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E-commerce Presentation Online Retailer Amazon.com. Group 3 20 April 2005. Business Model. Amazon.com is a online retailers Use a website to merchandise Rely on third party service providers to deliver the goods. Founder. Jeffrey Preston Bezos President Chief executive officer
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E-commerce PresentationOnline RetailerAmazon.com Group 3 20 April 2005
Business Model • Amazon.com is a online retailers • Use a website to merchandise • Rely on third party service providers to deliver the goods
Founder • Jeffrey Preston Bezos • President • Chief executive officer • Chairman of the board of Amazon.com.
Milestone • July 1994: Jeff Bezoes founds Amazon.com • June 1995: Bezoes launches Amazon.com Inc.on Web • July 1997: Amazon.com enters into agreement with Yahoo! • September 1997: Amazon.com become exclusive bookseller on Prodigy shopping network • March 1998: Amazon.com Kids goes online • June 1998: Amazon.com opens music store • September 1998: Amazon.com and Yahoo! Strike Global Merchant Agreement • October 1998: Amazon.com enters European book market
Milestone • February 1999: Amazon.com invests in DrugStore.com • March 1999: Amazon.com invests in Pets.com • March 1999: Amazon.com launches online auction site • April 1999: Amazon.com agrees to purchase LiveBid.com, Internet provider of live auctions
Part 1 Value Proposition Cyberstore • A worldwide shop with the largest number of goods. • Worldwide Book Shop Cyberstore with the world’s largest selection Shoptainment • Continually enhance the customer experience • “Recognize Customer’s Real Need with tailor-made recommendations” • Effectively provide off-line shopping experiences
Part 1 Value Proposition 4 Core Benefits • One-Shop Service • Variety of Product Selection • Convenience • Internet Transition Security
Part 1 Value Proposition Segmentation • Sites in 7 Countries: • USA, Canada, United Kingdom, Germany, Japan, France, China • Over 39 million active customer accounts
Part 1 Value Proposition Competitors • Amazon.com first entered the market • Major competitor: • Barnes and Noble • Competitor: • Borders Books and Music
Part 2 Marketspace Offering Critical Change • Amazon.com is no longer just an online bookstore. • We’re committed to the communities we serves. We live here, too. And we believe good, works. (by Wal-mart) • Products beyond books to make Amazon.com an online Wal-Mart
Supplier Partnership • Books………………………. • Apparel & Accessories.. • Electronics………………... • Toys & Games………….. • Kitchen & Housewares. • Tools and Hardware….. • Others:
Part 3Resource System HMV CDNOW IntegratedPartner Offers Strong DistributionNetwork Toys”r”us One ShopService VarietyProductSelection Employee Commitment Wide Reachto Customers EasyAccess(Convenience) Security Catalog Bertelsmann Visa Online Yahoo! Multiple Contact Pts Technology Hyperlink SearchEngine E-mail 39 MillionAffiliates Popular Website Strong Brand Name 1-ClickThrough Oracle
Part 4 Financial Model • Revenue Mix • Cost Mix • Profitability Trend
Intro. Value Offering Resource Finance Six mainCategories Founder RevenueMix Milestone Cost Mix SupplierPartnership Four CoreBenefits ProfitTrend Shopetainment Capabilities Cyberstore Resources& Activities Conclusion