Research on Amazon.com for a University Project.

2. Contents…!
- Company Overview
- Business Model
- Additional Material: Articles

3. Early Beginnings…!
Amazon.com sells lots and lots of stuff!
• Amazon was founded in 1995!
• Jeffrey Preston "Jeff" Bezos is the
Chairman of Amazon.com!
You can GET Anything &
Everything at Amazon.com!
SO WHAT DOES AMAZON.COM
SELL?!

4. Founded in
1994 SeaDle, 2005: Pinzon
USA
2006: Voted No.1
In Customer
1999: Amazon Service
2010:Amazon
AucKon, Zshops
Studios
2000: Amazon 2011:
Marketplace 2007: Amazon Appstore
Amazon MP3 Amazon Cloud Player
Amazon Fresh Kindle Touch
2008: Film
Went Public
ProducKon, Amazon
in 1997
Currency Converter

6. 1.) Amazon’s Business Model

7. 1.) Value Chain Analysis
FIRM INFRASTRUCTURE: Central Customer Data Warehouse
GIN
HR MANAGEMENT: Employee Unique Benefits
TECHNOLOGY DEVELOPMENT: High Investments, Unknown
AR
OpportuniKes, Hardware from HP
M
PROCUREMENT: Using SBU: BookSurge, DistribuKon Centers
INBOUND OPERATIONS OUTBOUND
MARKETING
N
LOGISTICS Good LOGISTICS
& SALES
SERVICE
RGI
Return Payment Close
Discounts,
unsold items System, 24 Proximity to Return
Recommen
to supplier, hour Motorways, Policy, Price
MA
daKons,
Warehouse Reach for
collect InteracKve Comparison
customer OperaKon Specific
shipping
info.
locaKons

8. Business Foundation and Model!
Amazon.com uses a mulK‐leveled e‐commerce strategy

9. 2.) CompeKKve Analysis
DIRECT COMPETITORS
• EBay
• Barnes & Noble

10. 2.) CompeKKve Analysis
INDIRECT COMPETITORS
• GAP
• L.L.Bean
• Google.com

11. E-Retailing Strategic Group Analysis!

12. 2.) CompeKKve Analysis
COMPETITIVE STRATEGY
• “Earths Biggest SelecKon”
• Daily AucKons
• Bullet Proof Customer Service
• SynergisKc Effect of… 1. Shopping
Convenience
2. Ease Of Purchase
3. Speed
4. Decision Enabling
Information
5. Wide Selection
6. Discounted Price
7. Reliability of Order
Fulfillment

13. 2.) CompeKKve Analysis

14. 3.) Growth Strategies
BUSINESS MODEL
• Virtuous Cycle
• $14 Billion Retail Machine
• Direct‐to‐consumer Online Model
• Reap Benefits of Technology
Expansion
• Category Expansion
• InternaKonal Expansion

15. 4.) Market Segments
SEGMENTATION
• Based on Actual Purchase Behavior
• Each new purchase slightly alters
recommendaKons
• CollaboraKve Filtering
• Seller Customers: 1.3 million acKve customers
• Developer Customers: Use Amazon Web Services
• Loyalty Program: Amazon Prime (Fee Based)

16. 5.) Value ProposiKon
Convenience Price
SYNERGISTIC
EFFECT
SelecHon Customer Service

17. What makes Amazon a Giant is in the Details?
Customize Buyer’s
Cookies
Experience
Customer Tracking
Personal Shopper

18. 4.) Value ProposiKon
CUSTOMER VALUE
• RecommendaKons: Regular, Gim Giving
• Community: Listmania
• Individual Sellers
‐ Amazon Marketplace
‐ Amazon zshops
‐ Amazon AucKons

19. Amazon’s Gold Box!
Time‐sensiHve discounts. ANer a specified period of
availability the offer disappears.

20. 6.) Revenue Model
REVENUE
• Online Bookstore to Online Shopping
• Amazon Marketplace: fixed price online marketplace
• 64% revenue from books, music video
• Amazon Advantage: 10‐15% of Sales
• Affiliate Partnership MarkeKng
‐ Amazon pays commission to site owner
• NegaKve operaKng cash flow cycle
‐ Amazon is paid by customers
before it needs to pay suppliers

21. Article 1!
Amazon may benefit as digital goods
sales jump
• Fastest growing category this holiday season
• Kindle Fire Tablet ‐ $199
• Aggressive pricing – Volume Sales
• Increasing availability of devices
• Increasing Downloads
• Trend expected to rise in 2012

22. Article 2 !
Amazon’s AWS Storage Gateway to
connect with Cloud
• Amazon Web Services announced the
Gateway for reliable & Cost –effecKve Storage
on the AWS Cloud
• Amazon ElasKc Compute Cloud: For
addiKonal capacity during peak periods
• Will reduce cost of data storage and
compuKng infrastructure