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Case Study of Amazon
- 1. Amazon is basicallyan American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the United States. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization.
- 2. The arrow whichlooks like a smiling face in Amazon’s logo has another meaning behind it. It is a representation of the wide range of items available for retail by Amazon, from A to Z.
- 3.
- 4. United States United Kingdom Ireland France Canada Italy Germany Spain Netherlands Australia Brazil China India Japan Mexico Amazon has separate retail websites for:-
- 5. Kindle e-Readers &eBooks Amazon Apps Books Movies, Music & Video Games Mobiles & Tablets Computers & Accessories Cameras, Audio & Video Home, Kitchen & Pets Toys & Baby Products Sports, Fitness & Outdoors
- 6. Beauty & Health Clothing& Accessories Jewellery, Watches & Eyewear Handbags & Luggage Shoes Car, Motorbike & Industrial
- 7. 1.) AmazonFresh is Amazon’s free same day delivery of fresh groceries and local produce. Order your milk by 10 am, and have it delivered by Amazon to the office before you go home. Available only in limited areas of California, you can order from more than 500,000 different items that include local and regional produce. Amazon is making huge investments in it’s delivery operation and fulfillment centres, and this is what is differentiating it from other internet retailers. Its fast, free delivery is keeping it ahead of the competition. Amazon knows that great delivery service leads to a jump in sales. And by working in partnership with local food producers and providers, the international giant, Amazon, is now becoming our local provider of choice
- 8. 2. AmazonDash:- Amazon Dash allows you to create your own shopping list by a barcode scanner or voice recognition and. If you want to add a product on your shopping list, then either scan the label, or speak the word into the microphone, and the item gets added to your Amazon Fresh shopping list. 3. Amazon Prime Pantry:-Amazon Prime Pantry tackles a new segment: the supermarket’s big weekly online shopping market. Customers can order up to 45 pounds (20 kilos) of supermarket style essentials and have it delivered for a flat fee of $6 (£3.57.) 4. Amazon Fire TV Amazon doesn’t just ship content like books and videos, it streams content on its Amazon Prime Instant Video streaming service. And it the same way Amazon developed the Kindle in order to have a more direct route to market, it has now released the Amazon Fire TV . The small set top box delivers streaming Amazon Prime Instant Video, streaming movies and television, but also plays apps based games, and provides an interface to Amazon’s own retail products.
- 9. Returns leadingto reverse logistics. Preference to cash on delivery mode due to low credit card penetration and less trust on online transactions. Such transactions are expensive for seller. Most payments gateways have a high failure rate. This leads to loss out of business as several customers do not reattempt to do the payment. Internet penetration is low and the quality of connectivity is also poor. Smartphone penetration is not significant in India. 40% of Amazon’s transactions are done on mobile. The customer base can be increased with higher penetration of Smartphone. Buying of a product on websites does not allow a customers to have a touch and feel experience. Logistics is a problem in thousands of Indian towns. Due to the inaccessibility of many small towns in India is factor driving the logistics problem Problems faced by Amazon
- 10. In themedia segment, Amazon competes with:- Netflix Time Warner Cable Apple’s iTunes Google’s Play Store In the electronics and general merchandise segment, many of which are brick and mortar rivals including:- Best Buy Target Walmart
- 11. In India theelectronics and general merchandise segment online competition includes:-
- 12.
- 13. The business strategiesand sources of competitive advantage are as follows:- Technology Economies of Scale Talented Workforce Marketing :-Brand Name & Reputation Extensive Product Offerings Extremely Low Prices :-Shipping/Delivery Advantages :-Manufacturing of Kindle as lowest price E-Reader
- 14. Flipkart, India'slargest e-commerce firm, and US’s major firm Amazon exchanged barbed comments on Twitter recently when portal Reddit India tweeted a photo showing an Amazon delivery box sitting at Flipkart's reception. The tweet suggested Flipkart’s staff preferred to order from Amazon. The Indian company hit back, posting "We recycled said packaging as our reception's dustbin.“ Amazon then weighed in, tweeting: "There is a bit of Amazon in every eCommerce company #justsaying," -- an apparent reference to the fact that Flipkart's founders used to work for the American company.
- 15. The realknives in this battle are more dangerous than tweets. According to industry sources, Amazon India has data scientists whose job is to only execute strategic pricing that makes Flipkart bleed. For instance, sellers on Amazon may have 2,000 refrigerators, it may offer deep discount on 300 of them. That will provoke Flipkart to discount further - and hence add up to its losses. Amazon is using it out of design to maximise the bleeding at Flipkart. Today the game is about who has the stamina to last longer.
- 16. Present scenario inAmazon vs Flipkart vs Snapdeal
- 17. Market shareof these sharks has increased considerably. The three major Players are Flipkart, Amazon and Snapdeal. The sharks have now become bigger for the ocean as Flipkart acquired Myntra. Money is being poured in at an alarming rate. As Flipkart announced a $1 billion financing, Amazon decided to steal Filpkart's thunder by announcing that it would invest $2 billion in its Indian entity. The final Scenario Only 2 major players left. Flipkart and Amazon have to survive this. Snapdeal has an outside shot. Flipkart will go for an IPO in either US or Singapore (* Flipkart files to become a public company). The smaller sharks will be eaten up by the bigger ones, either via acquisitions - or we‘ll see plenty of mid-size sharks forming alliances.
- 18. As oftoday, the biggest player in Indian market is Flipkart, followed by the rest. Amazon has covered a good percentage of market in a short time, but the race has just started & Flipkart is already some paces ahead, for now. Flipkart's investors knew that the real e-commerce battle in India was not Flipkart versus Jabong or Snapdeal. They knew even before the launch of Amazon.in that the real contender was Amazon. Amazon India’s sales are estimated at over $200 million (Rs 1,200 crore). It took Flipkart 7 years to achieve these sales numbers, snapdeal expects to reach it this year while amazon might clock Rs 6,000 crore by the end of March 2016. Face-off:- India's biggies, Wipro's Azim Premji and Infosys' N R Narayana Murthy, have placed their bets on the burgeoning $3-billion e-commerce market space too. Azim Premji has sided with Myntra (acquired by flipkart) & Snapdeal. While Narayana Murthy has placed his faith on Amazon.
- 19. There's notgoing to be one clear winner considering the funds these firms are pooling in. Over the next few years, each of these companies will find a niche that they'd dominate, and go for an aggressive expansion. But still Amazon is having a huge advantage of its niche product. People are reading more than ever because of the ease of E-books.
- 20. Kanwar DevSingh THANK YOU