amazon.com business model

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Research on Amazon.com for a University Project.

TRANSCRIPT

- Company Overview

- Business Model - Additional Material: Articles

Contents !

Early Beginnings!

Amazonwasfoundedin1995 !JereyPreston"Je"BezosistheChairmanofAmazon.com !

SOWHATDOESAMAZON.COMSELL?!

Amazon.comsellslotsandlotsofstu!

YoucanGETAnything&EverythingatAmazon.com !

Foundedin1994SeaDle,

USA

WentPublicin1997

1999:AmazonAucKon,Zshops

2005:Pinzon

2007:AmazonMP3AmazonFresh

2008:FilmProducKon,AmazonCurrencyConverter

2006:VotedNo.1InCustomer

Service2010:Amazon

Studios

2011:AmazonAppstore

AmazonCloudPlayerKindleTouch

2000:AmazonMarketplace

1.)AmazonsBusinessModel

FIRMINFRASTRUCTURE:CentralCustomerDataWarehouse

HRMANAGEMENT:EmployeeUniqueBenets

TECHNOLOGYDEVELOPMENT:HighInvestments,UnknownOpportuniKes,HardwarefromHP

PROCUREMENT:UsingSBU:BookSurge,DistribuKonCenters

INBOUNDLOGISTICSReturn

unsolditemstosupplier,collect

customerinfo.

OPERATIONSGood

PaymentSystem,24

hourWarehouseOperaKon

OUTBOUNDLOGISTICSClose

ProximitytoMotorways,ReachforSpeciclocaKons

MARKETING&SALESDiscounts,RecommendaKons,

InteracKveshipping

SERVICEReturn

Policy,PriceComparison M

ARG

IN

MAR

GIN

1.)ValueChainAnalysis

Amazon.comusesamulKleveledecommercestrategy

Business Foundation and Model !

2.)CompeKKveAnalysis

DIRECTCOMPETITORS

EBayBarnes&Noble

2.)CompeKKveAnalysis

INDIRECTCOMPETITORS

GAPL.L.BeanGoogle.com

E-Retailing Strategic Group Analysis !

EarthsBiggestSelecKonDailyAucKonsBulletProofCustomerServiceSynergisKcEectof

2.)CompeKKveAnalysisCOMPETITIVESTRATEGY

1. Shopping Convenience

2. Ease Of Purchase 3. Speed 4. Decision Enabling

Information 5. Wide Selection 6. Discounted Price 7. Reliability of Order

Fulfillment

2.)CompeKKveAnalysis

3.)GrowthStrategies

BUSINESSMODEL

VirtuousCycle$14BillionRetailMachineDirecttoconsumerOnlineModelReapBenetsofTechnologyExpansion

CategoryExpansionInternaKonalExpansion

4.)MarketSegmentsSEGMENTATION

BasedonActualPurchaseBehaviorEachnewpurchaseslightlyaltersrecommendaKons

CollaboraKveFilteringSellerCustomers:1.3millionacKvecustomersDeveloperCustomers:UseAmazonWebServicesLoyaltyProgram:AmazonPrime(FeeBased)

5.)ValueProposiKon

Convenience

Price

SelecHon

CustomerService

SYNERGISTICEFFECT

WhatmakesAmazonaGiantisintheDetails?

CustomizeBuyersExperience

CustomerTracking PersonalShopper

Cookies

4.)ValueProposiKonCUSTOMERVALUE

RecommendaKons:Regular,GimGivingCommunity:ListmaniaIndividualSellersAmazonMarketplace

Amazonzshops

AmazonAucKons

TimesensiHvediscounts.ANeraspeciedperiodofavailabilitytheoerdisappears.

Amazons Gold Box!

6.)RevenueModelREVENUE

OnlineBookstoretoOnlineShoppingAmazonMarketplace:xedpriceonlinemarketplace64%revenuefrombooks,musicvideoAmazonAdvantage:1015%ofSalesAliatePartnershipMarkeKngAmazonpayscommissiontositeowner

NegaKveoperaKngcashowcycleAmazonispaidbycustomers

beforeitneedstopaysuppliers

Article 1 !

Amazonmaybenetasdigitalgoodssalesjump

FastestgrowingcategorythisholidayseasonKindleFireTablet$199AggressivepricingVolumeSalesIncreasingavailabilityofdevicesIncreasingDownloadsTrendexpectedtorisein2012

Article 2 !

AmazonsAWSStorageGatewaytoconnectwithCloud

AmazonWebServicesannouncedtheGatewayforreliable&CosteecKveStorageontheAWSCloud

AmazonElasKcComputeCloud:ForaddiKonalcapacityduringpeakperiods

WillreducecostofdatastorageandcompuKnginfrastructure