Amazon started as an online bookstore and has since expanded into many other product categories and business lines. It uses a business model of low prices, vast selection, and convenience for customers. The report analyzes Amazon's lines of business, business models, and e-commerce strategies. It finds that Amazon utilizes various intensive growth strategies like market development, market penetration, product development, and diversification. Its overarching generic strategy is cost leadership to offer competitive prices and gain market share.
Case study on amazon.com's supply chain management practices | MBAtiousaneesh p
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This was done as part of a coursework for the Business Model class at Heriot-Watt University.
It was used only in educational services.
I hope you enjoy it and learn something form it, because we certainly learned a lot.
Case study on amazon.com's supply chain management practices | MBAtiousaneesh p
The case study provides an overview of Amazon.com's inventory management. Jeffrey Preston Bezos the founder of Amazon.com launched the company when he realized that Internet provided immense scope for online trading. Although the site was originally launched as an online bookstore it eventually offered several other products to keep abreast of the competition. The case study takes a look at the different products and features offered on the site. The case also discusses Amazon's value propositions and its criteria for choosing strategic partners.
This was done as part of a coursework for the Business Model class at Heriot-Watt University.
It was used only in educational services.
I hope you enjoy it and learn something form it, because we certainly learned a lot.
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This was presented in IIFT college by Ritesh Tando.
Snapdeal, Flipkart comparison is there. created by consultant with two years of indepth knowledge of the market.
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Follow us on Twitter: @faberNovel
AMAZON - case study - growth of e-commerceSiddhi Sharma
This study aims to find out the Line of business of amazon, types of business models used, e-commerce strategies and supply chain management strategies
Inside view of Amazon brand analysis, this can help us understand why they are becoming a clear leader in Indian market.
This was presented in IIFT college by Ritesh Tando.
Snapdeal, Flipkart comparison is there. created by consultant with two years of indepth knowledge of the market.
Amazon.com: the Hidden Empire - Update 2013Fabernovel
Our "most favorited" 2011 study revealing Amazon.com's strategies for dominating online retail has been updated to include analyses on all of the company's latest moves, and insights into where they may be going next.
Follow us on Twitter: @faberNovel
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Amazon.com is an American international e-commerce company with headquarters in Seattle, Washington, United States. Founded in 1994, it is the world’s largest online retailer.
Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
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1Managerial Report for Case Problem Amazon.com lnc.”Execu.docxdrennanmicah
1
Managerial Report for Case Problem “Amazon.com lnc.”
Executive Summary
Today, Amazon is no longer the “online book-selling store” people used to be familiar with, but a very diversified company with an open platform. It not only has a third-party vendor platform that can attract numerous customers but also has achieved a good result in the logistics, film, and television industry. Moreover, Amazon is one of the first group of enterprises to enter the cloud service. Amazon’s leader Jeff Bezos proposed Amazon’s exclusive flywheel business model, which totally demonstrates his business insights and philosophy. Amazon ranks among the world’s top companies through its strengths in customer experience, logistics, cloud services, etc. Also, Amazon has been devoted to the technological area such as artificial intelligence and cloud services. Even faced with intense competition from the leading technology companies like Microsoft, IBM, and Google, Amazon has achieved excellent performance. This report will analyze Amazon’s flywheel model and its core competency, also introduce the competition between Amazon and Microsoft in cloud services and the future development direction of Amazon.
The Business Model of Amazon
Amazon has three core businesses. The first one is Amazon Prime, it is a paid membership system. When customer become a member of Amazon Prime, they can purchase any products on Amazon.com and enjoy free and fast delivery. The second one is the third-party seller platform, Individual merchants can create an online store on Amazon to sell their products. The third one is the AWS (Amazon Web Service). It’s a cloud service and offers a broad set of global cloud-based products including compute, storage or databases and so on. These services help organizations move faster, lower IT costs and scale (Cloud Products, Amazon Official Website). Whether a startup or a large enterprise, they can build their company’s IT system on Amazon’s cloud service system. It’s cheaper and more stable than building your own system.
These three core business looks unprofitable at first, but in fact, they are like a small saw tooth on a huge gear. The Prime and low price product can let the customer keep purchasing on Amazon, while the cloud and logistic service keep the supplier to work with Amazon. More suppliers will attract more customers, vice versa, the more the customers purchase, the more supplier is inseparable with Amazon. These have enabled Amazon to gain more with costs fixed (like logistics and warehouse) and provide customers with a lower price and turns the huge flywheel. Turning the stationary flywheel up must spend a lot of efforts at the beginning. However, in fact, every effort will not be wasted, and the flywheel will turn faster and faster. When a high speed is reached, no more effort is required and the flywheel can maintain its original state of motion.
Amazon’s Core Competency
Amazon’s success relies on robust operations, strict management.
Amazon.com - Company Analysis (OD & HRM)Nikhil Saraf
Amazon.com - Company Analysis
Answers the following:
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-How did these changes impact the organization?
-What were the organizational responses to these important points of change?
-How did these responses change the organization?
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from the start of the packet being transmitted at the source to the start of the packet being
received at the destination. Analysis of packet delay in both protocol IPv4 and IPv6 is
essential to measure network performance.
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insufficient IPv4 addresses and other issues, the world should migrate to IPv6 in near future.
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within a single autonomous system. It is defined as OSPF Version 2 in IPv4 and the updates
for IPv6 are specified as OSPF Version 3.
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number of Internet users growing exponentially, it is really necessary to reduce the packet
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In a packet network, the term packet delay characterizes as the difference in end-to-end one-
way delay between selected packets in a flow with any lost packets being ignored. The effect is
sometimes referred to as jitter, although the definition is an imprecise fit. The delay is specified
from the start of the packet being transmitted at the source to the start of the packet being
received at the destination. Analysis of packet delay in both protocol IPv4 and IPv6 is
essential to measure network performance.
This project entitled “Analysis of Packet on the basis of Delay on IPv6 and IPv4
Networks in Open Short Path First Routing Protocol ” intends to analyze the packet
delay in both protocol IPv4 and IPv6 under the same condition and find out the fact that
which one is better in term of packet delay parameter of network performance. Due to the
insufficient IPv4 addresses and other issues, the world should migrate to IPv6 in near future.
So, measuring the network parameter is necessary.
OSPF (Open Shortest Path First) is a routing protocol for Internet Protocol networks. It uses
a link state routing algorithm and falls into the group of interior gateway protocols, operating
within a single autonomous system. It is defined as OSPF Version 2 in IPv4 and the updates
for IPv6 are specified as OSPF Version 3.
This project deals with the techniques of measure and analyze the packet delay. As, the
number of Internet users growing exponentially, it is really necessary to reduce the packet
delay in every possible way to improve network performance.
E-commerce plays the vital role for the government, private sector organization as well as the consumers which address the convenient and effective process. Therefore, we performed the
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governance & to introduce the concept of information and knowledge
management.
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University computer science and engineering departments often have budgets which are comparable with small companies and an integrated system to support all aspects of departmental administration is required. This should support student
records, laboratory administration, the ordering of goods and services, input and output payments, payments made for teaching assistants, research contract reporting, etc. It should be linked to a wider University system responsible for staff salaries etc. Factors which should be taken into account include:
1) Departmental chairmen who use such a system are usually very busy. Even if they are computer literate, they require a system with a straightforward user interface.
2) Users of the system range from secretaries through technicians to teaching and administrative staff. The range of users to be supported is very wide.
3) In some countries, the trend is for Universities is to devolve administration from a central organization to the individual departments. The system must
be able to be expanded to handle future, unforeseen tasks.
4)Sub-systems should be automatically linked so that, for example, the costs of a particular class or laboratory can be computed by considering payments made and received.
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We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
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Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
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Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
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Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
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Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
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In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
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The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
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Attacks on counties – USA
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In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
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Cyber risk predictions
Axis of attacks – Europe
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https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
1. Lumbini ICT College
Gaindakot-2, Nawalparasi
Nepal
Case Study of E-Commerce
on
Submitted by :
Kaushik Raj Panta
Roshan Sharma
Department of Bachelor in
Computer Science and Information Technology
(Bsc CSIT)
of
Lumbini ICT College
4th
February 2017
2. Abstract
Amazon.com, often simply Amazon, is an American electronic commerce and cloud computing
company and the largest Internet-based retailer in the world by total sales and market capitalization
which has been serving worldwide from last two decades. The founders vision was to build a virtual
shopping place for book lovers. Amazon.com brings the world largest book store to the door step of
the people around the world. All people has to do is search and select the desired book. It took 30
day to deliver books to the customers of 50 states and 45 countries. Amazon.com was a huge
success in nineties. Amazon.com became a platform for the retailer and individuals in
2000.Amazon.com offers their services towards four types of customers, consumers, sellers,
enterprises and content creators.
This case study report is detail analysis of Amazon.com. The report describes the List of areas that
it has been working, the business models it has adopted and the various strategies that it has
implemented to make it one of the most successful E-commerce platform. This case study reflects
that using the strategies and model adopted by Amazon's can leads any other E-commerce site to get
successful. This case study also shows that how the different models and strategies must be
implemented with respect to the dynamic environment of the E-commerce.
To gather such information on Amazon's we use the informal way like as reading the articles and
other case study documents and pointed out some key points and finally we visited to the
Amazon.com to verify the finding as as well as to discover more that we might have been missing.
After doing the sort of analysis, we tends to find that Amazon is totally uses the Business to
Customer Model. Amazon totally rely on the customer and customer satisfaction is its primary goal.
Amazon handle its better relationship with customer by using CRM such as collecting information
of the customer like as all personal information of customers their credit card record, transaction
record, order record, profile, their past purchase history are collected in the database. Using of
CRM, Amazon provides sort of advantages to the customer like as Personalization, User ratings and
reviews, 1 click purchase, secure way for payment, minimum shipping charge, etc. Not only this
Amazon.com carries out some of Associate programs to boost the customer traffic and rate of sale
Amazon.com with customers and small businessman. Developing and offering new products to gain
higher revenues is the goal of this intensive growth strategy. Amazon grows partly by developing
new products over time.
On the part of conclusion we conclude that Amazon.com uses Business to Customer Model for its
better growth. Amazon mainly focuses on the customer satisfaction by providing the various ways
to ensure that like as personalization, user ratings and reviews, minimum shipping charge which act
as the key ingredients for success of Amazon.com. But still Amazon have to do some change on its
system like as Global Expansion, Integrating on New Technologies, Innovation of New products.
I
3. Table of Contents
Abstract I
Table of Contents II
List of Figures III
1. Introduction 1
1.1. Introduction 1
1.2. Objective 1
2. Methodology 2
3. Analysis 3
3.1 Lines of Business 4
3.2 Business Models 5
3.3 E commerce Strategies 5
3.3.1 Generic Strategy(PORTERs Model) 5
3.3.2 Intensive Strategies (Intensive Growth Strategies) 6
3.3.3 User Reference Strategies 7
3.3.4 Supply Chain Management (SCM) Strategies 10
4. Discussion 12
5. Recommendations 13
6. Conclusions 14
7. References 15
II
4. List of Figures
(a) Fig 0 : Logo of Amazon.com
(b) Fig 1 : Porters Model
(c) Fig 2 : Personalize the Shopping Experience
(d) Fig 3 : Making a Breeze Search
(e) Fig 4 : Customer Review
III
5. 1. Introduction :
1.1 Background
For the last two decade Amazon.com has been serving customer worldwide. Amazon.com, often
simply Amazon, is an American electronic commerce and cloud computing company, founded on
July 5, 1994, by Jeff Bezos and based in Seattle, Washington. It is the largest Internet-based
retailer in the world by total sales and market capitalization. Amazon started as an online bookstore,
later diversifying to sell DVDs, Blu-rays, CD s, video downloads/streaming, MP3
downloads/streaming, audio book downloads/streaming, software, video games, electronics,
apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics—
notably, Amazon Kindle e-readers, Fire tablets, and Fire TV—and is the world's largest provider of
cloud infrastructure services (IaaS).
In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market
capitalization, and is, as of 2016 Q3, the fourth most valuable public company.
Fig 0 : Logo of Amazon.com
1.2. Objective :
Following are the objectives of this case study :
(a) Identifying the Line of Business of Amazon.com
(b) Identifying the types of Business models used by Amazon.com for expanding its E-
commerce Business
(c) Identifying the list of E - commerce Strategies deployed by the Amazon.com regarding its
intensive growth, generic strategies and user referenced.
(d) Identifying Supply Chain Management (SCM) Strategies and how such strategies are
implemented.
(e) Identifying what are the more steps to be taken by Amazon.com in coming future.
2
6. 2. Methodology
Since Amazon.com is an intentional E-commerce website for selling and buying goods and products
so it is not possible to interview the developer and it is also not possible to interview the users
because it is not available in our country. So we basically uses informal way for carrying out our
case study with following steps to gather the information :
a) First of all we read the available paper and documents of case study on Amazon.com done
by others and noted some key points such as Areas of Business, Adopted Strategies,
Adopted Business Models, etc.
b) We too watched some videos based on customer and merchant reviews as well as videos
explaining the working of Amazon.com and its Strategies.
c) Finally We validate gathered information from the Amazon.com website and also target for
getting more information regarding the services it provides currently, how it maintains its
supply chain, etc.
3
7. 3. Analysis :
Known best as the largest internet retailer in the world, Amazon.com is not a simple case study in
terms of business model analysis. Even if we begin by looking at it's consumer retail business, it
quickly becomes clear that the company is anything but a traditional retailer. While Amazon does
sell products at a standard mark-up, it has also pioneered alternate retail strategies by acting as the
gateway for other retailers and a very robust marketplace for used goods. But retail is only part of
the picture when it comes to Amazon.com.
3.1 . Lines of Business
The company itself defines its lines of business in terms of product sales, service sales, AWS,
fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit cards. For
our purposes, I'll define Amazon's lines of businesses as :
a) Online Retail : The online retail line of business includes those products sold by
Amazon as a traditional retailer, most commonly as a low-cost retailer. Amazon claims
to have "Earth's Biggest Selection" of products available through its family of websites,
sold at the lowest cost at a small profit. The company started as an online book seller,
rapidly expanding into music and movies, and ultimately into electronics and household
goods. But Amazon doesn't stock everything that is sold through its website. Another
part of its retail strategy is to serve as the channel for other retailers to sell their products
and taking a cut of every purchase. Amazon maintains its status as a destination website,
but does not have to maintain inventory on slower-selling products. This strategy has
made Amazon a leading long-tail retailer, expanding its available selection without a
corresponding increase in overhead costs. Extending this long tail retail model further,
Amazon introduced the sale of used products through its seller marketplace. Originally
developed to compete with eBay, the seller marketplace provides another retail revenue
stream for the company without the need to stock products in its warehouses.
Advertising and shipping are handled exclusively by sellers, with Amazon taking a cut
of every sale simply for providing the channel.
b) Internet Services : Amazon's Internet services cannot easily be discussed as a
standalone line of business because it is deeply intertwined with both its retail business
and the Kindle ecosystem. From the consumer perspective, Amazon has begun to
provide services like Amazon Prime, which provides free two-day shipping on retail
purchases, on-demand video streaming, and free access to the Kindle library, all for an
annual fee. Amazon Prime overlays the subscription and all you can eat business models
with the retail model to provide additional customer value. Unknown to most Amazon
customers, however, are the other Internet services provided by Amazon, referred to as
AWS (Amazon Web Services). Originally developed as a side business, Amazon decided
to lease out its own server space to other companies and individuals. While not a core
part of the company's strategy, Amazon found itself managing a large number of servers
and Internet services, and it was a fairly small effort to manage those services for others.
c) Kindle Ecosystem : Amazon has expanded its business into manufacturing and
distributing the family of Kindle tablets. Originally designed as an electronic book
reader (supplementing its online book seller business), the Kindle has become a fully
functional tablet and media device. With the Kindle, Amazon serves as both
manufacturer and traditional retailer (and also wholesaler by selling the device through
other retailers).
While the company does not admit as much, it is assumed that the Kindle devices are
sold at a loss, which would more correctly put this line of business into the razors &
3
8. blades category of business model. By selling the hardware at a loss, Amazon is betting
that customers will purchase enough electronic books, games, and videos to justify the
initial loss.
3.2 . Business Models :
Amazon has three distinct businesses, plus a slew of nascent enterprises and developing
opportunities :
a) Amazon Retail
Starting in books and then expanding into electrical and other goods, Amazon built an online
retail business around three aims:
➢ Best prices: Amazon products are generally offered at a discount, a steep discount in the
case of books.
➢ Unrivaled selection: Amazon often has the largest selection of goods in a particular
category, especially books (outside S/H marketplaces like Abebooks).
➢ Convenience: Amazon focus on the customer and try make purchasing an enjoyable
experience, offering:
An attractive, easy-to-use customer interface (which evolved through many trials).
Fast and reliable delivery from vast, fully automated warehouses, first located in
strategic spots in the US but increasingly worldwide.
A no-nonsense returns policy.
Reviews by customers of the product.
Purchase suggestions based on previous purchases and web page viewing (an
example of Real time systems).
b) Amazon Marketplace
Amazon also offers a third-party selling platform, Amazon marketplace, that allows
merchants to offer goods and services through an online shopping mall. Amazon charges a
commission based on a formula involving the sale price of the item, a shipping credit, a
referral fee of 6-25% of the sale price, a variable closing fee and a $0.99 fixed closing fee.
This has now been augmented or replaced by four comparable services:
Sell on Amazon : Merchants pay $39.99 per month, plus a commission varying as
above, generally between 15% and $1.35 per item.
Amazon Webstore : More complete service. Merchants pay $24 per month plus 2%
of sales.
Checkout by Amazon : Similar to PayPal and Google Checkouts, but needs to
integrated into shopping cart.
Fulfillment by Amazon : Allows merchants to use Amazon's advanced fulfillment
technology.
The services are being expanded from USA, Canada, UK and Germany to other countries.
Amazon does not release information on these businesses, either revenues or usage levels.
c) Amazon Web Services
Amazon leveraged the technology it developed in retails to offer an increasing number of
web services :
1. Computer- Related
• Amazon Elastic Compute Cloud
• Amazon Elastic MapReduce
• Auto Scaling
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9. 2. Content Delivery
• Amazon CloudFront
3. Database
• Amazon SimpleDB
• Amazon Relational Database Services
4. Deployment & Management
• AWS Elastic BealStalk
• AWS CloudFormation
5. E-Commerce
• Amazon Fulfillment Web Service
6. Messaging
• Amazon Simple Queue Services
• Amazon Simple Notification Services
• Amazon Simple Email Service
7. Monitoring
• Amazon CloudWatch
8. Networking
• Amazon Route 53
• Amazon Cirtual Cloud
• Elastic Load Balancing
9. Payment & Billing
• Amazon Flexible Payment Services
• Amazon DevPay
10. Storage
• Amazon Simple Storage Services
• Amazon Elastic Block Storage
• AWS Import/Export
11. Support
• AWS Premium Support Web
• Traffic Alexa Web Information Services
• Alexa Top Sites
12. Workforce
◦ Amazon Mechanical Turk
3.3. E - commerce Strategies :
3.3.1. Amazon.com’s Generic Strategy(PORTERs Model) :
Amazon’s generic competitive strategy enables the e-commerce business to offer goods and
services at affordable rates. Amazon uses cost leadership as its generic strategy for competitive
advantage. Minimization of operational costs is the objective in this generic competitive strategy.
For example, Amazon.com uses advanced computing and networking technologies for maximum
operational efficiency, which translates to minimized costs. Considering the nature of e-commerce,
the company benefits from process automation, which is generally used in purchase processing,
scheduling, and other operational processes. These benefits enable Amazon.com Inc. to minimize
the cost of its online retail and other services.
5
10. Fig 1 : Porters Model
A strategic objective linked to Amazon’s cost leadership generic strategy is to build e-commerce
competitive advantage through continuous improvement of information technology infrastructure.
In relation, the company also has the strategic objective of heavily investing in research and
development (R&D) to optimize the performance of its IT resources. In addition, the cost leadership
generic competitive strategy pushes Amazon.com Inc. to minimize its price levels. This strategic
objective impacts Amazon’s marketing mix. The low prices are significant in attracting consumers.
Thus, through the generic strategy of cost leadership, competitive advantage is gained to support the
fulfillment of Amazon.com Inc.’s mission statement and vision statement, especially with regard to
online retail global growth and leadership.
3.3.2 . Amazon.com’s Intensive Strategies (Intensive Growth Strategies) :
a) Market Development. Amazon uses market development as its current primary intensive
growth strategy. Entry and growth in new markets is the main objective in this intensive
strategy. Amazon.com Inc. adds new countries where it offers its services. For example, the
company initially provided its online retail services to consumers in the United States.
Amazon now operates e-commerce websites in more than 10 countries, including Canada,
the United Kingdom, China and India. Each new country is considered a new market that
creates growth opportunities for the firm. Amazon’s generic strategy builds competitive
advantage that allows the company to implement this intensive strategy of market
development. A strategic objective related to this intensive growth strategy is for
6
11. Amazon.com to establish new online retail websites that correspond to new countries added
to the company’s global market reach.
b) Market Penetration. Market penetration is a secondary intensive growth strategy in
Amazon’s online retail business. The objective of this intensive strategy is to generate more
revenues from the markets where the company currently operates. Amazon.com grows with
increasing consumerism. For example, as consumers develop increasing interest in online
retail, the company benefits from higher sales revenues, especially when considering the
popularity of the Amazon brand. Market penetration is responsible for the initial rapid
growth of Amazon.com Inc. in the United States. The company’s generic strategy creates the
competitive advantage necessary to penetrate markets based on low costs and prices. A
strategic objective based on this intensive growth strategy is to implement an aggressive
marketing campaign to attract more consumers to Amazon’s e-commerce website.
c) Product Development. Amazon.com Inc. applies product development as a supporting
intensive strategy for business growth. Developing and offering new products to gain higher
revenues is the goal of this intensive growth strategy. Amazon grows partly by developing
new products over time. For example, the company now offers Amazon Basics products and
Amazon Web Services (AWS). The company’s cost leadership generic strategy supports this
intensive strategy by providing the company with low-cost business processes to introduce
new products. A strategic objective related to this intensive growth strategy is to increase
research and development (R&D) investment for rapid product development and release to
the online retail market.
d) Diversification. Diversification is the least significant among Amazon’s intensive growth
strategies. Growth based on new business is the objective in applying this intensive strategy.
For example, Amazon grew through its acquisition of Audible, which is a producer of audio
books and related products. In this regard, the company partly uses acquisition to implement
this intensive growth strategy. Amazon.com Inc.’s cost leadership generic strategy enables
the organization to grow in diversification by applying the same approaches to minimize
operating costs and selling prices. A strategic objective associated with this intensive
strategy is to grow the e-commerce business through an aggressive acquisition strategy.
e) Customer Relation Management Strategy : When a customer first enter into Amazon.com
he/she is provided “ Featured Product “ by the website, But when the customer visit for the
second time the recommender system automatically provide products by studying customer
interests and personality. Customer acquisition and retention has been the most priority to
Amazon.com s strategy. Through web site Amazon maintain sophisticated communication‟
that automates the process of creating value for the customer.
f) Associate Program : To boost the customer traffic and rate of sale Amazon.com started a
associate program with customers and small businessman. Approximately 200,000 websites
have enrolled in the associate program.
3.3.3. Amazon’s User Reference Strategies:
a) Personalize the Shopping Experience :
7
12. One thing that Amazon does very well is personalizing the shopping experience to each user.
Going to Amazon’s homepage you’ll see different sections such as “Related to Items You’ve
Fig 2 : Personalize the Shopping Experience
Viewed,” “Inspired by Your Shopping Trends,” Recommendations for You in..,” etc.
Amazon knows that the more relevant the product is to the user the more likely users will
purchase. Online retailers can learn from Amazon and personalize the shopping experience
as much as possible. This may be easier said than done but many common E-commerce
platforms offer 3rd party addons to provide similar functionality. An easier alternative
involves showing users recently viewed products. While it might not be as fancy as
Amazon’s elaborate personalization strategy, it’s a simple way to personalize the shopping
experience while improving the average order value.
b) Make Searching a Breeze
The search bar can have a significant impact on the user experience, especially for larger
online retailers with many products. The faster a user can find their desired product the more
likely it is that the user will purchase. Amazon makes searching a breeze by automatically
suggesting popular products and categories. Other e commerce websites can use this tactic
to drive users straight to the product pages and improve conversion rates.
Fig 3 : Making a Breeze Search
8
13. c) Onsite product reviews
Extensive online product research has become a crucial part of the buying process for
consumers: a whopping 88% of consumers reportedly research products online before
purchasing. The online shopper’s attention span is short, and if they go off-site to search for
product reviews, there’s a good chance they won’t return. Additionally, including product
reviews on-site might be effective in attracting the customers of your competition.
Fig 4 : Customer Review
Clearly displaying product reviews can significantly improve the conversion rate of a
product page. Amazon also leverages email to solicit reviews from customers. This trick can
help other online retailers build social proof for products and boost sales.
d) Free or Minimum shipping Charge
Reducing the cost of Shipping can boost up the customer. In other words, the number one
reason why more than half of your consumers aren’t converting is based solely on the cost
of shipping. It's not always easy or cheap to offer free shipping to customers, but ultimately
it can be a financially effective decision. A simple way to do this without losing profit is to
pinpoint your average order value and average shipping costs, and offer free shipping on a
minimum purchase amount that covers your average shipping cost and provides enough
profit to increase your average order value.
e) 1-click purchase:
Amazon brings 1 click ordering, personalized shopping services and easy to use card
transaction, e-mail communication with customers and direct shipping around the world.
Customer with previously activated functionality can order items clicking only one button
without fulfilling order form. Amazon’s secured server automatically provide the
information required for the registered customer.
f) Secure Credit/debit card payment:
For secure transaction Amazon.com use secured server software. Customer’s personal
information, credit card number and everything is encrypted in order to secure information
over Internet.
g) Customer Care :
“If you do build a great experience, customer tells each other about that. Word to
mouth is very powerful” - Jeffry p. Bezos
9
14. One of the success factors of Amazon.com is word of mouth. Because of excellent customer
service customers trusted Amazon. They used to talk about Amazon.com to other. This
spread rapidly by creating increasing traffic on the web site.
3.3.4. Supply Chain Management (SCM) Strategies:
For the huge success by 2004 the “Supply Chain System” played a huge role. In 2000 amazon spent
good amount in order to build automated warehouse and automated supply chain management. All
the supply chain activities are controlled by CRM system.
a) Enterprise Resource Management (ERP System): Amazon uses oracle as the ERP. It has
huge database which hold information related to customer. Customer s ordering process is‟
automated as the order is taken as it automatically find the nearest distributing center for the
delivery. This system fastens the order fulfillment process with the order tracking and
reduces any distribution mistakes. By this system the company reduced 50% of its customer
service contacts since 1999 because of fewer mistakes.
b) Customer Relation Management (CRM) : In order to gain customer satisfaction and
loyalty Amazon use Customer Relationship Management system (CRM). CRM system
follows the following application to collect information of the customer. All personal
information of customers their credit card record, transaction record, order record, profile,
their past purchase history are collected in the database. The order processing system takes
care of the transaction record with secured transaction method and it delivers instruction to
the delivery system for the execution of shipment. Through customer feedback, customer
interest, wish list, product reviews web page system collect customer information.
Automated communication is ensured with customers through e-mail and massage systems
and order information systems. With the CRM system amazon successfully integrates
customer sales, services and communication.
c) How amazon implement CRM ?
Amazon has extensive implementation of customer relationship management. Each and
every customers are taken in account in Amazon.com.
i. Customer Selection :
Customer selection part through Amazon.com website has given amazon a extra benefit
in order to boost their business. Amazon uses numerous methods to select customer by
knowing their customer behavior. Amazon s early target was people who love books.‟
But days its target market is vast and challenging.
ii. Customer Acquisition :
a) Customer account : Every customer buying through amazon.com has his/her profile
in amazon website. Amazon.com creates a database to store the account, information
of the customer, credit/debit account. Through the customer account amazon knows
about the customer, their personality and last of all can satisfy them.
b) Wish List, review system : Amazon always encourage customer to add favorite items
to the wish list. This helps amazon to know better about the customer. Product
review by customer not only be help customers to find and select product but also
acts as direct marketing event for Amazon.com. Amazon allows making connection
in between the customer, communicating and viewing their interest help to amazon
to gain customer trust and initiate world of mouth. In the first 3 month of 2000,
amazon acquired 3 million new customers without any investment.To satisfy
customer amazon uses information acquired through customer account, wish list etc.
Amazon brought number of system to satisfy customer. 1-click ordering has been an
10
15. excellent system innovated by amazon which revenue less than 20 sec to enable
purchase.
c) Customer Retention: Amazon.com emphasizes customer retention over just
acquisition. An analysis shows 40% of amazon s customers are frequent users. This‟
indicates customer always come back to purchase product in Amazon.com. Amazon
does retain customer very smartly and sincerely by satisfying its best buyer through
good service and effective communication. Integrating lean advertising, service and
selling amazon acquires customer and through great customer experience it retain the
customer.
d) Customer Extension: The market place is very competitive even for Amazon.com
with competitor like e-Bay, best buy breathing very behind amazon. Customers now
days get every single distraction through other competitor s service and brand value.‟
It is very challenging to every retain customers. But even though Amazon s better‟
customer service, trust factor, brand value initiate them rapid and growing customer
popularity. About 70% of amazon s customer trust amazon and recommend amazon‟
to their friend Amazon integrated communication in between customers. This helped
amazon to retain even extends their customers. Customer s reviews of products‟
trusted by other customer and motivate them to buy.
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16. 4. Discussion
After doing the sort of analysis, we tends to find that Amazon is totally uses the Business to
Customer Model. Amazon totally rely on the customer and customer satisfaction is its primary goal.
Amazon handle its better relationship with customer by using CRM such as collecting information
of the customer like as all personal information of customers their credit card record, transaction
record, order record, profile, their past purchase history are collected in the database.
Using of CRM, Amazon provides sort of advantages to the customer like as Personalization, User
ratings and reviews, 1 click purchase, secure way for payment, minimum shipping charge, etc.
Not only this Amazon.com carries out some of Associate programs to boost the customer traffic and
rate of sale Amazon.com with customers and small businessman. Developing and offering new
products to gain higher revenues is the goal of this intensive growth strategy. Amazon grows partly
by developing new products over time.
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17. 5. Recommendation :
Amazon.com is the ultimate online retailer around the world. Its nearest but not even close
competitors are e-bay and best buy. But the competition is growing day by day.
a. Competing in the market:
Like past, amazon in future will have to come up with special something. The global market is
changing day by day. Business competitors are investing large to take amazon down. There is no
room for relaxation. It is very challenging and has to be consistent in the market to be number one
retailer shop .
b. Innovation of new Product:
It is essential for amazon to think out of the box and bring new products to satisfy and retain
customer to be loyal to Amazon.com. Amazon always offered its customer better quality and better
service. But in future it may not be the same. People in today s world ask for more. Amazon has to‟
be smart enough to understand the customer need before even customers know about it .
c. Integration of New Technology:
Technology is making progress like the spread of light. Company like “Amazon” needs to be
adaptive and technology friendly to retain its domination in the market. Amazon s new technology‟
of Drone delivery system indicates it is planning and investing significant amount of money in
technology for near future.
d. Customer Loyalty:
For a upward revenue stream customer loyalty is essential.. Amazon s most of the buyers are its‟
repeat customers who are loyal to amazon. But growing competition can be a risk to amazon s‟
loyal customer .
e. Global Expansion:
Amazon is expanding its business around the world. But this may cause significant strain in number
of sectors like management, inventory, supply system and more over to amazon s market place.‟
International market is very challenging because of political and economic conditions. Upgrading e-
CRM and investing more towards customer information for better understanding the customer
needs and behavior is essential.
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18. 6. Conclusion :
On the part of conclusion we conclude that Amazon.com uses Business to Customer Model for its
better growth. Amazon mainly focuses on the customer satisfaction by providing the various ways
to ensure that like as personalization, user ratings and reviews, minimum shipping charge which act
as the key ingredients for success of Amazon.com. But still Amazon have to do some change on its
system like as Global Expansion, Integrating on New Technologies, Innovation of New products.
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19. 7. References :
a) Manjoo, F. (2011) "The Great Tech War of 2012" Fastcompany October 19th
b) Hottovy, R. (2011) "Amazon.com AMZN Hare Stock Focus" Morningstar StockInvestor
c) Bacheldor, B. (2004)" From Scratch: Amazon Keeps Supply Chain Close to Home"
Informationweek
d) Businessweek (2003) "Reprogramming Amazon" Bloomberg Businessweek December 23th
e) Jenkinson, A. (2005) "Amazon: Bounding Customers with Integrated Service" Centre for
Integrated Marketing, University of Luton
f) Jenkinson A., Sain B. “ Amazon bonding customers with integrated service: Amazon s‟
interest in technology is as a means to deliver value through integration and CRM thinking”,
Luton Business School
g) FAVERNOVEL (2013 updated), “Amazon: The Hidden Empire”
URL: https://www.fabernovel.com/work/amazon-com-the-hidden-empire/
h) Annual report (1998) AMAZON.COM, INC.
URL: media.corporate-ir.net/media_files/irol/97/.../reports/123198_10k.pdf
i) Annual report (1999) AMAZON.COM, INC.
URL:media.corporate-ir.net/media_files/irol/97/.../reports/123199_10k.pdf
j) Annual report (2013) AMAZON.COM, INC.
URL:http://www.sec.gov/Archives/edgar/data/1018724/000119312513028520/d445434d10
k.htm
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