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- 1. Case Study Submitted to: Dr. Aseem Kr. Mishra Submitted by: Amit Kumar Hooda 20DM028
- 2. Amazon.com is an MNC based in Seattle, Washington. The company began as an online bookstore and now focuses on : ▸E-commerce ▸Cloud Computing ▸Digital Streaming ▸Artificial Intelligence Amazon was founded by Jeff Bezosin Late 1994 in Bellevue, Washington. The company began as an online bookstore and has since expanded to a wide variety of other e-commerce products and services. Introduction 1
- 3. • He marketed books first, as he believed they are ideal cyberspace products. • Paying too much attention to short-term gains means forgetting about long-term customer satisfactions. • They spent one year in creating the Web site and database programs that drive Amazon.com. • Amazon is serving to millions of customers in 160 countries and grosses more than $20 in sales per second on its Web site. • Built customer relationships by customizing its service. CUSTOMER AS COPRODUCER AND SERVICE CUSTOMIZATION • Amazon.com integrates customers into the service delivery process. • Customers can participate in the Discussion Board service and can also chat with them. • The “wish list” is another service that Amazon.com offers. • Amazon also makes personalized recommendations to individual customer. 2
- 4. • It uses a mathematical process called collaborative filtering and the software determines other similar searches. • They faced few problems while implementing this process as it’ll start recommending us the product which we aren’t looking for ourselves. • So, they started providing an option for gift. “walking into your favorite store and finding only items that you want on the shelves near the door.” • When repeat customers log on to the Web site, a personalized Web page greets the customer by name and allows him or her to view the new recommendations made by the collaborative filtering tool. • Amazon also allows customers to store information on the company’s secure server. • This technology, called 1-Click, streamlines the service. • If a customer doesn’t visit the site in a certain length of time, Amazon sends an e- mail encouraging him or her to visit Amazon.com 3
- 5. • The Web site avoids large graphics. • Powerful search engine. • Employs a “do what I mean” (DWIM) search function. • The site recognizes the misspellings and make adequate changes. • It allows registered Web sites, such as Yahoo!, to recommend specific books, CDs, videos, and other Amazon products to their visitors using a hyperlink. • The company claims 85 percent of online book sales. An impressive 64 percent of Amazon. com’s business is from repeat customers. • Purchased a 50 percent ownership stake in Pets.com and has a minority stake in Drugstore.com. 4
- 6. Questions Q1) How would you contrast Amazon’s business design with that of Barnes & Noble before Barnes & Noble went online? From a customer’s perspective, what are the advantages and disadvantages of each design? Both started their operations selling books, Amazon in the online world while Barnes & Noble in physical world. The key difference between both companies is while Amazon sells only in the virtual space, Barnes & Noble sells both online and offline. Q2) Will Amazon continue to be successful against “click-and-mortar” competitors, such as Barnes & Noble? Since the brand name of amazon is more recognized as compared to other “click-and-mortar” competitors, it’ll have a competitive advantage over them. Customer first will come to the amazon.com and then shift to other platforms. Q3) Is Amazon.com a model for the future of retailing? Yes 5