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Introduction

Introduction. Needs no introduction. A Fortune 500 Company The biggest online retailer in the world. Customer base > 66 million. Incorporated in Washington in 1994; Re-incorporated in Delaware in 1996; Headquarters in Seattle, Washington. Series of Mergers & Acquisition: 13 till date.

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Introduction

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  1. Introduction • Needs no introduction. • A Fortune 500 Company • The biggest online retailer in the world. Customer base > 66 million. • Incorporated in Washington in 1994; Re-incorporated in Delaware in 1996;Headquarters in Seattle, Washington. • Series of Mergers & Acquisition: 13 till date. • 13,900 full time employees

  2. The Business Model • Amazon.com operates retail websites and offers programs that enable third parties to sell products on their website. • Bifurcation by region • North America • International • Bifurcation by products/services • Amazon.com Retail • Self Fulfillment • Market Place Services • Merchant Services • Amazon Web Services • A9 Product Search • Alexa Internet

  3. Strategy - Objective Everyday Low Pricing: Our objective is not to discount a small number of products for a limited period of time, but to offer low prices everyday and apply them broadly across our entire product range. Earth’s Biggest Selection: Build a place where people can find and discover anything they want to buy online and endeavor to offer customers the lowest possible prices Earth’s Most Customer-Centric Company Start with the customer and work backwards

  4. Strategy • The Virtuous cycle for Growth

  5. Porter’s Five Forces • Threat of new entrants: (+/~) • Low-Medium • Easy to enter • Tough to win goodwill • Industry • High Rivalry • Price Competition • Efficiencies of Scale • Reputation Imp • Buyers Power: (-) • High • No Loyalty • Price only criteria • Suppliers Power: (+) • Low • Buys in bulk • Multiple Vendors • Availability of substitutes: (-) • Many • Too many competitors offering similar products

  6. Financial Comparision

  7. Major Issues and Competitive Forces • Lots of competition • Primary competitors: • eBay.com (eBay Inc) • Bn.com (Barnes and Nobles) • Buy.com • No Loyalty in the industry • Price is the biggest discriminatory factor

  8. IT Expenditure

  9. Growth of online shopping Source: 2002 World population Data Sheet Amazon’s growth of Revenue : 61% CAGR since 1997

  10. Operating parameters for similar companies

  11. Officers and Directors • Jeffrey P. Bezos - CEO, Chairman, President • Andrew Jassy - Vice President • Jeffrey Blackburn - Vice President • Steven Kessel - Vice President • Marc Onetto - Vice President • Diego Piacentini - Vice President • Rick Dalzell - CIO

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