Donald TaborCharles Range

Demetrius FergusonJames MenziesNingchen Xiong

Firm Overview & Initiative

• Large E-commerce presence• Expand into a brick and mortar retail location in NYC

• Kiosks in California • Sample sales and data collection

• Motives Increase sales Ease distribution and returns Marketing and branding

Amazon’s Current Retail Strategy Mix• Product

Diversity

• Price Low

• Location Internet New brick and mortar

• Communication Online promotion

• Operations Management Finance/Administration/HR

Target Market

• Current target market: Anyone Current market must have Internet access Outliers include youth and elders Amazon addresses all non-perishable consumer needs

• Brick and mortar target market: NYC population• Streamlined inventory matching NYC purchase data• Large electronics inventory targeting young adults

Value Proposition

• Selection Widest selection of goods on the internet Consumer can find everything they need

- improves the E-commerce search function

• Convenience Store is online, consumers do not have to leave their house Delivery is quick

• Price Amazon offers extremely low prices due to their low overhead costs

• prices due to their low overhead costs

Pros of a Brick and Mortar Location

61% of consumers prefer to shop in a bricks and mortar retail locations

40% of shoppers that go to brick and mortar locations spend more than they intend to before arriving at the store

Pros of a Brick and Mortar Location

• Allows the customer to physically see the products they want to potentially purchase (Tablets)

• Opening in New York City, which has the highest population in the US

• Stores may double as distribution and return center for online purchases

Cons of a Brick and Mortar Location

• Storefront costs

• Product selection?

• Low price standard and high cost of operations

• Data reliance (weakness?)

Urgency of Initiative

• Brick and Mortar location developed to compete in electronics and gadget market• Distribution center: supply chain simplicity and ease• Conclusion: low-moderate urgency

Dominating E-commerce market (largest online retailer) Tactic to grow the company as a whole

Fit of Initiative to Target Market

• Streamlined product offerings in brick and mortar location Based on NYC consumer e-commerce purchasing activity (data collection)

• Amazon must: Assess needs of NYC population Provide quality customer service Adjust to and identify seasonality of purchases

• Initiative & elder consumer market Fear of online shopping

Implications to Current Retail Strategy Mix

• No implications to current E-commerce retail strategy mix• Potential Issues:

Operations cost unbearable- Renting costs- Staffing- Maintenance of facility- Marketing and promotion

• Conclusion: If the brick and mortar location is unsuccessful the impact will be

minimal to the overall success of Amazon

Questions?