Amazon began in 1995 as an online book retailer founded by Jeff Bezos and is now a global e-commerce leader. It has expanded significantly beyond books to include products like consumer electronics, clothing, and content. Through strategic diversification and an emphasis on customer experience, Amazon has grown into a massive company worth over $100 billion annually. However, new competitors and the complexities of additional product lines also present challenges to Amazon's continued dominance.

1. -Evolution of an E-Tailing

2. INTRODUCTION
 Core Area : E- Retailing Business
 Founder: Jeff Bezos
 Headquartered: Seattle,
Washington, United States.
 Deals in : Retail, Consumer
Electronics & Digital content
 Current Net worth: $100 billion,
2012
 Revenue in 2012: $48 billion
 Subsidiary Ventures: Computing
Services, Content Production,
Amazon local, Amazon wireless
services

3. HISTORY OF FUTURE
 The company was founded in Bezos'
garage in Bellevue, Washington.
 "Amazon" name was chosen because it
was a place that was "exotic and
different" and it was one of the biggest
rivers in the world, as he hoped his
company would be.
 In July 1995, the company began
service and sold its first book on
Amazon.com: Douglas Hofstadter's
Fluid Concepts and Creative Analogies:
Computer Models of the Fundamental
Mechanisms of Thought
 In October 1995, the company
announced itself to the public.
 It finally turned its first profit in the
fourth quarter of 2001: $5 million
(i.e., 1¢ per share), on revenues of
more than $1 billion

4. THE “IDEA” HE CASHED IN.....
“ Look at e-retailing. The key
trade that we make is that we
trade real estate for
technology. Real estate is the
key cost of physical retailers.
That’s why there’s the old saw:
location, location, location.
Real estate gets more
expensive every year, and
technology gets cheaper every
year. And it gets cheaper fast.”
- By Jeff Bezos

5. REVENUE MODELS
Sales revenue
model
Transaction
fee revenue
model
Subscription
revenue
model
Advertising
revenue
model
Affiliate
revenue
model

6. THE AMAZONS BUSINESS MODEL

7. JOURNEY FROM BOOK-TAILER TO
CROSS SELLER
• In addition, as a
product, books were
easy to ship since they
were not bulky, they
represented a low
value (and risk) item
• Amazon wanted to get
a greater share of
each customer’s
overall shopping
basket
Economies
of Scale
Forever
Small
Blessings of the
wall street

8. CROSS SELLING: PRODUCT
DIVERSIFICATION

9. CHALLENGES FACED BY THE
UNCHALLENGED
Brand
New
products
complexities
Amazon.com
Competition
Cost of
Complexities

10. OTHER VENTURES

13. CUSTOMER REVIEW METHODLOGY
• Amazon allows users to submit
reviews to the web page of each
product. Reviewers must rate
the product on a rating scale
from one to five stars.
• Amazon provides a badging
option for reviewers which
indicate the real name of the
reviewer or which indicate that
the reviewer is one of the top
reviewers by popularity.

14. CONTENT SEARCH
• Search Inside the Book" is a
feature which allows
customers to search for
keywords in the full text of
many books in the
catalogue..There are
currently about 300,000
books in the program.
Amazon has cooperated
with around 130 publishers
to allow users to perform
these searches.

15. AMAZON SALES RANK
• The Amazon sales rank
(ASR) provides an
indication of the
popularity of a product
sold on any Amazon
locale. It is a relative
indicator of popularity
that is updated hourly.
Effectively, it is a "best
sellers list" for the
millions of products
stocked by Amazon

16. AMAZON TECHNOLOGY
• The core technology that keeps
Amazon running is Linux-based. As of
2005, Amazon had the world’s three
largest Linux databases, with
capacities of 7.8 TB, 18.5 TB, and 24.7
TB. The central data warehouse of
Amazon is made of 28 Hewlett Packard
servers with four CPUs per node
running Oracle database software.
• Amazon employs Netscape Secure
Commerce Server using the Secure
Socket Layer protocol which stores all
credit card details in a separate
database.

17. MULTI- LEVEL SALES STRATEGY
 Amazon started off by focusing on Business-to-Consumer relationships
between itself and its customers, and Business-to-Business relationships
between itself and its suppliers but it then moved to incorporate Customerto-Business transactions as it realized the value of customer reviews as part
of the product descriptions.
 Some other large e-commerce sellers use Amazon to sell their products in
addition to selling them through their own websites.

18. PROMOTION STRATEGIES
Online
advertising
Sponsored
search
Promotion
Strategies
Portal
advertising
E-mail
campaigns

20. STRENGTH

21. WEAKNESS

22. Opportunities

23. THREATS