2. Issues ①
Net sales shows the drastic growth by expanding the categories of products
ROS is very low and it’s going down in 4 years. Profitability is a key issue of Amazon.
As the Categories of products will be limited, new business domain will be necessary.
70,000
10.0%
Net sales
ROS
60,000
61,093
8.0%
48,077
50,000
$ Mil.
40,000
6.0%
3.4%
30,000
20,000
3.7%
34,204
3.4%
4.0%
24,509
19,166
2.0%
1.3%
0.0%
-0.1%
10,000
0
-2.0%
2008
2009
2010
2011
2012
3. Issues ②
Sales of ‘other(new business)’ from international segment hasn’t expanded for 3 years
Profits from international segment remains low
North America
40,000
30,000
Other
EGM
Media
International
40,000
Sales
30,000
20,000
Sales
20,000
10,000
Other
EGM
Media
10,000
0
0
2010
2011
2012
2010
2011
2012
4. To prevent being commodity service
Horizontal
integration
New
services
Vertical
integration
5. SWOT analysis of Amazon
Strength:
・Low price
・e-Commerce system
・Logistics
・Long tail business
・・・・ Volume discount based on buying power
・・・・ User friendly I/F and Payment system
・・・・ Speedy delivery, Bar code system
・・・・ Providing niche products
Weakness:
・Logistics center cost
Opportunity:
・B to B business ・・・・ Company owns their e-commerce system
and makes contracts with each supplier.
⇒Small company doesn’t have buying power
for cost down.
⇒They are difficult to find better suppliers and
products.
Threat: Yahoo, Rakuten, Google, Apple
6. New service of Amazon
For
・Amozon can supply materials for manufacturing companies
such as Automobile, Electronics, Pharmaceutical company etc.
For example:
Automobile for Automotive, Amazon for Electronics etc.
・They also provide products for small firms, venture companies.
⇒Amazon for Business is effective for small companies.
Items:
・Electrical parts, Semiconductors, Rare metals, Chemicals etc.
7. New service of Amazon
For
Buyers’ merit
・ to buy lower price and in small lot using buying
power of Amazon.
・ especially benefit for small company
・ not to own their e-Commerce system
・ to find good suppliers by users’ grading and comment
Suppliers’ merit
・ easy to participate to network to expand their sales
・ not to own e-Commerce system
Issue: Security for business use
8. Horizontal integration
• New service in the existing market
– Amazon Travel
– Amazon Auction
– Amazon Insurance
• Developing a New market (country)
– Australia
– South Korea
– Indonesia
10. Vertical integration
• The value amazon has
Mercha
ndiser
• Books
• Music
• Consumables
One-to-One system
Deliv
ery
• Yamato HD
• Yubin
Improving
customer experience
Technolog
y
• Big data
• Data storage
• Mining skill
1.
2.
3.
4.
Recommendation
Customer-matched design
Usability
Customer review
11. Vertical integration
• Recommendation idea
amazon
Supply amazon’s data
to manufacturers
amazon integrated
platform with
manufacturers - New
BtoB business to
maximize customers’
value
Big data
Manufacturers
Purchase & website view
Purchase
Customers
R&D
