BUSINESS STRATEGY - A SUCCESS STORY
Company presentation on
• Amazon.com was incorporated in 1994 by Founder
and CEO Jeff Bezos.
• The domain name “amazon.com” was chosen in order
to ensure that the co. name results in alphabetical
order.
• The 2nd reason being ‘ a place that is exotic and
different’ just as the founder had planned for his
online store.
• The first co. to sell goods over internet, started an
online book-store and in 15 years, it expanded from
one category to 16 main categories which included
apparels, health, toys, auto-parts, DVDs, home
furnishing, CDs, videos, electronics, etc .
history
• In 1994, Jeff Bezos left his job as the Vice-President of
a Wall Street firm and moved to Seattle to lay the
blueprint for Amazon.
• He made a list of the 5 products that
could be sold online: compact discs,
Computer hardware and software, videos
and books.
• In July 1995, Amazon sold its first book online:
Douglas Hofstadter’s Fluid Concepts and Creative
Analogies: Computer Models Of the Fundamental
Mechanisms of Thought. Within 2months the co. was
selling to all 50states of U.S and 45 other countries as
well.
Visionandmission
The 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.
All the activities including
promotions, marketing campaigns,
acquisitions, etc are aligned towards
the common vision of the company.
Insightsthatshapedamazon
BUILDING
TRUST
INCREASING
SALES
FASTER
PROCESS
PRIME
CUSTOMERS
AFFILIATE
MARKETING
MORE
CUSTOMERS
CHANNELS, MORE
DISTRIBUTION,
LARGER REACH
MORE SELLERS
LOWER PRICE, LARGER
SECTION,GREATER
CONVENIENCE
Customer service
E-mail
chat
Telephonic
 Heavy focus on customer service.
Fast returns and replacements.
Provides easy interface for
customer to register their complaint.
 All queries and complaints are added immediately.
 Customer feedback on products and strategies.
• Quality products at
affordable prices.purpose
• Tech savy image.
• Next generation outlook.Self-expression
• Reliability and trust.
• Secure transactions.emotional
• Ease of purchase and delivery.
• Lowest prices.functional
Seven International Stores of
Amazon.com
Amazon France, Amazon UK, Amazon Germany,
Amazon Canada, Amazon Japan, Amazon China,
Amazon US.
Reasons:
 The Mother tongue issue.
The currency issue.
The shipping issue.
The local product issue.
National Pride issue.
Proper Inventory Control.
Walking wounded
1.Some of the current users
who are dissatisfied about
shipping delays.
2.Customers who faced
technical glitch and their
cash got locked in.
Champion
1.Repeat purchases.
2.Customers who give reviews
and ratings to diff services.
3.Early adapters of technology.
Missing in action
1. Registered inactive users.
2.Loyal customers of other
competitors.
3. Customers who are
doubtful towards online
payment models.
Terrorists
1.Dissatisfied customers
spreading opinions through
social media sites.
esteem knowledge
 Always keeping promise.
 High quality of service.
 Most popular online
retailer.
 High penetration of brand
due to large portfolio.
 Strong brand identity.
 Investments in brand
building has increased the
awareness levels among
target market.
 For those who have access
to internet.
 When income increases, so
does the no. of online
purchases.
 41% of online shoppers
are between the age group
of 35-50.
 Recently increased focus
to younger class.
 Appeals to customers all
over the world.
 Sell digital products where
their merchandise sales
are difficult.(e-books)
 Has 7 international
websites.
Brand as
product
• Wide range
• Lowest price
• High service
• Reliability
• Value for
money
Brand as
organization
• Innovative
• Customer
friendly
• Global
• Trustworthy
Brand as
person
• Honest
• Reliable
• Timely
• Energetic
• Friend
Brand as
symbol
• Symbol for
reliability
• Functional
appeal
• Modern
Strengths
 America’s largest online
retailer.
 Diversified into product
lines other than books to
strengthen customer
reach.
Weakness
Late in entering
emerging markets
like China and India.
Threats
Foreign exchange
fluctuation.
Opportunities
Increase in online
retail sales in the US.
Amazon.com bases its marketing strategy on seven
pillars:-
1. It freely offers products and services.
2. It uses a customer-friendly interface.
3. It scales easily from small to large.
4. Creates awareness for it’s products.
5. Affiliate Program is important in driving visitors.
6. It utilizes universal behaviors and mentalities.
7. It uses existing communication systems.
Corporat
e
• Build brand equity and grow the company
Marketin
g
• Enhance brand awareness.
Distributio
n
• Increase the research internationally and the
product.
Promotio
nal
• Communicate brand promises of amazon
Pricing
• To be cheaper than the competitors.
Marketingplan
Pay per
click
advertisi
ng
Email
Marketi
ng
Affiliate
Marketi
ng
Online
Ads
Media Promotion Events Others
 At Amazon the employees are offered the chance
to work with great people on exciting projects with
an opportunity for growth.
 The Amazonians have a life outside of work and
need a break every once in a while, that’s why the
company provides a full range of benefits, which
may vary from location to location.
Health
Care
Time-Off Saving
Plans
Relocation
Assistance
Technology
 With hundreds of thousands of people
sharing their credit card details daily with
Amazon, security is a major issue. This is
managed by the Netscape Secure
Commerce server that Amazon employs
store such details.
 As the company began with the letter ‘A’and
settled on the word Amazon as it was the river ,
the founder considered the biggest in the world as
he hoped for his company would one day.
 Today, Amazon is the World’s Largest
Online Retailer, has established
separate websites in different
countries, has acquired multiple
organizations and websites
and also offers international shipping.
Amazon Business  strategy- A Success  Story

Amazon Business strategy- A Success Story

  • 1.
    BUSINESS STRATEGY -A SUCCESS STORY Company presentation on
  • 2.
    • Amazon.com wasincorporated in 1994 by Founder and CEO Jeff Bezos. • The domain name “amazon.com” was chosen in order to ensure that the co. name results in alphabetical order. • The 2nd reason being ‘ a place that is exotic and different’ just as the founder had planned for his online store. • The first co. to sell goods over internet, started an online book-store and in 15 years, it expanded from one category to 16 main categories which included apparels, health, toys, auto-parts, DVDs, home furnishing, CDs, videos, electronics, etc .
  • 3.
    history • In 1994,Jeff Bezos left his job as the Vice-President of a Wall Street firm and moved to Seattle to lay the blueprint for Amazon. • He made a list of the 5 products that could be sold online: compact discs, Computer hardware and software, videos and books. • In July 1995, Amazon sold its first book online: Douglas Hofstadter’s Fluid Concepts and Creative Analogies: Computer Models Of the Fundamental Mechanisms of Thought. Within 2months the co. was selling to all 50states of U.S and 45 other countries as well.
  • 4.
    Visionandmission The vision isto 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. All the activities including promotions, marketing campaigns, acquisitions, etc are aligned towards the common vision of the company.
  • 5.
  • 6.
    MORE CUSTOMERS CHANNELS, MORE DISTRIBUTION, LARGER REACH MORESELLERS LOWER PRICE, LARGER SECTION,GREATER CONVENIENCE
  • 7.
  • 8.
     Heavy focuson customer service. Fast returns and replacements. Provides easy interface for customer to register their complaint.  All queries and complaints are added immediately.  Customer feedback on products and strategies.
  • 9.
    • Quality productsat affordable prices.purpose • Tech savy image. • Next generation outlook.Self-expression • Reliability and trust. • Secure transactions.emotional • Ease of purchase and delivery. • Lowest prices.functional
  • 10.
    Seven International Storesof Amazon.com Amazon France, Amazon UK, Amazon Germany, Amazon Canada, Amazon Japan, Amazon China, Amazon US. Reasons:  The Mother tongue issue. The currency issue. The shipping issue. The local product issue. National Pride issue. Proper Inventory Control.
  • 11.
    Walking wounded 1.Some ofthe current users who are dissatisfied about shipping delays. 2.Customers who faced technical glitch and their cash got locked in. Champion 1.Repeat purchases. 2.Customers who give reviews and ratings to diff services. 3.Early adapters of technology. Missing in action 1. Registered inactive users. 2.Loyal customers of other competitors. 3. Customers who are doubtful towards online payment models. Terrorists 1.Dissatisfied customers spreading opinions through social media sites.
  • 13.
    esteem knowledge  Alwayskeeping promise.  High quality of service.  Most popular online retailer.  High penetration of brand due to large portfolio.  Strong brand identity.  Investments in brand building has increased the awareness levels among target market.
  • 14.
     For thosewho have access to internet.  When income increases, so does the no. of online purchases.  41% of online shoppers are between the age group of 35-50.  Recently increased focus to younger class.  Appeals to customers all over the world.  Sell digital products where their merchandise sales are difficult.(e-books)  Has 7 international websites.
  • 16.
    Brand as product • Widerange • Lowest price • High service • Reliability • Value for money Brand as organization • Innovative • Customer friendly • Global • Trustworthy Brand as person • Honest • Reliable • Timely • Energetic • Friend Brand as symbol • Symbol for reliability • Functional appeal • Modern
  • 17.
    Strengths  America’s largestonline retailer.  Diversified into product lines other than books to strengthen customer reach. Weakness Late in entering emerging markets like China and India. Threats Foreign exchange fluctuation. Opportunities Increase in online retail sales in the US.
  • 18.
    Amazon.com bases itsmarketing strategy on seven pillars:- 1. It freely offers products and services. 2. It uses a customer-friendly interface. 3. It scales easily from small to large. 4. Creates awareness for it’s products. 5. Affiliate Program is important in driving visitors. 6. It utilizes universal behaviors and mentalities. 7. It uses existing communication systems.
  • 19.
    Corporat e • Build brandequity and grow the company Marketin g • Enhance brand awareness. Distributio n • Increase the research internationally and the product. Promotio nal • Communicate brand promises of amazon Pricing • To be cheaper than the competitors.
  • 20.
  • 21.
     At Amazonthe employees are offered the chance to work with great people on exciting projects with an opportunity for growth.  The Amazonians have a life outside of work and need a break every once in a while, that’s why the company provides a full range of benefits, which may vary from location to location.
  • 22.
  • 23.
    Technology  With hundredsof thousands of people sharing their credit card details daily with Amazon, security is a major issue. This is managed by the Netscape Secure Commerce server that Amazon employs store such details.
  • 24.
     As thecompany began with the letter ‘A’and settled on the word Amazon as it was the river , the founder considered the biggest in the world as he hoped for his company would one day.  Today, Amazon is the World’s Largest Online Retailer, has established separate websites in different countries, has acquired multiple organizations and websites and also offers international shipping.