Irene Torres | Disa Riliana Pakpahan |

Shakti Shikhar
MiM IB FI | IE Business School

Company Overview

Current Net Worth

$59.8 Billion

Net Profit 2013

$241 Million

Sales 2013
$74 Billion

Market Share
30%

Average ROE
3%

Inventory Turnover
700%; DI 50 Days

Outlook

The E-Commerce Industry

(PLC)

Market Share

The E-Commerce Industry

Outlook

Introduction

Growth

Mature Decline

Time

Problem Identification

Problem

Obstacles to
Implement AVs in
Innovation

Should they
wait?

Impact on
Stakeholders

Corporate Strategy
Concentric Diversification
Acquiring new companies

Strategy

Creating new technology

Corporate Strategy
(contd)
Feasibility

Internal
Consistency

Vision

Strategy

Corporate
Advantage

External
Consistency

Stakeholders
Government

Partners
(Shipping
Companies)

Competitors

Employees

Shareholders

Strategy
Consumers/
Wider Public

SWOT Analysis

Strategy

Strength

Weakness

Strong brand recognition

Trust from customers
Experience against
competitors

Competitors; FedEx, UPS,

etc.
Too diversified
Not specialist robotics
company

Opportunity

Threat

Gain first mover advantages

Increase customer base
Reduce costs

Customer resistance
Lack of legislation
Difficulty of
developing/implementing
AVs

The Cost Benefit Analysis

Strategy

Alternatives
Collaboration with technology
companies and NASA

Collaboration with UPS/FedEx

Wait for other players to enter

Alternatives

Collaboration with technology companies

and NASA

Pros

Collaboration with technology companies like Caterpillar and NASA who have
gained distinctive success in the UAV technology industry to further optimize
Amazons supply chain network.

Gain Industry
expertise
Growth and
Expansion
Increasing Entry
Barriers
High rate of success

Alternatives

Overestimating
benefits from the
technology

Cons

Shared Resources

Huge capital
expenditure
Risk association

Wait for Other Players to Enter

the Market

Pros

chain n
The technology is well ahead of its time and customer acceptance and the risks
associated with it are still unknown.

Lower cost of
accessing the
technology
Less risk association

Loss from previous

R&D
Loss of competitive
edge
May lose market share

Cons

Alternatives

Collaboration with UPS/FedEx

Pros

Collaboration with supply chain management companies like UPS/ FedEx and work
together towards the common goal of supply chain automation. Acquisitions with
companies that have achieved distinctive success in the UAV technology industry to
further optimize amazons supply chain network.

Existing partners
Work in synergy
Common goal
Short term
competitive edge

Increased
dependence
Not aligned with the
corporate strategy
Smaller self-owned
distribution network

Cons

Alternatives

Recommendation
Collaboration with technology
companies and NASA

Collaboration with UPS/FedEx

Wait for other players to enter

Recommendation

Prospective Partners

Experience in
Airspace Automation
Currently Working
with Verizon
Can help Amazon
create products that
fit in

Recommendation

Achieved Success in
building quality AVs
(Trucks)
Land technology
Expertise
Resources

Current Action Plan

Recommendation

Lobby for favorable

Legislation

Ensure Safety of Big

Data

Marketing
Campaigns

Customer Education

Q&A
Irene Torres | Disa Riliana Pakpahan | Shakti Shikhar
Recommendation

MiM IB FI | IE Business School