EXMBAQ 2011 N1 GRUPO E
Just a digital shop …
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… or a digital empire ?
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All these companies belong
to Amazon
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Amazon Web Services drives
these companies
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Worldwide sales
Year 2001
$ 3.123 m
EG
M
19
%
CAGR = 32
%
Year 2011
$ 48.077 m
Other
2%
Other
3%
Media
37 %
Media
79 %
EG
M
60
%
Media  Books, music, movies, games,…
EGM  Electronics and general merchandise
Other  Amazon Web Services,…
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Amazon is a giant …
40 % growth in 2011
3x
$ 48.000 m of sales
1,25 x
$ 90.000 m of market capitalization 2 x
152 m of customers
2x
51.300 employees
25 x
$ 189 of sales per unique user
24 x
7th site with the most unique users before
1st retail brand
before
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Mission, vision and values
Mission
We seek to be earth’s most customer-centric company for four primary
customer sets: consumers, sellers, enterprises and content creators.
Vision
We seek to be build a place where people can come to find and discover
anything they might want to buy online and enjoy the best shopping
experience on the internet.
Values
Customer obsession.
Innovation.
Bias for action.
Ownership.
High hiring bar.
Frugality.
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Core value proposition
Amazon’s core
value proposition
is not
disruptive.
Amazon
perfectly
understood the
old economy
retail cocktail.
Low
prices
Large
selection
Convenience
customer
experience
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Amazon’s virtuous cycle and
its strategic imperative
Get big fast
by investing
aggressively in
new product
categories and
new businesses,
by spending
money on brand
awareness and
by getting new
customers.
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A picture is worth a
thousand words …
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Marketing strategy
Objectives
Increase customer traffic.
Create awareness of our
products and services.
Key actions
Pay per click advertising.
E-mail marketing.
Affiliate marketing.
Promote repeat purchases.
Continual web site improvement.
Streamlined ordering process.
Personalization and customization.
Customer’s opinions and cocreation.
Customer service.
Develop incremental product and
service revenue opportunities.
Partnerships and web services.
Strengthen and broaden the
Amazon brand name.
Online advertisement.
Offline advertisement.
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Best practices where Amazon
is best-in-class
Large selection
Low prices
Service quality
Other
retailers
Navigation experience
Users co-creation
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Best practices where Amazon
is best-in-class
$ 73,54
Large selection
In stock. Sold by Car Toys.
Suggested
retailer
Low prices
Service quality
Navigation experience
Price
competition
Users co-creation
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Best practices where Amazon
is best-in-class
Large selection
Low prices
Free
shipping in
two or three
days
Service quality
Navigation experience
Users co-creation
Returns
and
refunds are
easy
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Best practices where Amazon
is best-in-class
Streamlined
ordering process
$ 59,00
In stock. Sold by LiveSpan.
Large selection
Low prices
Service quality
Personalized
recommendation
s
Navigation experience
Users co-creation
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Best practices where Amazon
is best-in-class
Large selection
Customer’s
opinions
Low prices
Service quality
Navigation experience
Helpful ?
Users co-creation
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Best practices where Amazon
is best-in-class
Rate a product
or create
product reviews
Large selection
Low prices
Service quality
Navigation experience
Users co-creation
Comment on
other user’s
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Best practices where Amazon
is best-in-class
Large selection
Low prices
Service quality
Top reviewer
ranking
Navigation experience
Users co-creation
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Best practices where Amazon
is best-in-class
Customer
discussions
Large selection
Low prices
Service quality
Navigation experience
Users co-creation
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Opportunities for improvement
in terms of customer experience
Length and design of the
pages containing the
information about the
products.
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Opportunities for improvement
in terms of customer experience
Purchasing process when shopping in
an Amazon’s website that is not
intended for the country where the
user lives.
Calle María de Molina, 11 - 28006 Madrid - Spain
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Opportunities for improvement
in terms of customer experience
The search options
are too basic.
There are
no advance
search
tools
It is not possible to
search in multiple
departments
Limited sorting
and filtering
options
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Functionality that we would add
Wider interaction and
interrelation with social
networks to create a larger
value added community.
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