Alan Baiisl

Biandon Hovsepian
Cliisiian } Galvin
Geoige Tialalis
Sida Tun
MKT 81q SLruLegIc MurkeLIng
ProIessor BurreLLI
uII zo11
lai is Maicom?
Amazon Iniio
ST
Piicing
Kindle Fiie
Disiiibuiion
Amazon's Maicom
CommunlcaLlon Mlx
O Adveiiising
TV, iadio, newspapei
O Sales Piomoiion
Coupons, deals and volume deals
O Public Relaiions
Piess coveiage
O Peisonal Selling
ne-on-one meeiings, pieseniaiions
O Diieci Maileiing
Diieci mail, ielemaileiing, email
nLegraLed MarkeLlng
CommunlcaLlons
Advcvtising
Intcv-
Customcv
Sa!cs
Pvomotion
Pcvsona!
Sc!!ing
Pub!ic
Rc!ations
Divcct
Consumer AdopLlon Model
Adopiion
Tiial
Evaluaiion
Inieiesi
Awaieness
Advcvtising Divcct Pvomotion Pcvsona!
Sc!!ing
Pub!ic
Rc!ation
Intcv-
Customcv
Awavcncss
Intcvcst
Dccision]Tvia!
Adoption
Siiong Siiong Siiong
Siiong Siiong Siiong
Siiong Veiy siiong Veiy Siiong Siiong
Siiong Siiong
9ush vs 9ull SLraLegy
Pioducei Inieimediaiies Consumeis
Maileiing
Aciiviiies
Demand Demand
Pioducei Inieimediaiies Consumeis
Maileiing
Aciiviiies
Maileiing
Aciiviiies
Demand
Pusl
Pull
Amazon SLory
O Founded in i by }eff Bezos
O eni public in i
O i. million cusiomeis afiei : yeais
O :ooi- i
si
yeai of iepoiiing nei piofii
O million cusiomeis (:oo)
O Reacled sb afiei yeais
O s:. billion ievenues (:oio)
As a resulL
Amazon's Mlsslon SLaLemenL
e seel io be Eaiil's mosi cusiomei-ceniiic company
foi iliee piimaiy cusiomei seis: consumei cusiomeis,
sellei cusiomeisand developei cusiomeis"
evenue per vlslLor
STRENGTHS
- PvoIitab!c
- Gvcat Customcv Rc!ationship Managcmcnt
systcms (CRM]Bund!ing)
- Lavgc Bvand Equity (G!oba! and onc oI thc
Ovigina! dot coms)
- Expanding pvoduct catcgovics
WEAKNESSES
- Too much pvoduct catcgovics cou!d visk
bvand imagc.
- Low PvoIit Mavgins
- Dcpcnds high!y on outsouvcc dc!ivcvy
Iivms
- Stvong vc!iancc on pavticu!av supp!icvs
- Fvcc Shipping stvatcgy mcans highcv costs
OPPORTUNITIES
- }oini Veniuies]Paiineislips
- Buy uis (Zappos)
- Eleciionic Bools]Pads (Kindle Fiie)
- Movie and Music downloading
THREATS
- Piice Compeiiiion
- Imiiaiois oi Subsiiiuies
- New Eniianis
- Exieinal faciois io deliveiy cosis (iising fuel
piices)
- Inabiliiy io manage deliveiy iimes
SWC1 Analysls
9rlclng SLraLegy
O Huge economies of scale
O Low piofii maigins
O Looling foi fuiuie piofiis fiom cloud compuiing
9rlclng
ow Amazon 9rlclng Works
O : ieiaileis wiil ile same bool
O Piofnail and Boideebool
O Tbe Mokinq of o Fly"
AlgorlLhmlc 9rlclng
O Auiomaiic piicing
O Piofnail o. iimes ile piice of boideebool
O Boideebooli.: iimes ile piice of piofnail
1he llre
9roblems WlLh 9asL eeaders
O Too leavy
O Glaie
O Piice
O Unaffoidable
O Noi enougl uses io jusiify piice
O Baiieiy life
O Complicaied io gei bools
eeader Comparlson
Kind!c
Fivc
Nook
Touch
Rcadcv
Sony
Rcadcv
BcBook
Nco
Kobo
Wivc!css
cRcadcv
Pandigit
a! Novc!
Inieinal
Memoiy
GB :GB :GB i:MB iGB iGB
Baiieiy
Life
Houis Houis Houis Houis Houis Houis
eigli(o
z)
. . . io. i:.i i
Piice si si s s: si si
eReadei
Ranl

1he Apple klller?
Kind!c Fivc App!c iPad i Winncv
Piice si s-s: Kindle
Apps Available i, o,ooo iPad
Scieen Size incles . incles ???
eigli i. unces i. lbs Kindle
Capaciiy GB i-GB iPad
Cameia No Yes iPad
Baiieiy Life louis . louis Kindle
Too close io iell, maybe noi an Apple lillei bui definiiely a Baines and Noble
Killei
9rlclng
O Loss leadei]Peneiiaiion
O Moie inieiesied in ile fuiuie iecuiiing ievenue
O Receni Amazon eainings guided down nexi quaiieis
eainings
O Taling a loss on Tle Fiie
O ill use iis clannels (Besi Buy, Radio Slacl) io sell iis
pioducis
O Media Sales ioialed s.i Billion
9rlclng
O Esseniially ieduced ileii
maigins io o
O Goal is io gei as many
Kindles in ile lands of
consumeis as iley can
O ill pui piessuie on
compeiiiois
Piice
Amazon 8ooksLore
O Tley sell ii eBools foi eveiy ioo papeibacl bools
O Kindle bool sales aie iiiple ilai of laidcovei sales
O eBool sioie in :oii is expecied io geneiaie s.: billion
in ievenue
O s. billion in :oi:
O Toial of ,ooo eBools wiil an aveiage of ,ooo new
bools added eveiy monil
O By :oi: Amazon could own lalf of ile U.S. bool
business acioss all foimais"
lsLrlbuLlon CenLers
O Beiween :ooi and :oo Amazon invesied soo million
in disiiibuiion cenieis.
O Unpiecedenied ai ile iime.
O as ciiiicized foi sucl a laige invesimeni
O Cuiienily ileie aie disiiibuiion cenieis aiound ile
woild.
O i moie cenieis opening ilis yeai.
O Siiaiegic clannel consideiaiion: Cusiomei Needs
lulflllmenL CenLers
O In eaily i siaiied io open fulfillmeni cenieis
O Siiaiegic clannel consideiaiion: Biand Posiiioning
O Cieaied io lelp small businesses ilai use Amazon io ieacl
cusiomeis
O Coupled wiil Amazon Piime, useis lad no need io go io
oilei ieiaileis.
9rlme SubscrlpLlon
O Fiee :-day slipping foi s pei yeai foi ilis seivice will
discouiage useis fiom slopping ai oilei e-ieiaileis.
O Amazon Piime las ovei million subsciibeis.
O In ioial, Piime membeis spend iouglly s. billion
annually.
O peiceni of Piime membeis siaii ileii slopping
expeiience on Amazon, iailei ilan any oilei poiial, lile
Google.
Sales 1ax 8aLLle
O Disiiibuiion cenieis aie opened and closed ai will
O Closed FC in Iiving Texas because ile siaie wanied io
foice ilem io pay sales iaxes.
O Califoinia migli pusl ile paymenis of sales iax oui io
:oi so Amazon would open iwo FC in ile siaie
(cieaiing ooo jobs)
CompeLlLlon
O SlopRunnei.com a new coaliiion of ieiaileis iiying io maicl
Amazon's disiiibuiion advaniage.
O vei o companies:
O Ai one poini included Boideis
O Amazon could siill lave a susiained advaniage because of ile
amouni of disiiibuiion 8 fulfillmeni cenieis
Amazon's Marcom
O Adveiiising
O nline: Pay Pei Clicl, Associaie Piogiam aSioie",
Peimission Email Adveiiising, Sponsoied Seaicl, Poiial Ad
O ffline: uidooi and TV Ads
cav Spcnding
i so million
:ooo so million
:oo s million
:oo s. million
Amazon's Marcom
O Piomoiions
O Piime Membeislip
O Today's Deal
O Sweepsiales
O Iniei-Cusiomei
O oid of mouil
O Tesiimonials
O Raiing on selleis
Ouesiions?