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Amazon
- 1. Abhilash Alhad Juvekar Aravind KulasekharVankayala Binny Sodhi Krishna Sheshadri Mohi Shukla
- 2. Vision / Mission: Ourvision 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.
- 3. CORE VALUES: CustomerObsession Innovation Bias for Action Ownership High Hiring Bar Frugality
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- 5. Government Policies Environmenta l Factors Labour Laws General Environment Socio- Economic Technological status Shifts Consumer tastes
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- 7. Competition Customer Third Party Support Linkages Specific Environment Investment Advancement Environmen s in WWW t Internet Delivery Infrastructure Mechanism
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- 9. AMPLE SUBSTITUTES IN THREAT OF NEW THE MARKET INTENSE ENTRANTS COMPETITION, 1. Competitor retail BOTH ONLINE 1. Low Entry portals like EBay AND OFFLINE Barriers allows easy etc. entry of other 2. Online portals of players existing retail 1. Retail stores like 2. Existance of outlets like WalMart/Tesco/Relia Specialized walmart.com nce Fresh competitors. 2. Mom and Pop 3. Ease of entry and stores inverstment 3. Government Regulation SUPPLIER BARGAINING Amazon POWER CONSUMER BARGAINING 1. The POWER manufacturers control the supply to 1. Availability of Amazon. similar products at a cheaper price 2. Other third-party service providers like 2. Consumer delivery, cash Switching costs collection can also are low impact Amazon
- 10. a) Threat OfNew Competition
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- 12. Favorable Unfavorable I Strengths: Weaknesses: n Strong Brand Name Low Finance Performances t Strong Infrastructure Lack of language specific e High Quality Mgmt team website r Customer Service Support Risk of intro. of wrong new n Developed and Upgraded Tech. categories a Free Shipping l Shipping costs (high volume / weight products) E Opportunities: Threats: x Growth of Internet Users Competition t Construction of community of Weak Economic Condition e buyers Low Entry Barriers r Taxes prohibition Segments of population n E-commerce Expansion uncovered. a Several product categories with l high penetration
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- 14. STRATEGY: New management discipline to be incorporated through an ongoing process of innovation and renewal. . At its roots Amazon is built to transform. Embracement of transformational growth in its white space. Have a viable and innovative business model built around a market-changing customer value proposition and a radical profit formula. Transformed its business from direct sales to a sales-and-service model, aggregating many sellers under one virtual roof and receiving commissions from the other companies' sales.
- 15. Extracting new potentialmarkets: In 2002 Amazon launched a web services platform within five years the site used by Amazon's web-services platform had grown into the seventh-largest in the world. And Amazon kept going. Continuously renovating the company and its existing products. Company seized its white space when it devised a new value proposition, offering a commission-based brokerage service to buyers and sellers of used books. Moved into its white space again by developing a model to serve an entirely different customer: third-party sellers.
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- 17. RECOMMENDED STRATEGIES: • Strength:Strong Brand Name • Opportunity: Extensive Community of Buyers • Strategy: Amazon is a big brand as far as e-commerce is concerned. To sustain that image among new age internet users and to build an extensive community of buyers which we see as a future opportunity for Amazon. Social networking sites like facebook, twitter should be leveraged in creating an extensive community of buyers. • Strength: High Quality Management Team and Upgraded Technology • Opportunity: Growth of Internet users • Strategy: Asian countries like India as per our external opportunities analysis will see the maximum number of new internet users over the next decade. So collaborating with Internet providers and providing insight to people through various media to shop using internet and introducing language specific websites will facilitate shopping for the local customers.
- 18. RECOMMENDED STRATEGIES (CONTINUED) Weakness: Low Finance Performance Threat: Removal of tax-benefits on online sale. Strategy: One of the major strengths of Amazon is the pricing of its offerings thanks to the tax benefits to internet shopping endorsed by many governments. Ethical pitching for those governments across its markets which extend tax freedom for sale of products through internet should also be a long term strategy. Weakness: Risk of Introduction of wrong products/categories Threat: Competition from mushrooming companies Strategy: A wrong product introduced in the market will take a strong beating on the customer’s loyalty on Amazon. Though, Amazon has recently seen success with its kindle e-reader there always exist a risk of introduction of a wrong product. There should be a increase in spend on Marketing Research and introduction of new products should be done with utmost care taking inputs from the research outcome.
- 19. • Weakness: Notouch and feel of the product • Threat: Competition from brick and mortar companies • Strategy: Evolution of consumer behavior, combined with the advance and affordability of technology is starting to pit Amazon against brick and mortar mass retailer like Wal-Mart. As a backup plan to counter a situation of imposition of taxes on internet shopping in the near future which may force it to lose the price war in comparison to Wal-Mart(one of its biggest competitors) ,Amazon will have to proactively invest for development of company centric world class supply chain management, warehousing and distribution logistics.
- 20. ANY QUERIES? -THANK YOU