry: Extracting value
• from the value chain." Strategy+Business, Issue 20, September 2000 [Accessed: 23 Jan
• 2008 http://www.strategy-business.com/press/16635507/10479]
38. AIDA - Action Principle
Physical reaction Action
(economical) The customer buys the product
The desire for the product
Desire
is awakened (demand)
Psychological reaction
(pre- economical) The customer is interested in
Interest the product
Attention of the customer
Attention for the product is excited
39. Meaning
Language History Symbols Sensorics
Style Tell stories Protagonists Sensorial experience
Rhetoric Show episodes Figures Stimulation of senses
Wording Places of action
Only the interaction of these four Codes makes the brand
communication sustainably successful
40. Worldwide Sales Mix
Q1 ’04 – Net Sales $5,710 MM Q4 ’09– Net Sales $24,509 MM
2% 3%
z
22% 45%
76% 52%
Source: www.amazon.com
WW Media (Books, Music, Movies, Video Games and Consoles, Software
and Digital Downloads)
WW Electronics & Other General Merchendise (EGM)
WW Other (Marketing and Promotional Activities, Amazon Web
Services, Amazon Enterprise Solutions, & Co-branded Credit Cards)
41. International Sales
MM
$10,000
$8,938
$9,000
$8,000
$7,000 $6,740
$6,000 • 2008 International sales
47% of WW sales, up from
$5,000
45% in 2007
$4,000 • Shipments to over 200
$3,074
$3,000 countries
$2,000
$1,000
$0
2004 2005 2006 2007 2008
Source: www.amazon.com