INTRODUCTION
oWhat is amazon?
oLogotype
oProducts.
INTRODUCTION
o Jeff Bezos founded
Amazon in 1994
o It started as an online
bookstore.
o Headquarter In on
Seattle's, Beacon Hill,
Wasington.
COUNTRY ANALYSIS
POLITICS
o Government can take the form of various
online transactions such as company
registration, taxation, applications for a
variety of employee- and business-related
requirements, and the like.
ECONOMY
o Economic efficiency resulting from the
reduction in communications costs, lowcost technological infrastructure, speedier
and more economic electronic transactions
with suppliers, lower global information
sharing
COUNTRY ANALYSIS
SOCIAL
o Social side, can improve in life style,
quality of life and using internet
make everything faster.
TECHNOLOGY
o Technology forces. The development
of ICT is a key factor in the growth of
ecommerce.
WHEN, WHY AND HOW
WHEN
o Launch In 1995.
o Amazon have built a substantial lead over their
rivals by their early entry into the e-commerce
marketplace.
WHY
o
o
o
o
o
Cost Benefit.
Efficiency.
World Free marketplace.
Focus.
Value added.
WHEN, WHY AND HOW
HOW
o Promotion
o Amazon.com uses a variety of online and traditional
advertising, including sponsored links, e-mail, print
media, direct marketing, television, and other
offline advertising campaigns to reach customers.
o Strong market penetration
o They were one of the first, if not the first, fullservice online book ordering dot-com business.
Because of innovativeness and early entrance, they
have a strategic advantage
WHEN, WHY AND HOW
HOW
o Strategic alliances and joint ventures
o Amazon.com entered into co-branding agreements
with major chains such as Target, Circuit City, and
Toys ‘R Us, the first such contractor
o Win-win solution
SWOT ANALYSIS
STRENGTH
o Everybody can find virtually any item with
lower prices.
o produced wireless reading device called
‘AmazonKindle’
o Shipping free and time delivery service
o International Worldwide recognized
o Collects information on each customer’s likes
and dislikes through email and forum
SWOT ANALYSIS
WEEAKNESSES
o Daily check and a constant maintenance of its
server to ensure the functioning of its systems.
o Amazon.com has sold daily goods such as
cleaning cloths. Most of customers do not
purchase by online, and they get in offline
retail stores because it is faster and to get
SWOT ANALYSIS
THREATS
o Difficult to compete with other online stores
such as eBay because similar product.
o Worldwide of Amazon.com is not strong
enough to compete. Because international
Amazon website is same as Amazon.com, and
it is not each country’s favor
COMPETITORS
eBay, Inc.
o Formed in September 1995, incorporated in
California since May 1996
o A Sole Proprietorship and
o eBay providing the Internet platforms of
choice for global commerce, payments and
communications
o eBay has expanded with the strongest brands
in the world including PayPal, Skype,
Shopping.com, and so on.
COMPETITORS
Barnes & Nobles, Inc.
o Barnes & Noble's beginnings in 1873 at New
York City.
o Developed a worldwide reputation and
comprehensive selection of general trade
books, academic titles and textbooks, and
medical books.
o The company launched its own Internet site in
1997 and now has one million books for online
sales.
o Barnes & Noble is the world's largest
bookseller and also leading book publisher.
COMPETITORS
Nirvanix, Inc.
o Headquartered in San Diego, CA and backed
by world-class investors including Intel Capital.
o S3 storage web service.
o Built a global cluster of storage nodes that
referred to the Storage Delivery Network
(SDN), powered by the Nirvanix Internet
Media File System (IMFS).
o The SDN intelligently stores, delivers and
processes storage requests in the best
network location.
COMPETITIVE FORCE PORTER’s MODEL
The Entry Of competitor
o That offer the same product
o If Amazon has built a sustainable competitive
advantages, the threat from new entrants will not much
affect it due to the lack of strategic approach.
The Entry Of Substitutes
o Customers may like to travel and shop either to relax,
meet people or choose things by touching the
merchandise.
o Amazon has to be wary of these needs, and while
innovating, Amazon has to integrate these aspects into
their offerings.
COMPETITIVE FORCE PORTER’s MODEL
Bargaining Power of Buyer
o Interested only in delivery at the best prices
when has set about giving its best for a
memorable ‘customer experience’.
The Entry Of Supplier
o Start similar ventures. Toys’R’Us.
o many of the firms currently supplying the
merchandize may start their own online
retailing
COMPETITIVE FORCE PORTER’s MODEL
Rivalry among players
o Especially from the existing firms like
barnes and noble may intensify their
competition.
o Because they already selling online
successfully.
o Barnes and noble can invest resources
much larger than what amazon can and
one of the main enemy in the business.
ANALYSIS OF MARKETING MIX STRATEGY
Product Strategy
o Consumers can easily collect information
about products or services without
traveling to stores to inspect products
Price Strategy
o The Internet enables consumers to
compare prices, products, and services
across suppliers
ANALYSIS OF MARKETING MIX STRATEGY
Promotion
o One of the reasons why Amazon
companies do not realize profits is that
they spend a great deal of money
Place
o Refers to the supply chain (or value chain)
for mass marketing to promote their ebrands to consumers
B2B AND B2C IN AMAZON
Business To Business
Types of Amazon B2B applications include :
o Electronic data interchange.
o Electronic funds transfer.
o Electronic forms.
o Integrated messaging.
o Shared databases
B2B AND B2C IN AMAZON
Business To Business
o Amazon using B2B website, e-mail, online
product catalogs, online trading networks and
other online resources to reach new business
customers, serve current customers more
effectively, and obtain buying efficiencies and
better prices
o Amazon offer product information, customer
purchasing and customer support Amazon
services online
o Amazon use the Internet to build stronger
relationships with important business
customers
B2B AND B2C IN AMAZON
Business To Consumers
1. Amazon through the B2C online marketing selling
of goods and services online to final consumers.
And online consumer buying continues to grow at
the healthy rate.
2. Amazon B2C involves customers gathering
information; purchasing physical goods (such as
books) or information goods(such as software);
and for information goods receiving products over
an electronic network.
3. Amazon B2C e-commerce reduces transactions
costs by increasing consumer access to
information and allowing consumers to find the
most competitive price for a product or service.
HRM IN AMAZON
Employee
o Amazon employed approximately 13,900 fulltime and part-time employees at December
31, 2006.
o In Amazon the competition for qualified
personnel in industry is intense, particularly
for software engineers, computer scientists,
and other technical staff. Amazon HR believe
that future success will depend in part on
continued ability to attract, hire, and retain
qualified personnel
HRM IN AMAZON
HR Strategy
o Amazon employment levels fluctuate due
to seasonal factors affecting our business.
Additionally, we utilize independent
contractors and temporary personnel to
supplement our workforce, particularly on
a seasonal basis. None of our employees is
represented by a labor union and we
consider our employee relations to be
good.
FINANCIAL PERFORMANCE
FIRST QUARTER
o For the first quarter ended March 31,
Amazon made a profit of $177 million,
or 41 cents a share, up from $143
million, or 34 cents a share, a year ago.
Sales rose 18 percent to $4.89 billion.
o Those results easily beat analysts'
prediction of a per-share profit of 31
cents and sales of $4.75 billion.
FINANCIAL PERFORMANCE
SALES AND INCOME
LAST 12
MONTHS
5YEARS
GROWTH
SALES
24.5
BILLION
28.8%
INCOME
902.0MILLIO 8.9%
N
DIVIDEND
RATE
0.00
NA
DIVIDEND
YIELD
0.00%
0.00%
FINANCIAL PERFORMANCE
BANDWIDHTH
o Benefit in year2008 from high gas prices as
consumers shopped online rather than drive
to brick-and-mortar stores.with more
consumers comfortable shopping online,
Amazon wins by selling a large variety of
products up and down the price spectrum.
FINANCIAL PERFORMANCE
MARKET SHARE
o Amazon is increasing their market share.
Amazon is taking sales away from Internet
auction site eBay and large chains with ecommerce components. “They‘re growing
their customer base, and their customer base
appears to be loyal.
o Benefited in year2008 from high gas prices as
consumers shopped online rather than drive
to brick-and-mortar stores.with more
consumers comfortable shopping online,
Amazon wins by selling a large variety of
products up and down the price spectrum
FINANCIAL PERFORMANCE
BANDWIDHTH
CONCLUSION
o The goal when launching an Amazon company
is to try not to differentiate on price since
information on the Internet flows freely,
making the consumer highly educated about
costs of products and services compared to
competitors.
o Amazon have strategic alliances and joint
venture, marketing mix, differentiation
product, B2B and B2C system, eBay is biggest
competitor.