Presentation on Amazon.

com
Presented by
Rahul Siwach 141 (Section A)

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INTRODUCTION OF AMAZON.COM
• Amazon.com, Inc. ("Amazon.com" or the
"Company"), the Internet's number one book,
music and video retailer, opened its virtual doors on
the Web in July 1995. Amazon.com, one of the
most widely known, used and cited commerce sites
on the Web, offers more than 4.7 million book,
music CD, video, DVD, computer game and other
titles. The Company offers its customers a superior
shopping experience by providing value and a high
level of customer service.
• Amazon.com was incorporated in 1994 in the state
of Washington and reincorporated in 1996 in
Delaware. The Company's principal corporate
offices are located in Seattle, Washington.
Amazon.com completed its initial public offering in
May 1997 and its common stock is listed on the
Nasdaq National Market under the symbol "AMZN."

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Background and literature review of
amazon.com
Name Amazon.com, Inc.
Logo
Industries served Internet, Online retailing
Geographic areas Worldwide
served
Headquarters U.S.
Current CEO Jeff Bezos
Revenue $ 280.05 billion
Profit $ -39 million
Employees 798,400
Main eBay Inc., Netflix, Apple Inc., Barnes & Noble,
Competitors Inc., Wal-Mart.com USA, LLC.

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Background and literature review of amazon.com
• The Early 1990s: Beginnings
• Throughout the 1990s, the popularity of the Internet and World Wide Web swept
across the world, and personal computers in most businesses and households got
hooked up in some form or another to Internet providers and Web browser
software.
• In 1994, Bezos left his job as vice-president of the Wall Street firm D.E. Shaw,
moved to Seattle, and began to work out a business plan for what would become 
Amazon.com.
• Bezos eventually decided that his venture would sell books over the Web, due to
the large worldwide market for literature, the low price that could be offered for
books, and the tremendous selection of titles that were available in print.
• The web site debuted in July 1995 and quickly became the number one book-
related site on the Web.
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• Going Public in 1997
• After less than two years of operation, 
Amazon.com became a public company in May
1997 with an initial public offering (IPO) of three
million shares of common stock. With the
proceeds from the IPO, Bezos went to work on
improving the already productive web site and on
bettering the company’s distribution capabilities.
• Another growth area for Amazon.com was the
success of its “Associate’ program. Established in
July 1996, the program allowed individuals with
their own web sites to choose books of interest
and place ads for them on their own sites,
allowing visitors to purchase those books.

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2001-2002
•  During 2001, the company focused on cutting costs. It laid off 1,300
employees and closed a distribution facility. The company also added
price reduction to its business strategy. Amazon.com reports its first
net profit during the fourth quarter.
• In 2002, the company launched its apparel store, which included
clothing from retailers.

Auctions
• In 1999 Amazon.com announced that it was introducing Amazon.com
Auctions36. This was a bold move on the part of Amazon to
overthrow the large Internet auction house eBay.
• Amazon wanted to leverage its large customer base and encourage
them to become buyers or sellers on its auction service.
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 14 LEADERSHIP PRINCIPLES OF AMAZON.COM

Hire and
Customer Invent and Learn and Be
Ownership Develop the
Obsession Simplify Curious
Best

Insist on the
Are Right, A Lot Highest Think Big Bias for Action Frugality
Standards

Have Backbone;
Earn Trust Dive Deep Disagree and Deliver Results
Commit
Economies of Scale
• According to Bezos from a
technology standpoint, the
company had already incurred
the fixed costs of developing
software for the online
storefronts. Expanding into other
product categories would allow
the company to spread these
fixed costs across a larger pool of
transactions leading to greater
profits.
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Amazon.com as Technology Provider
• A key partnership was
announced with Target on
September, 2001. Target agreed
to use Amazon.com technology
for order fulfillment and
customer care services on its
Target.com, MarshallFields.com,
Mervyns.com and
GiftCatalog.com web sites.

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International Growth
• According to amazon.com
without opening web sites and
distribution centers abroad,
Amazon.com had consistently
served a global audience. In July
1995, the customers of the
company came from 45 different
countries39. Currently, the
company sells to over 150
countries40.

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 BUSINESS MODEL
The mechanism perpetuating growth is
called the ‘Amazon Flywheel‘.
1.If customers have a great (and
consistent) shopping experience on the
platform, they will reliably return to it,
and even suggest it to their friends. This
creates Traffic.
2.Sellers will certainly follow traffic –
they need to put their products in front of
the eyes of consumers.
3.More sellers -> more product selection.
4.More product selection, means a
better Customer Experience
With these four elements feeding the
growth of the platform, you now
have Economies Of Scale. Meaning
lower cost structure, leading to lower
prices, which again ultimately will feed
the growth cycle by offering customers
the best Customer Experience.
Amazon’s success is built on serving the
customer and the customer only.
Main objective
• The Company's objective is to
become the best place to buy,
find and discover any product or
service available online.
Amazon.com will continue to
enhance and broaden its brand,
customer base and electronic
commerce expertise with the
goal of creating customers'
preferred online shopping
destination, in the United States
and around the world.

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POLITICAL analysis

Political situation in a country has its effect on number of things. Some

decisions can have effect on business practices too, like recently Google
has been banned in China due to some data in its data bank which
according to Chinese authorities was not suitable for China’s interests. 
Amazon has no immediate problems in operating in china and luckily
recent lifting up of restrictions on e-commerce has given chances of
more business to Amazon.
ECONOMIC FACTORS
• Economy in US and Europe has saturated and buying power has gone
down but buying power of people in China and India and many
eastern countries has gone up and so is the use of internet in these
areas. This promises an increase in business for Amazon in these
areas.
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TECHNOLOGICAL analysis
• Ever increasing speeds and better connectivity provides huge options
for Amazon to increase its business. With such speeds Amazon can
offer its users many online features such as online video and music
download for far less price as compared to actual possession of these
products.

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Internal analysis
• Amazon theoretically has even more customer profile data and would
be able to execute a similar segment strategy to actively drive
demand. 
• They have a product recommendation engine based on past purchase
and browse behavior, but that doesn't get to identifying a deeper
customer need state or life event changes.
Market segmentation
•  focuses on behavioral aspects such as brand loyalty, price
consciousness, value consciousness and readiness to buy.
• Other geographical aspects include nationality, gender, age, religion,
education, income, family size 
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SWOT Analysis

Strengths Weaknesses

1.Cost leadership strategy 1.Only online presence

2.Superior quality services and products 2.Selling at zero margins
3.Strategic acquisitions 3.Negative publicity
4.Efficient distribution chain and logistics
5.Economies of scope

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SWOT Analysis

Opportunities Threats
1.Online payment system 1.Online security
2.Release more its own brand products and services 2.Lawsuits
3.Increase services and product portfolio through 3.Strategic alliances
acquisitions 4.Legislation against tax avoidance
4.Open more online stores in other countries 5.Regional low cost online retailers
5.Physical presence

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 FUTURE PROSPECTS OF AMAZON.COM

Autonomous Vehicles  Mightier global e-commerce empire Disrupting the Pharmacy market 

Fully autonomous vehicles is fast E-commerce's current approximately 10% share of U.S. retail sales By 2024, Amazon should be well on its way
approaching receiving the federal green will continue to increase, with a similar dynamic occurring in to disrupting the approximately $400
light. Amazon can be an early adopter of international markets. Amazon will continue to be the prime (pun billion U.S. pharmacy market. Last year, the
driverless vehicles for at least some portions intended) beneficiary of the growing size of the sector pie. Not only company bought online pharmacy PillPack,
of its delivery operations. It might also be do many people love the convenience of shopping online, but they giving it the ability to speedily deliver
specifically love Amazon, thanks largely to its massive selection
using drones for some deliveries from its prescription drugs across the country..
and loyalty program, Prime.
fulfillment centers to customers.

Cashier-free stores AWS will be much bigger Biometric Payments

Amazon Web Services (AWS) is the dominant player in the
In January 2018, Amazon opened its first fast-growing cloud computing service market. In 2018, it had New form of contactless payment, the system
cashier-less convenience store, called Amazon a 32% market share of this $80 billion global market, which will take a scan of each customer’s palm, which
Go, in its birthplace of Seattle. The stores could grew 46% year over year. will then be linked to their credit or debit card.
completely revolutionise shopping as we know The cloud service space is widely expected to continue to Because of the intricacy of the vein patterns that
it, as the “Just Walk Out” stores mean that you grow rapidly, and there's every reason to believe that AWS will be catalogued, biometric payment is highly
don't need to queue for a cashier; instead you will still be the market leader in 2024. If this proves the case, resistant to forgery, in theory making it a much
just pick up your purchases and leave. safer method than cards or cash.
Amazon's operating income should continue its upward
climb.
 FUTURE PROSPECTS OF AMAZON.COM

Innovative healthcare Alexa AI-powered home robots

Amazon Care launched in September 2019 Despite its name, Alexa still lacks the human touch, which is Named Vesta, the home robot will help
as a pilot for Seattle-based Amazon Amazon’s next goal. The company wants to make interactions around the house with cleaning and other
employees and their families. So far it has more natural. Alexa Care Hub is also on the agenda, which would chores, making everyday home life just that
proven successful enough that Amazon is allow an elderly person’s device to be paired with a family little bit easier. Vesta is expected to boast
starting to scale up the service to cater for member’s, so people can keep in touch easily with vulnerable the latest cameras, sensors and other
more workers. The service provides virtual relatives. This would provide useful data in terms of making Alexa
futuristic technologies, do everything from
a companion that could one day help to tackle health problems in
and real-life healthcare assistance including simple household chores to complex
its users.
in-app visits to a doctor, in-person check-ups problem-solving, as well as providing
and prescriptions delivered quickly. companionship

Food delivery service Game streaming services Fleets of delivery drones

Another industry the tech giant is keen to make waves in is
Given Amazon’s reputation for speedy delivery gaming. Amazon has just launched Luna, a cloud gaming Amazon isn’t just taking over the roads
and its growing ventures in groceries, it’s service that allows users to play on streaming devices without when it comes to delivering our packages.
perhaps unsurprising that a takeaway food having to download or install games beforehand. Luna will Amazon is now well on the way to rolling
delivery service called Amazon Food is now out the drone service, which will deliver
work on any Bluetooth controller, but Amazon has also
being trialled in India. packages weighing up to five pounds within
released its own Luna version (pictured), which will connect
directly to the cloud service. The games players can access just 30 minutes using miniature drones.
depends on which channels they subscribe to
Thank You!