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  1. 1. Presented By: Rhythm Raghu Ravinder Singh Taranjeet kaur Venus
  2. 2. Online retail shop
  3. 3. A little about us…Founded in 1995; Started selling books online and now operate Web sites that offer various products and services, which include: music, DVDs, videos, electronics, camera and photography, clothing apparel, shoes, etc.Features include: one-click shopping, customer review and e-mail order verification.Headquarters is in Seattle (Washington) . It has six global websites to serve domestic customers in the US, the UK, Germany, France, Japan and Canada
  4. 4. History In May 1997 completed its initial public offering (IPO). In the same year,1997, they signed advertising and promotional agreement with – America online, yahoo , Netscape, geocities… April 1998 the company acquired online bookstores in U.K. and Germany : first international expansion In 2000 launched in Japan and France
  5. 5. Vision Statement Our vision is to be Earths most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.
  6. 6. Mission Statement The company’s six core values: customer obsession, ownership, bias for action, frugality, high hiring bar, and innovation. The company motto: ‘Work Hard, Have Fun, and Make History’.
  7. 7. Where we stand today..most frequent used web site.Largest internet-based sellers.Offering over 4.7 million discounted books .CDs, DVDs & videos. computer games.audio books and video tapes .85% share of online book sales .six million customers in more than 160 countries.
  8. 8. Historical Product Introduction andGeographical Diversification
  9. 9. AMAZON.COM Business Model Shopping convenienceCreates value for costumers ( from home to office) Decisions-enabling information by offering: Discounting Prices Ease of purchase A Wide Selection Speed Reliability
  10. 10. S W O T• Strength • Weakness • Opportunit • Threat y
  11. 11. STRENGTHS: Strong management team Strong customer service support Up-to-date technology and software High brand name recognition Strategic alliances Increased revenue from international segment High inventory turnover
  12. 12. WEAKNESSES: Accumulated deficit of $3 billion Operating losses Interest payments on debt issued High inventory risk – seasonalityBreach of customer confidential information
  13. 13. OPPURTUNITIES Construction of an extensive community of buyers Internet taxes prohibited by the Internet Tax Freedom Act (1998) and its extensions (2001 and 2003) Growth of internet users in the next five years, predominantly in the international market E-commerce expansion in Asia and the Pacific Several product categories with high penetration of retail on-line sales 13% jump of Latinos going online in 2003 in the US since 2001
  14. 14. THREATS:eBay, Barnes & Nobles, and Wal-MartPossible rejection to on-line sale in international markets if new taxes (Value Added taxes: VAT) in products are leviedPopulation segment not targeted to on-line sales due to their lack of internet accessCompetition will increase due to the low barriers to entry in the market: offline companies are coming online
  15. 15. BCG Matrix Relative Market Share Position High 1.0 Medium .50 Low 0.0 High Stars Question Marks +20 Domestic International Med 0IndustrySales Cash Cows DogsGrowthRate Low -20
  16. 16. STRATEGY : CATEGORISATION of product , discounted prices, Can post and read the reviews about product Few examples:  A costumer can listen to the sample music before purchasing it.  Can compare his products with various other available products.TARGETING : internet users, who do not have time to go to retailers . Few example:  Business professionals working in MNCs with odd shift timingsPOSITIONING : order anything by just one click and costumer will receive their products at their door step. Few examples:  costumer can purchase anything from anywhere
  17. 17. Business Strategy Electronically communicated with the costumers Send a confirmation message at the time of order received and during processing. Costumers can track delivery status online using a key code number.
  18. 18. C- CUSTOMER NEEDS  Customer-centric environment  Internet is 24/7 available medium  Information can be downloaded immediatelyC- COST Discounted price- due to vertical integration Cost reduction through e-marketing
  19. 19. C-CONVENIENCE Order from home or office Delivery at door step One click shoppingC-COMMUNICATION Informing customer at every step  Answering emails within 24 hours  Virtual communities
  20. 20. COMPETITORSBARNES AND NOBLES.COMStrategic alliance with German media- BertelsmannDirect relationship with some 20,000 publishers anddistributors750,000 titles available for same day shippingBut have only 10 percent market value of
  21. 21. FEW OTHER COMPETITORS Retail stores E-bays Wal-Mart
  22. 22. CUSTOMER RELATIONSHIPMANAGEMENT Greets customer by name Recommendation based on past behavior Sort order by departments(segregation) Delivery confirmation Customer feedback process Respond quickly to customer problem & queries Complaint management and resolution policies Training processes at different levels
  23. 23. Questions Approximately a quarter of’s sales areto overseas costumers. How could amazo.comstructure its costumer service department to betterserve an increasingly international andculturally/linguistically diverse costumer base?Should have “country specialists” formarket where it lacks an overseas presence? Why orwhy not?
  24. 24. Answers Quarter of the total revenue come from the international market Needs and wants of costumers varies from place to place(according to social, cultural and environmental conditions)SUGGESSIONS : Should have separate head offices for different countries Sufficient amount of complaints and service centers according to geographical areas Different sets of complaint service centers for different languages Instead of IVR based complaints system, manual costumer care executive should be there.
  25. 25. How could better measure costumer service? How could the costumer service manger implement a continuous improvement process? What companies would you benchmark and how?
  26. 26. Answers 24/7 toll free number for both international and domestic costumer On job and classroom training to the employees for handling different types of costumer On the spot repair facility IVR(Integrated Voice Response) can be replaced by manual C.C.E(costumer Care Executive) Bench mark companies DELL