amazon japan for presentation
DESCRIPTION
amazon in Japan from Mike Peng 2009 Our IB classTRANSCRIPT
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TEAM MEMBERS:Yurong Liu
Melody HaddockVan Huynh
Vanessa LopezUsoro Itata
Amazon In Japan
Amazon In Japan
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How Amazon leveraged its capabilities to succeed in Japan?
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Agenda
• Company Background• Critical Issues• Strategic Analysis• Recommendations• Questions & Answers
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Company Background
It was named after the great river in Brazil nourishing the most abundant live species, because it supply the most abundant books and other gadgets online.
• Founded by Jeff Bezos
• Time magazine's Person of the Year in 1999.
• U.S. News & World Report as one of America's Best Leaders in 2008
Amazon RiverIn Brazil
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Overview of Amazon.com
Old days
• Major business is selling books online • Competing with traditional bookstores, such as Barnes &
Noble, Inc.
Today
• Selling diversified products, including DVDs, CDs, MP3 downloads, computer software, video games, furniture, food, etc.
• Competitors: Barnes & Noble, eBay Inc. and Wal-Mart
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Strategic Analysis
Amazon.com has established separate websites in Canada, the United Kingdom, Germany, France, Japan, and China
amazon.co.jp was established in 2007
• Invested $8 billion • Setback due to
Saihan system • Come back with
different strategy
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Critical Issues
Japans Internet Usage• Japanese are the pioneers of internet and mobile technology• Ranked 3rd in the world Japan has 93.4 million internet users
Competitors in Japan Market• Softbank - broadband company , sole provider of the iPhone and iPad in
Japan• Rakuten – broadband company, recently bought buy.com
– B2B2C company without a warehousing function
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Critical issues of doing business in Japan
• Japan appears as a lucrative market as • Japanese are voracious readers• Less concentrated than American market• Most Japanese bookstores are brick-and-mortar forms
• But Japan poses:• Legal hurdle• Saihanbai Kakaku iji Seido system fixing book prices: outlaw price
competition• Directly attack Amazon’s strategic positioning as low-price online book
store
• Cultural roadblock• Fear of fraud refraining internet credit card purchases in Japan• Hard to facilitate online purchases
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Strategic Analysis (continued)
• Physical – Headquarters in Seattle WA
– Extensive distribution channels
– Strategic relationship with major logistic agencies and local shipping agencies
• Organizational– Completely customer centric company – “… to build a place where people can come to find and discover
anything they might want to buy online. “
• Technological• Cutting-edge technologies (IT platforms, CRM softwares, databases)
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Strategic Analysis (continued)
• Human:– “Work hard, Have fun, Make history”
• Innovation (Amazon’s key leveraging capabilities in Japan)– Innovate or Evaporate !!!!!
• Overcome competition: – Introduce new products Amazon Kindle DX, Amazon Scan
search, Japan Jewelry Store, etc…
– Offer point reward systems and free shipping
– Maintain “Amazon marketplace”
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Strategic Analysis cont
• Overcome legal barriers - Saihan : – Switch strategies from books to consumers products (60%)
• Overcome cultural barriers: – Accept ATM payment (unique in Amazon Japan subsidiary)– Excerpt reading” to suite the taste of Japanese’s
tachiyomi custom.
• Reputational: – No 1 online retailing entity in Japan 2009.
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SWOT ANALYSIS
• STRENGTHS– Well-built global brand name– Cutting-edge technologies– Strong financial capabilities– Good corporate culture and customer service– A highly innovative organization with effective research teams– Extensive network of business supporters (distribution channels,
financial entities)
• WEAKNESSES– Very strong competitors (i.e. Rakuten Japan)
– World fuel price escalations
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SWOT ANALYSIS
• OPPORTUNITIES• Online retailing is on the growth, not only in Japan but also
worldwide
• Customer’s technology awareness is enhanced.
• Many opportunities for acquisitions of new business or business partnership especially profitable brick-and-mortal firms in Japan.
• THREATS• Brand dilution (inherent risk upon diversifying product lines)
• Merely dependent on technology maintenance and development
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Recommendations
To sustain its growth in Japan, Amazon needs to:
• Continuously do market research
• Maintain and improve its distribution channels
• Build up a trustworthy relationship with local authorities
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Conclusion
• Amazon.co.jp is on the rise
• Critical Issues
• Financial Capabilities
• Good Corporate Culture
• Has room for expansion
http://www.youtube.com/watch?v=Q-RVjhH1L1s&NR=1
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Thank you for your attention!
Any Questions or comments?
Thank you for your attention!
Any Questions or comments?