This document provides an overview of Amazon, the multinational e-commerce company founded by Jeff Bezos in 1994. It discusses Amazon's introduction as an online bookstore, its current status as one of the largest online retailers in the world with a focus on books, movies, music and various other products. The document also briefly outlines Amazon's business model, technology infrastructure, competitive strategies and opportunities for further growth.
2. INTRODUCTION
Amazon is a multinational electronic commerce company.
Headquartered ---Seattle, Washington.
Amazon.com, Inc. (NASDAQ: AMZN) is an American.
America's largest online retailer.
Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it
online In 1995. It started as an online bookstore.
With 2.5 million titles, it became the “Earth’s Biggest Bookstore”.
3. VISION
To be the largest mass online merchandiser on earth.
Mission
The company motto: “Work Hard, Have Fun, and Make
History.”
4.
5. PRODUCTS
Books
Movie, Music and Games
Digital Download
Kindle
Computer And Office
Electronics
Home and garden
Grocery, Health and beauty
Toys, kids and baby
Clothing, Shoes and jewelry
Sports and outdoors
Tools, Auto and industrial
6. AMAZON TECHNOLOGY
It has world’s largest Linux Database, with a total
capacity of 7.8 TB, 18.5 TB and 24.7 TB respectively.
The Central Amazon Data warehouse is made up of 28
HP server, with four CPUs per node, running Oracle 9i
database software.
The architecture handles millions of back-end operations
and third party seller queries.
7. BUSINESS MODEL
Amazon-to-Buyer Sale Approach
Multi level E-Commerce
Customer Tracking
It operates 7 websites that support
their business operation globally and
offers 20 million items for sale.
8. PRIMARY DRIVE FOR GROWTH
1. Product focus
2. Customer focus
3. Technology focus
4. Distribution focus
11. 5 COMPETITIVE FORCE MODEL
Rivalry
New entrants
Substitutes
Supplier
Buyers
12. HOW DEAL WITH SUPPLY CHAIN IN
FLUCTUATING DEMAND
Amazon.com carries high-demand title in inventory,
whereas it purchases low-demand titles from distributor
in response to a customer orders .
Reduction in various costs like ;-
- Inventory cost
- Facility cost
- Transportation costs
- Information costs
13. SWOT ANALYSIS
Strengths
1. Strong management team .
2. Strong customer service support
3. Up-to-date technology and software
4. High brand name recognition
5. Distribution centers.
6. High inventory turnover
Weaknesses
1. Operating losses
2. High inventory risk – seasonality
3. High inventory risk – seasonality
4. Only online presence
5. Selling at zero margins
Opportunities
1. Release more its own brand products
and services
2. Open more online stores in other
countries
3. Physical presence
4. State of the economy is improving
5. Customer spending increased
6. Increased number of Internet users
worldwide
Threats
1. Aggressive competition
2. Identity theft
3. Ease of entry into market
4. Regional low cost online retailers
15. MODE OF PAYMENT
Amazon Payments accepts verified U.S. bank accounts,
credit cards, and transfers from your available Amazon
Payments account balance.
Credit cards currently accepted include Visa,
MasterCard, Discover, American Express, Diners Club,
and JCB. An Amazon.com store card is available for use
with selected merchants.