EXECUTIVE

SUMMARY

VALUE PROPOSITION BEING THE MOST CUSTOMER

CENTRIC COMPANY LOW PRICES, DIVERSITY AND
INNOVATION

WHAT IS THE STATE OF INDUSTRY AND

WHERE ARE OUR GROWTH OPPORTUNITIES?
STRENGHTS/OPPORTU
NITIES

Leverage on the
strong IT capabilities
and higher investment
capabilities
Build on the existing
brand image for
further expansion of
scope

WEAKNESS/OPPORT.
Work towards
achieving greater
economy of scale to
counter the
consequences of low
profit margins.

STRENGHT/THREATS
Expanding focus to
counter the risk of
competitors also
following on the cost
leadership strategy
Take steps in improving
brand awareness about
the Amazon Web
services and its
applications
WEAKNESS/THREATS
Evaluate more on
partnering to provide
similar experiences of a
physical store and be at
par with the
competitors

WHAT IS THE IMPACT OF CHANGING INDUSTRY LANDSCAPE?

Political
International
policies &
regulations
- Trade
protection
- Faster and
Legal
more
- International
affordable
laws
internet&
(country
products)
Tax issues
Property
rights
- Liabilities &
management
-

Economic
- Currency
fluctuation
- Purchasing
power due to
crisis
- Increasing
sales in
emerging
market

PESTEL
Analysis
Environme
nt
- Pressure to
reduce
unnecessary
packages
- Optimized
delivery

Social
- Restriction
based on
religious&et
hic
- Purchasin
g
preferenc
es
-Technological
Social
- Increasing
network
internet
access
booming
- Virtualizations
- Diversity of
devices
- Development
of cloud
computing

HOW DO WE FIT THE SCENE?

V
R
I
N

Use and upgrading of technologies

Brand , low prices, choice, innovation etc. The unique
patented software
Complexity internal linkages: complex and effective supply chain
Culture, history and recruitment process: customer focus, path
dependency
Casual ambiguity Heavy investment in Research & Development, Customer
experience
Change to innovate and keep ahead of competitors: use of dynamic
capabilities

Amazons customer centric and fast moving culture

Increasin
g bases of
sustainabl
e
competiti
ve
advantag
e

 Are the competitors changing their strategy? Competitive map

High Price
Shopify

High
Technology

Low Technology

Amazon.co
m

WalMart
eBay

Revenue : 68 M$
Growth : 31%
Gross margin : 1,8
M$

Low Price

 Are the competitors changing their strategy? Competitive map

High Level of
Execution

Amazon
Web
Services
Microsoft

Low Innovation

Revenue : 3.8 M$

Virustream

IBM

Fujits
u

High
Innovation
Google

HP

Growth : 40%
Gross margin :
80%
New competitive
positioning, with
high-margin
activities

Low Level of
Execution

HOW DO WE PUSH THE

GROWTH?
Globally over the past five years, online retail has grown at a 17
percent CAGR, with growth particularly strong in Latin America (27
percent) and Asia Pacific (25 percent).
The worldwide cloud computing market will grow at a 36%
compound annual growth rate (CAGR) through 2016, reaching
a market size of $19.5B by 2016.
Amazons computing services has been the business unit with the
biggest YoY growth, 55,9% in 2013, whereas the International
division has increased 22% and North American Division
increased 58%.

HOW DO WE PUSH THE

GROWTH?

What do we recommend?

Improve
Avoid practices which
can jeopardize its
brand

Improve its
performance:
environment,
diversity

Questions?