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(18.00 PM) INA011 –ENGLISH II

Ms. DINI LISNAWATI , S.PD.,MM.
OUTLINE

Part 1 : Amazon.com Profile Company and History

Part 2 : Amazon.com mission, vision and values
Part 3 : Amazon.com Basic strategy ,design, planning
and operation
Part 4 : Analysis SWOT Amazon.com
Part 5 : Other Amazon Initiatives
Part 6 : Marketing Strategies of Amazon
Part 7 : Competitors
Part 8 :Conclusion

AMAZON.COM 2
Amazon.com: a digital shop around the corner…

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… and a digital colossus.

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 Amazon.com in company
profile and history
PART 1 HISTORY
• In 1994, Jeff Bezos incorporated Amazon. In May 1997,
the organization went public. The company began selling
music and videos in 1998, at which time it began
INTRODUCE operations internationally by acquiring online sellers of
books in United Kingdom and Germany. The following
Amazon.com was incorporated in 1994 by Founder year, the organization also sold video games, consumer
and CEO Jeff Bezos.
electronics, home-improvement items, software, games,
• The domain name “amazon.com” was chosen in
and toys in addition to other items.
order
to ensure that the co. name results in alphabetical • In 2002, the corporation started Amazon Web Services
order. (AWS), which provided data on Web site popularity,
• The 2nd reason being ‘ a place that is exotic and Internet traffic patterns and other statistics for
different’ just as the founder had planned for his
marketers and developers. In 2006, the organization
online store.
grew its AWS portfolio when Elastic Compute Cloud
• The first co. to sell goods over internet, started an
online book-store and in 15 years, it expanded from (EC2), which rents computer processing power as well as
one category to 16 main categories which included Simple Storage Service (S3), that rents data storage via
apparels, health, toys, auto-parts, DVDs, home the Internet, were made available. That same year, the
Jeff Bezos furnishing, CDs, videos, electronics, etc company started Fulfillment by Amazon which managed
Founder the inventory of individuals and small companies selling
their belongings through the company internet site. In
amazon.com 2012, Amazon bought Kiva Systems to automate its
inventory-management business, purchasing
Whole Foods Market supermarket chain five years later
in 2017.
AMAZON.COM 5
PART 2
Mission
• ‘To leverage technology and the expertise of our invaluable
employees to provide our customers with the best shopping
experience on the Internet.’
Vision
• ‘To be earth’s most customer centric
company; to build a place where
people can come to find and discover
anything they might want to buy online.’
Values
• Customer Obsession
• Innovation
• Bias for Action
• Ownership
• High Hiring Bar
• Frugality
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Part 3 Insights that shaped amazon

BUILDING TRUST

INCREASING SALES

FASTER PROCESS

PRIME CUSTOMERS

AFFILIATEMARKETING

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 BASIC STRATEGY

LOWER PRICE,
LARGER MORE
SECTION,GREATER CUSTOMERS
CONVENIENCE

CHANNELS, MORE
MORE SELLERS DISTRIBUTION,
LARGER REACH

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 HANDLING COMPLAINTS

Analyze, Understand,
and Interpret
Customer Complaints
Costumer Services

Exhaustively Inform

Interact and Connect

Clear, Concise
Communication

Admit Your Faults and

Apologize
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Marketin
g plan

Pay per-click advertising

Affiliate
Email
Promotion
Online
Events
Media
Marketing
Marketing
Ads
Click icon to add picture

BENEFITS TO EMPLOYEES
• AT AMAZON THE EMPLOYEES ARE OFFERED THE CHANCE
TO WORK WITH GREAT PEOPLE ON EXCITING PROJECTS WITH
AN OPPORTUNITY FOR GROWTH.

• THE AMAZONIANS HAVE A LIFE OUTSIDE OF WORK AND

NEED A BREAK EVERY ONCE IN A WHILE, THAT’S WHY THE
COMPANY PROVIDES A FULL RANGE OF BENEFITS, WHICH
MAY VARY FROM LOCATION TO LOCATION.
Health Saving Relocation
Care Time-Of Plans Assistance

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 TECHNOLOGY

• With hundreds of thousands of people

sharing their credit card details daily with
Amazon, security is a major issue. This is
managed by the Netscape Secure
Commerce server that Amazon employs
store such details.

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TECHNOLOGY PARTNERS

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 Amazon Technology Fact

It has world’s largest Linux Database, with a total

capacity of 7.8 terabytes, 18.5 TB and 24.7 TB
respectively.
• The Central Amazon Data warehouse is made up
of 28 Hewelett Packard server, with four CPUs per
node, running Oracle 9i database software.
• The architecture handles millions of back-end
operations and third party seller queries.
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Click icon to add picture

FIVE INTERNATIONAL STORES OF

AMAZON.COM

AMAZON CANADA, AMAZON FRANCE, AMAZON UK,

AMAZON JAPAN, AMAZON GERMANY.
REASONS:
 THE MOTHER-TONGUE ISSUE
 THE SHIPPING ISSUE
 THE CURRENCY ISSUE
 THE LOCAL PRODUCT ISSUE
 THE NATIONAL PRIDE ISSUE
 PROPER INVENTORY CONTROL

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Click icon to add picture
Part 4
SWOT ANALYSIS
FOR AMAZON.COM IN RETAILING INDUSTRY

OPPORTUNITIES
Acquisitions extend product line
STRENGHTS
and
1. largest online retailer
strengthen technical platform.
2. Robust brand image enhances bargaining

power

3. Diversified into product lines other than THREATS

books to strengthen customer reach
Foreign exchange
fluctuation.

WEAKNESS
Free shipping offers would be a challenge
in the long run.

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Part 5

Other Amazon Initiatives

Companies with Mother brand name

AmazonBasics
Amazon Studios
Amazon-branded
online social movie studio
electronic products

AmazonFresh Amazon Kindle

sells and delivers E- book reader
groceries in Seattle

Amazon prime
Amazon Warehouse Prime membership
Deals program
offers discounts on
refurbished products 18
 Other Amazon Initiatives
Companies with Mother brand name

Amazon Cloud drive Amazon Instant Video Amazon Web Services

Cloud computing Video on Demand Service Collection of web services
giving cloud computing
platform

Amazon Appstore Amazon Cloud Player Amazon mp3

Interactive venue for lets you sync music and Online music store
developers and buyers playlists across computers

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 Marketing Strategies of Amazon
Part 6
Amazon.com bases its marketing strategy on six pillars.
1. It freely proffers products and services.
2. It uses a customer-friendly interface.
3. It scales easily from small to large.
4. It exploits its affiliate’s products and resources.
5. It uses existing communication systems.
6. It utilizes universal behaviours and mentalities.
Much of its marketing is subliminal or indirect – it does not run $1
million dollar ads
during Super Bowls nor post flyers in mall marketplaces (unlike
Groupon).
Amazon.com relies on wily online ploys, strong partner relations and a
constant
declaration of quality to market itself to the masses.

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 Part 7 : Competitors Competitors
Amazon Vs Ebay

Even though the business models of Amazon.com and EBay.com are different EBay is one of the
major competitor for Amazon.

1. Normal retailing model of business 1. Auction model of retailing

2. Faster search and transaction speed 2. More number of sellers and buyers
3. More trusted brand by customers 3. Lesser inventory cost
4. Products are on an average cheaper 4. Better reach and global presence
than any other site (Amazon still doesn’t have a
5. Late in global entry and not fully specialized unit in India where as
utilized global distribution ebay.in is doing well)
6. Best in the industry in customer 5. Good customer service and very
service less error rate
7. Simplicity due to one listing per 6. Multiple listing per product.
product 7. Better margins for sellers
8. More repeat purchase 21
 Competitors
Amazon Vs Walmart
As Wal-Mart has entered into online retailing it poses as a major threat to Amazon.com. The increasing presence of amazon in web space was the
reason which made Wal-mart jump into online retailing at the first place. Amazon is supposed to overtake Wal-Mart in total revenues by 2025

1. Largest online retailer 1. Largest retailer

2. No store presence 2. Online sales of 4 billion in 2010
3. Online sales of 34 billion in 2010 3. Store sales around 400 billion in
4. 40% growth in 2010 2010
5. Better prices than walmart !!! 4. Better brand value due to store
(cheaper presence
by almost 19 %) 5. 17% growth in 2010
6. Diversified portfolio with futuristic 6. Low profit margin
outlook 7. Customer base of 200 million
7. Customer base of 137 million 8. Subsidiaries in 14 countries
8. Subsidiaries in 7 countries 9. Customer service ranking is 10
9. Customer service ranking is 1 10. 14 acquisitions till date
10. 28 acquisitions till date 22
 CONCLUSION

Evolution• Logical path

• Resources & Channels
• B2C, B2B

• New markets
• Strength of Brand
Expansion
• “Earth’s biggest selection”

• Community &
Stickiness
• Trust
Attention • Customer
Economy Experience

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THANK YOU
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