This document provides an overview and analysis of Amazon.com's operations and strategic plan. It discusses Amazon's history and financial performance from 2010-2011. It also outlines Amazon's mission, marketing strategies, target markets, and reasons for their success. Specifically, it analyzes Amazon's strategies around product development, market development, and service development. It also discusses their 4P's of marketing.

1. SCHOOL OF TOURISM AND HOSPITALITY MANAGEMENT
Marketing for Tourism and Recreation
Industry - I
20010-2011 Fall
TMKT313
Pro. Dr. RÜÇHAN KAYAMAN
VAZIRI
Oluwabunmi Rosemary Afuwape 109453
Devraj Chamlagai 088466
Asif Rizwan 099208

2. Table of Content
1. Executive Summary
2. History Of the Company
3. Financial Information (2010 – 2011)
4.
i. Mission and Vision
ii. Strategies (Product, Place, Price and Promotion)
5. Target Market
6. References

3. Amazon.com network

4. Executive Summary
 Amazon.com with a strategic plan for their operations
within the retailing industry. Amazon.com is a leading e-retailer
and is a globally recognized brand, but is facing
increasing competition from bricks and mortar companies
setting up online presence and current e-retailers increasing
their geographical and product scope.
 The internal and external analysis reveals that Amazon.com
has been under performing in China; thus it has been
recommended that Amazon.com penetrate the Chinese
market. This will require implementing a marketing strategy
and by introducing the Merchant Program in order to
make the company more locally responsive and take
advantage of the growing online market.

7. History of the Company
 Amazon.com, Inc. was incorporated in 1994 in the
state of Washington and reincorporated in 1996 in
the state of Delaware.
 “Jeff Bezos” founded Amazon.com, Inc. in 1994,
and the site went online in 1995. It is named after
the Amazon River, one of the largest rivers in the
world.

8. “Jeff Bezos”
Founder of Amazon.com

9. Amazon.com
 Amazon.com, Inc. is a multinational electronic commerce
company headquartered in Seattle, Washington, United
States. It is the world's largest online retailer. Amazon has
separate websites for the following countries: United States,
Canada, United Kingdom, Germany, France, Italy, Spain,
Japan, and China. It may also launch websites in
Netherlands, Sweden, and India. It also provides international
shipping to certain countries for some of its products.

10. Financial Information (2010-2011)
Amazon.com. Inc, over the years from 1997 has served
more than 1.5million customers, yielding 838% revenue
growth $147.8 million and extended market leadership .
The Amazon showed consistent trend, it started with
lower net income but kept increasing thereafter and
peaked on in December 31, 2010 – July 17th 2011. Amazon
generated a total revenue from $34.204 billion to 72.94
billion.

11. Financial Report Dollars ($ US) from 2010-2011
Revenue 34.204 – 72.94 billion
Operating Income 1.406 – 7.49 billion
Net Income 1.152 – 4.76 billion
TotalAssets 18.797 – 34.44 billion
Total Equity 6.864 – 12.89 billion
Employees 33,700 – No increase

12. Mission and Vision
Amazon mission and vision statement is:
“Our 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
by online”.

13. Strategies
Market Development
Service Development
Product Development

14.  Market Development: Acquiring a growing, profitable e-retailing
company is to take advantage of the growing market in the various
countries that they have their online markets e.g., India, United states,
United Kingdom, etc.
 Service Development: Providing a “greener” delivery option meaning
that consumers will be given options and choice of selecting the
standard delivery option. This options means that items will be
delivered in plastic biodegradable plastic container, where consumers are
encouraged to return the box after use and will be given an e-voucher
to be spent at Amazon after they have collected certain green points
and boxes can be re-used by Amazon in future deliveries, which in
return will reduce cost of packaging and wastage.
 Product Development: This option recommends the addition of
prescriptive contact lenses to Amazon.com’s Product range. This initial
investment for this option will be high however, long term profitability
reduces the overall financial risk associated.

16. In addition we have 4P’s (Product, Place, Price and
Promotion).
Product
 Audible Audio books
 Books
 Children’s Book
 Textbooks
 Audio books
 Magazine
 Movies, Music and Games
 Computer Parts and Components
Software
 Laptops, Tablets and Net books
 Musical Instruments
 MP3 Players and Accessories
 Electronic and Computers
 Desktops and Server
 Digital Games and Software
 Health and Beauty
 Grocery
 Toys, Kids and baby
 Clothing, shoes and Jewelries
 Sports and Outdoors

17. Amazon.com onee of the famous product
The Amazon Kindle is an e-book reader developed by Amazon.com.
which enables users to shop for, download, browse, and read e-books,
newspapers, magazines, blogs, and other digital media via wireless
connectivity.

18.  Automotive and Industrial
 Digital Cameras
 Meat, Sea Food and Gift Baskets
 First Aid and Hair removal
 Canned Food and Household
Supplies
 GPS
 Fashion Accessories
 Beauty Care Products
 Furniture and Beddings
Products
 Tableware and Utensils
 Musical Instruments
 Motorcycle and ATV Parts
 Pet Supplies
 Tires and Wheels

19. Place
 The places where the products are made and produce are
from various and different companies as well as different
authors of books, textbooks and Audio Books.
 Amazon.com is more like an avenue for people to showcase
their products.
 products are showcase is on the World Wide Web which is
in different countries as well, but the main place is in the
United States.

20. Price
 Reserved give the option to make a low price, one-time
payment for each instance in return a significant
discount .
 It’s Depend on the item which you are going to buy.
 Easy accessible cause and price are in dollars so you can
convert your local currency in US dollar.
 Master Card, Visa and other card are acceptable, so it
provide security and privacy.

21. Promotion
 Amazon.com operates exclusively through its website
unlike most other retailers that also maintain a
physical presence. Customers like the simple online
shopping option as well as the availability of discounts
on the website
 In Amazon.com if you don't know the code, you can't
take advantage of the discount. You can find these
secret discount codes and coupon codes listed on many
sites across the internet Eligible products for this
promotion are Home and Garden, Kitchen Wares,
Electronics, Books, Magazines, Furniture, etc.

22. Target Market
 Business plans cover both the existing size and they
anticipate the growth rate of the market they are targeting.
 In Amazon the business plan are often quite in the
descriptions of potential customers including gender, age,
level of education, marital status .
I. Gender - Both Female and Male
II. Age - In this category the ages of satisfied customers are
from 3 - 12 years (toys, children books), from 13 - 17 years
(textbooks, magazines and toys), from 18 - 25 years
(resourceful books, textbooks, electronics, audio books),
from 27 - 35 years (garden and home, utensils, furniture,
electronics, beauty and health, Audio books, books, etc)
and then to 40 - 75 years (Audio books, Magazine,
Resourceful books, electronics, garden and home, etc)

23. III. Marital Status - married and non - married
IV. Level of Education - Amazon does not consider
the level of education of anyone, for its products
serve both the needs of those wanting and seeking
knowledge, those with knowledge, those that want
beauty for their body, health and home and Amazon
makes sure they are met.
V. Employment and Income - Their products are low
in prices and affordable for those who would want
to buy any products produced by Amazon and sold
by them as well.

24. Why Amazon.com?
1. Today online commerce saves money and time and we believe
that a fundamental measure of our success.
2. No need to spend time to describe about product for resellers which
used to describe already in amazon.com.
3. Easy accessible about payments and receive.
4. The direct cost-of-sale for an order taken from a web site is lower
than through traditional means (retail, paper based), as there is no
human interaction during the on-line electronic purchase order
process.

25. 5. Deal with target or niche market, no need to deal with market
segmentation etc.
6. From the buyer’s perspective also ecommerce offers a lot of tangible
advantages. Reduction in buyer’s sorting out time.
 Better buyer decisions.
 Less time is spent in resolving invoice and order discrepancies.
 Increased opportunities for buying alternative products.
7. The strategic benefit of making a business ‘ecommerce enabled’, is
that it helps reduce the delivery cost time, labor cost and the cost
incurred.
8. Operational benefits of Amazon.com include reducing both the time
and personnel required to complete business processes, and reducing
strain on other resources.

26. Final Christmas push Increase (propel) US online spending
up 15%

27.  Holiday season retail e-commerce spending for the
first 56 days of the November – December 2011 holiday
season has been reported today.
 For the holiday season-to-date, $35.3 billion has been
spent online, marking a 15-percent increase versus the
corresponding days last year.
 The most recent week (ending Dec. 25) witnessed $2.8
billion in spending, an increase of 15 percent versus the
corresponding week last year.