1) The document discusses Amazon's business model and strategy for growth from 2001 to 2011. 2) It highlights how Amazon grew rapidly during this period through aggressive investments in new products/businesses and efforts to increase brand awareness and acquire new customers. 3) The document also examines Amazon's mission, values, marketing strategy, and areas where it excels in customer experience like selection, price, and customer service/reviews.

2. Just a digital shop …
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3. … or a digital empire ?
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4. All these companies belong to Amazon
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5. Amazon Web Services drives these companies
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6. Worldwide sales
CAGR = 32 %
Year 2001 Year 2011
$ 3.123 m $ 48.077 m
Other Other
2% 3%
EGM
19 %
Media
37 %
EGM
Media 60 %
79 %
Media  Books, music, movies, games,…
EGM  Electronics and general merchandise
Other  Amazon Web Services,… 6

7. Amazon is a giant …
40 % growth in 2011 3x
$ 48.000 m of sales 1,25 x
$ 90.000 m of market capitalization 2x
152 m of customers 2x
51.300 employees 25 x
$ 189 of sales per unique user 24 x
7th site with the most unique users before
1st retail brand before
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8. Mission, vision and values
Mission
We seek to be earth’s most customer-centric company for four primary
customer sets: consumers, sellers, enterprises and content creators.
Vision
We seek to be build a place where people can come to find and discover
anything they might want to buy online and enjoy the best shopping
experience on the internet.
Values
Customer obsession. Ownership.
Innovation. High hiring bar.
Bias for action. Frugality.
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9. Core value proposition
Amazon’s core
value proposition
is not disruptive.
Amazon perfectly
understood the
old economy
retail cocktail.
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10. Amazon’s virtuous cycle and
its strategic imperative
Get big fast
by investing
aggressively in
new product
categories and
new businesses,
by spending
money on brand
awareness and by
getting new
customers.
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11. A picture is worth a thousand words …
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12. Marketing strategy
Objectives Key actions
Increase customer traffic.
Pay per click advertising.
E-mail marketing.
Create awareness of our
Affiliate marketing.
products and services.
Continual web site improvement.
Streamlined ordering process.
Promote repeat purchases. Personalization and customization.
Customer’s opinions and co-creation.
Customer service.
Develop incremental product and
Partnerships and web services.
service revenue opportunities.
Strengthen and broaden the Online advertisement.
Amazon brand name. Offline advertisement.
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13. Best practices where Amazon is best-in-class
Large selection
Low prices
Other
Service quality retailers
Navigation experience
Users co-creation
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14. Best practices where Amazon is best-in-class
$ 73,54
Large selection In stock. Sold by Car Toys.
Suggested
retailer
Low prices
Service quality
Navigation experience Price
competition
Users co-creation
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15. Best practices where Amazon is best-in-class
Large selection Free shipping
in two or
three days
Low prices
Service quality
Navigation experience
Returns
and refunds
Users co-creation are easy
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16. Best practices where Amazon is best-in-class
$ 59,00
Streamlined In stock. Sold by LiveSpan.
ordering process
Large selection
Low prices
Personalized
recommendations
Service quality
Navigation experience
Users co-creation
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17. Best practices where Amazon is best-in-class
Large selection Customer’s
opinions
Low prices
Service quality
Helpful ?
Navigation experience
Users co-creation
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18. Best practices where Amazon is best-in-class
Rate a product or
create product
reviews
Large selection
Low prices
Service quality
Navigation experience
Users co-creation
Comment on other
user’s reviews
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19. Best practices where Amazon is best-in-class
Large selection
Low prices
Top reviewer
Service quality ranking
Navigation experience
Users co-creation
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20. Best practices where Amazon is best-in-class
Customer
discussions
Large selection
Low prices
Service quality
Navigation experience
Users co-creation
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21. Opportunities for improvement in terms
of customer experience
Length and design of the pages
containing the information
about the products.
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22. Opportunities for improvement in terms
of customer experience
Purchasing process when shopping in an
Amazon’s website that is not intended for
the country where the user lives.
Calle María de Molina, 11 - 28006 Madrid - Spain
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23. Opportunities for improvement in terms
of customer experience
It is not possible to search
The search options in multiple departments
are too basic. Limited sorting
There are no
and filtering
advance
options
search tools
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24. Functionality that we would add
Wider interaction and
interrelation with social
networks to create a larger
value added community.
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