amazons final
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GROUP 10PradeepPrathiba
SilpiSureka
Yuba Raj
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By 2003, Amazon became most recognised
brand in the world
Number one global online service provider Six web sites, 32million customers over 150
countries
Core strategy customer-focused innovation Amazon grabbed the opportunity of
technology development
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Source: Business Model Generation , Osterwalder, Pigneur, & al. 2010
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Lesssalestax
Seattle(proxim
ity)
Webtechno
l-ogy
Powerfulsearch
facility
Largerangeof title
Onlybooks
Branding, manualloading cost
No competition
Personalnotification,
recommendation &
rewards, associate
program
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Partnership
Low pricingstrategy
IPO 3million
shares ;raised $50million
Strategicassets
Yahoo.com,
AOL.com, Netscape
Net centre,@Homenetwork,
GeoCities Network,Excite
Recruitment of Richard
Dalzell expert in
merchandising & logistics,supply chain system,international retailing,
commercial decision
support
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Computerworld Smithsonian Award First place in Business andRelated Services
Music, internetmovie database
Expansion in UK,Germany
New talented HR Jimmy Wright
Direct purchasefrom manufacturer
Strategicpartnership - Intuit
Productdevelopment
strategy amazon.com kids
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Managementstrength-WarrenJenson, Jeffrey
Wilke
Product
developmentstrategy
continues..toys,games,electronics
Strategicinvestments-
drugstore.com,pets.com
Product innovation
RecommendationsCentre, Purchase
Circles TM
Strategicinvestments-acquisition of
Exchange.com &Biblinfind.com
New distributioncentre in US, UK
and Germany
Strategicrelationship with
DELL
Well established
Brand image
Amazon.com Cards
Amazon.com AnywhereWish List
All product search
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Technologyburst
Newinnovations, corporate
relationship
StrategicInvestment
Ashford.com,eZiba.com
MoreStrategic
assets
Severe drop in share
price from $64.56 to$15.56
75% share holder value
wiped outBut Amazon moved
through a similarmomentum
Paul Misener, Vice
President of Global
Public Policy, DiegoPiacentini, General
Manager
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Market extensionstrategy France
and Japan
Cost reductionstrategy -employee,
warehousereduction
1st time profit of $64million in 2002 sales
growth 13%
Continuous
innovation
New initiatives tostrengthen the
profitability
Launching WebService, Office
Depot
Strategic alliance -Virgin
Entertainment,focus on Apparel &
Accessories
Customer focusedcollect products in
Borders book shops,trade used items
Threat illegalcopying of OneClick
technology
Look inside the book,
co-branding, instant
order updates, opening
travel store, virtual
credit cards
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More strategic assets in HR William Gordon, artistic and
marketing expert
More product development e-commerce agreement
extension, Sporting GoodsStore launched, Search inside
the book
Strong brand name furtherdeveloped quick response tocustomer requests e.g. Harry
Potter book distribution
Threat e-mail spoofingRemedies Anti-spoofing site
most successfulyear - marginsstable at 25%
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Key objectives
Customer
Centric throughinnovation
Mission
We seek to be Earths mostcustomer-centric
companyfor three primary customersets: consumer customers,
seller customers anddeveloper customers.
Vision
to be earth's most customercentriccompany; to build a
place where people cancome to find and discover
anything they might want tobuy online.
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Amazon.com is the mostvast global online
shopping complex
Strong values customer satisfactionand operational frugality
KeyCompete
ncies
TechnologyDevelopment
Forward,backward
integrations
Continuousproduct and
marketdevelopment
StrategicAlliances
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Introduced Amazon Kindle in 2007 palmtop which reads newspapers, books
digitally; Say good bye to printing,Kindle
evolved year by year
Launched Best Seller Archive - allows
customers to view historical bestsellers inBooks, Kindle Books, MP3 Downloads,Movies &TV, Music,Video,Video GamesandVideo On Demand
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Amazon Prime 2005 all-you-can-eat expressshipping; unlimited two-day shipping for free
One-ClickT
echnology Amazon Jewellery Store 2004 more than 100,000
customers, low-priced high quality Amazon leases digital storage
Elastic Compute Cloud (EC2) service - leasescomputing horsepower over the web
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Millions of items available for immediate shipping-Price, Selection, Convenience
Sustainable seller Environmental friendly, Greenproducts, reduce package wastage
Highest American Customer Satisfaction Award in2004 highest score (88 points) ever recorded online
or offline Successfully achieving its mission and vision-Amazon
has entered the harvest stage
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2009 revenue: $24.1 billion (est.), up26%
Reported a net income of$384 million Sales rose 42 percent to $9.52 billion. 2009 stock price: Up 176% Acquisitions since 1/09: 3.
notably Zappos ($1 billion) Sells an estimated 90% of eBooks
sold.
1. Facebook
2. Amazon3. Apple4. Google5. Huawei
6. First Solar7. PG&E
8. Novartis9. Walmart10. HP
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