Description
Detailed analysis of biggest e-commerce company in the world.
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Company Overview
Founded in 1994 in Seattle, USA Founder- Jeff Bezos Beginning as Online Book Store
69,100 Employees
Revenue 2011- $ 48.07 bn
Worldwide network of fulfilment Worldwide presence, dominant in North America
Global leader in ecommerce
Presence in 20 product categories
Mission
• ‘To leverage technology and the expertise of our invaluable employees to provide our customers with the best shopping experience on the Internet’
Vision
• ‘To be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online’
Values
• Customer Obsession • Innovation • Ownership • High Hiring Bar
Objective
• ‘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’
Core Value Proposition
• Price • Convenience • Selection
Strategy
• ‘To ‘Get Big Fast’ by investing aggressively in new product categories and new businesses, by spending money on brand awareness and getting new customers’
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Retail Goods
Retail Goods Consumer Electronics
Retail Goods Consumer Electronics Computing Services
Simple Queue Service
Simple Storage Service
Elastic Compute Cloud
eBooks/Kindle
Amazon reported 80% of eBook market >450 000 books available for download
eBooks downloaded from Amazon not exclusive to Kindle
Newspapers, magazines and blogs subscription
"Our vision is to have every book ever printed, in any language, all available in tinder 60 seconds” - Jeff Bezos, Amazon.com CEO
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Internal Strengths and Weaknesses
STRENGTHS
-
WEAKNESSES
Lack of Spanish website version (Latino and Hispanic Americans are the fastest-growing online ethnic group) Risk of introduction of wrong new categories which could damage company’s brand Certain products (high volume/weight) have high shipping costs which could confront with local offline retailers
-
Strong brand name Pricing policy with discounts Customer service support Effective automated distribution centers in the US and overseas Developed and upgraded technology: software and hardware Pioneer in the syndicate selling on the Web Two segments: B2C and B2B ecommerce
-
External Opportunities and Threats
OPPORTUNITIES
Construction of an extensive community of buyers Growth of internet users in the next five years, predominantly in the international market E-commerce expansion in Asia and the Pacific Several product categories with high penetration of retail on-line sales
THREATS
-
-
-
eBay, Barnes & Nobles, and WalMart Possible rejection to on-line sale in international markets if new taxes (Value Added taxes: VAT) in products are levied Competition will increase due to the low barriers to entry in the market: offline companies are coming online
Business Model
Explained using Homman’s Model
Founder’s Vision Strategy Structure
MIS
Climate
People Result
Management Style
Current Condition
Founder’s Vision
Strategy
Structure
‘To be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.’ Started with books in 1995 and now selling in around 16 categories including books, music, movies, consumer electronics, web services, and more.
MIS
People
Management Style
Who want to buy products Jeff Bezos, founder and innovator of Amazon.com realizes that it is not merely on Amazon technology that has made his company build a world-wide customer base of Consumers over 17 million. 69,100 Employees Acquired 49 companies It is understanding customer needs, reducing the tiers of management in order to make quick decisions, focus on items that sell, expanding into new marketing opportunities, and developing strategies that can survive even Who want to use Who want to during periodic downtimes. Amazon sell products developing Developers Sellers on Amazon is action oriented and hands on Management Style services
Three Customer Sets
Results and Statistics
Y/Y growth for 2011 +38 % Market Cap $90 bn Customers 137 m Employees 56,200 Annual revenue $48bn Internet traffic rank 16th Retail Brand 1st 3 x growth of 2 x market cap 2 x #customers 15 x more than 16% x more than before before
E-commerce market
Paid Out $1.2bn
to buy
Source: Annual report of www.amazon.com for yr 2011
Business Model Evolution
OnLine Book Retailing Auctions & zShops Marketplace Partnerships & Logistic Services
E-commerce Platform/ Web Services
eBooks/Kindle
Homepage View
Personalized View
Personalized View
Amazon Betterizer
Shipment
Standard Shipping (3-5 days) Two day shipping
Total shipping cost= Per shipment cost + Per item cost
Combining Shipment
Total shipping charges= (Per shipment charge + item charge for 1st order) + (Per shipment charge + item charge for 2nd order)
Group my items
Total shipping fee= Highest applicable per shipment cost + All per item cost FREE Super Saver Shipping
Applicable if order placed are at least $25 of eligible Amazon.com products Amazon Prime Membership program for individual or family Annual membership fee $79
One day shipping
Shipment
• In general, however, industry analysts say that Amazon's lowcost shipping programs are causing it to lose money • Bezos acknowledged that Amazon's new shipping policy will be expensive in the short run, but could bring in new customers
7 countries
21 fulfillment centres
9 Mn sq. ft. of warehouse space
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
’10 ’11 ’11
’10
’10 ’11
Source: www.amazon.com
Acquisitions & Expansions
$ 190 m
$ 55 m Tool Crib of the North Planet all.com $ 90 m
1998 2000
$ 645 m
Geoworks
$ 44 m
$ 135 m
$ 58 m $ 42.5 m
Acquisitions & Expansions
2001 2008
$ 75 m
$ 61 m
$ 300 m $ 30 m
Acquisitions & Expansions
THE BOOK DEPOSITORY
2009 2012
$ 920 m
KIVA SYSTEM $ 775 m
Pushbutton
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Net Sales Mix
60,000 60,000 60,000 50,000 50,000 50,000 40,000 40,000 40,000 30,000 30,000 30,000 20,000 20,000 20,000
Sales MixNet sale(in Million dollars) Region wise Sales Mix of Product and services
North America
Net product sales International Net services sales Net sale(in Million dollars) Consolidated (in Million Net sale(in Million dollars) dollars)
10,000
10,000 10,000
0 0 0
2011 2009 2009
2010 2010 2010
2009 2011 2011
Operating Expenses
1,058 (5%) 31-12-2011(in Million dollars) 31-12-2010(in Million dollars) 268(1%) 102(0%) 1,511(5%) 565(1%) 154(0%) 2,617(6%) 386(1%) 106(0%) 660(3%) 1,029(2%) 1002(3%) 1,973(9%) 4,443 (10%) 2,808(9%)
31-12-2009(in Million dollars)
USD 23,039 USD 46,658 USD 32,374
Cost Cost of sales of sales Cost of sales Fulfillment Fulfillment Fulfillment Marketing Marketing Marketing and and Technology Technology Technology and content content content and and General General General and administrative administrative administrative Other operating Other operating Otherexpense (income), operating expense (income), expense (income), net net
18,978 (82%) 37,288(81%) 26,561, 82%
net
Operating & Gross Profit, Gross Margin
1,600 12,000 22.65% 1,400 22.60% 10,000 22.55% 1,200 8,000 22.50% 1,000 22.45% 6,000 800 22.40% 600 22.35% 4,000 22.30% 400 2,000 22.25% 200 22.20% 0 0 22.15% 2009 2009 2009 2010 2010 2010 2011 2011 Gross profit(in Million dollars) Income from operations(in Million dollars) Gross margin(% of net sales)
Income from operations(in Million dollars) Gross profit(in Million dollars) Gross margin(% of net sales)
2011
Competitor Analysis
Parameter Total Asset Amazon US$ 25.27 billion eBay US$ 27.320 billion
Revenue Operating Income
Net Income
US$ 48.07 billion US$ 862 million
US$ 631 million
US$ 11.651 billion US$ 2.373 billion
US$ 3.229 billion
Employee Strength
69,100
27,770
Key Differentiators
Parameter
Payment collection and risk
Seller
Return Policy
Seller
Seller has to honour amazon’s A to Z policy
Fees
Low
High
Shipping Cost
Seller
Key Differentiators
Product Fulfillment
Independent company but integrates with eBay checkout More flexible and slightly less expensive Products shipped in plain box or your custom box Advertising messaging inserts allowed
Fulfillment By Amazon (FBA)
Product qualifies for Amazon Prime With FBA you can ship to eBay, Amazon or any customer from any venue – but shipped in Amazon box Seller supplies labels and bar codes Ad message inserts prohibited
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
How long do you stay @
Stickiness
?
Holds customers and keeps them coming back for more!
Measurement: *Time spent at a website *Number of visits per person *Number of pages viewed
Content
Products & Services
Interactivity & Production Values
Personalization
Co-Creation & Recognition
Customization
Ownership & Belonging
Variety
2 1
Easy Navigation
3 4 5
Speed & Delivery
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Mobile Apps
• Smartphones are the dominant cell phone and apps for all platforms are growing • Consumers can increasingly “like” or follow a favorite retailer and get discounts or tips on deals • Look for more user-generated video on retail sites
Social Networking
Video Less flash more function Daily Deals
• Consumers haven’t responded to flashy apps or virtual dressing and rightly so
• Sites will be easily able to reproduce at a furious pace
Thank you!
doc_925660737.pptx
Detailed analysis of biggest e-commerce company in the world.
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Company Overview
Founded in 1994 in Seattle, USA Founder- Jeff Bezos Beginning as Online Book Store
69,100 Employees
Revenue 2011- $ 48.07 bn
Worldwide network of fulfilment Worldwide presence, dominant in North America
Global leader in ecommerce
Presence in 20 product categories
Mission
• ‘To leverage technology and the expertise of our invaluable employees to provide our customers with the best shopping experience on the Internet’
Vision
• ‘To be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online’
Values
• Customer Obsession • Innovation • Ownership • High Hiring Bar
Objective
• ‘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’
Core Value Proposition
• Price • Convenience • Selection
Strategy
• ‘To ‘Get Big Fast’ by investing aggressively in new product categories and new businesses, by spending money on brand awareness and getting new customers’
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Retail Goods
Retail Goods Consumer Electronics
Retail Goods Consumer Electronics Computing Services
Simple Queue Service
Simple Storage Service
Elastic Compute Cloud
eBooks/Kindle
Amazon reported 80% of eBook market >450 000 books available for download
eBooks downloaded from Amazon not exclusive to Kindle
Newspapers, magazines and blogs subscription
"Our vision is to have every book ever printed, in any language, all available in tinder 60 seconds” - Jeff Bezos, Amazon.com CEO
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Internal Strengths and Weaknesses
STRENGTHS
-
WEAKNESSES
Lack of Spanish website version (Latino and Hispanic Americans are the fastest-growing online ethnic group) Risk of introduction of wrong new categories which could damage company’s brand Certain products (high volume/weight) have high shipping costs which could confront with local offline retailers
-
Strong brand name Pricing policy with discounts Customer service support Effective automated distribution centers in the US and overseas Developed and upgraded technology: software and hardware Pioneer in the syndicate selling on the Web Two segments: B2C and B2B ecommerce
-
External Opportunities and Threats
OPPORTUNITIES
Construction of an extensive community of buyers Growth of internet users in the next five years, predominantly in the international market E-commerce expansion in Asia and the Pacific Several product categories with high penetration of retail on-line sales
THREATS
-
-
-
eBay, Barnes & Nobles, and WalMart Possible rejection to on-line sale in international markets if new taxes (Value Added taxes: VAT) in products are levied Competition will increase due to the low barriers to entry in the market: offline companies are coming online
Business Model
Explained using Homman’s Model
Founder’s Vision Strategy Structure
MIS
Climate
People Result
Management Style
Current Condition
Founder’s Vision
Strategy
Structure
‘To be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.’ Started with books in 1995 and now selling in around 16 categories including books, music, movies, consumer electronics, web services, and more.
MIS
People
Management Style
Who want to buy products Jeff Bezos, founder and innovator of Amazon.com realizes that it is not merely on Amazon technology that has made his company build a world-wide customer base of Consumers over 17 million. 69,100 Employees Acquired 49 companies It is understanding customer needs, reducing the tiers of management in order to make quick decisions, focus on items that sell, expanding into new marketing opportunities, and developing strategies that can survive even Who want to use Who want to during periodic downtimes. Amazon sell products developing Developers Sellers on Amazon is action oriented and hands on Management Style services
Three Customer Sets
Results and Statistics
Y/Y growth for 2011 +38 % Market Cap $90 bn Customers 137 m Employees 56,200 Annual revenue $48bn Internet traffic rank 16th Retail Brand 1st 3 x growth of 2 x market cap 2 x #customers 15 x more than 16% x more than before before
E-commerce market
Paid Out $1.2bn
to buy
Source: Annual report of www.amazon.com for yr 2011
Business Model Evolution
OnLine Book Retailing Auctions & zShops Marketplace Partnerships & Logistic Services
E-commerce Platform/ Web Services
eBooks/Kindle
Homepage View
Personalized View
Personalized View
Amazon Betterizer
Shipment
Standard Shipping (3-5 days) Two day shipping
Total shipping cost= Per shipment cost + Per item cost
Combining Shipment
Total shipping charges= (Per shipment charge + item charge for 1st order) + (Per shipment charge + item charge for 2nd order)
Group my items
Total shipping fee= Highest applicable per shipment cost + All per item cost FREE Super Saver Shipping
Applicable if order placed are at least $25 of eligible Amazon.com products Amazon Prime Membership program for individual or family Annual membership fee $79
One day shipping
Shipment
• In general, however, industry analysts say that Amazon's lowcost shipping programs are causing it to lose money • Bezos acknowledged that Amazon's new shipping policy will be expensive in the short run, but could bring in new customers
7 countries
21 fulfillment centres
9 Mn sq. ft. of warehouse space
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
’10 ’11 ’11
’10
’10 ’11
Source: www.amazon.com
Acquisitions & Expansions
$ 190 m
$ 55 m Tool Crib of the North Planet all.com $ 90 m
1998 2000
$ 645 m
Geoworks
$ 44 m
$ 135 m
$ 58 m $ 42.5 m
Acquisitions & Expansions
2001 2008
$ 75 m
$ 61 m
$ 300 m $ 30 m
Acquisitions & Expansions
THE BOOK DEPOSITORY
2009 2012
$ 920 m
KIVA SYSTEM $ 775 m
Pushbutton
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Net Sales Mix
60,000 60,000 60,000 50,000 50,000 50,000 40,000 40,000 40,000 30,000 30,000 30,000 20,000 20,000 20,000
Sales MixNet sale(in Million dollars) Region wise Sales Mix of Product and services
North America
Net product sales International Net services sales Net sale(in Million dollars) Consolidated (in Million Net sale(in Million dollars) dollars)
10,000
10,000 10,000
0 0 0
2011 2009 2009
2010 2010 2010
2009 2011 2011
Operating Expenses
1,058 (5%) 31-12-2011(in Million dollars) 31-12-2010(in Million dollars) 268(1%) 102(0%) 1,511(5%) 565(1%) 154(0%) 2,617(6%) 386(1%) 106(0%) 660(3%) 1,029(2%) 1002(3%) 1,973(9%) 4,443 (10%) 2,808(9%)
31-12-2009(in Million dollars)
USD 23,039 USD 46,658 USD 32,374
Cost Cost of sales of sales Cost of sales Fulfillment Fulfillment Fulfillment Marketing Marketing Marketing and and Technology Technology Technology and content content content and and General General General and administrative administrative administrative Other operating Other operating Otherexpense (income), operating expense (income), expense (income), net net
18,978 (82%) 37,288(81%) 26,561, 82%
net
Operating & Gross Profit, Gross Margin
1,600 12,000 22.65% 1,400 22.60% 10,000 22.55% 1,200 8,000 22.50% 1,000 22.45% 6,000 800 22.40% 600 22.35% 4,000 22.30% 400 2,000 22.25% 200 22.20% 0 0 22.15% 2009 2009 2009 2010 2010 2010 2011 2011 Gross profit(in Million dollars) Income from operations(in Million dollars) Gross margin(% of net sales)
Income from operations(in Million dollars) Gross profit(in Million dollars) Gross margin(% of net sales)
2011
Competitor Analysis
Parameter Total Asset Amazon US$ 25.27 billion eBay US$ 27.320 billion
Revenue Operating Income
Net Income
US$ 48.07 billion US$ 862 million
US$ 631 million
US$ 11.651 billion US$ 2.373 billion
US$ 3.229 billion
Employee Strength
69,100
27,770
Key Differentiators
Parameter
Payment collection and risk
Seller
Return Policy
Seller
Seller has to honour amazon’s A to Z policy
Fees
Low
High
Shipping Cost
Seller
Key Differentiators
Product Fulfillment
Independent company but integrates with eBay checkout More flexible and slightly less expensive Products shipped in plain box or your custom box Advertising messaging inserts allowed
Fulfillment By Amazon (FBA)
Product qualifies for Amazon Prime With FBA you can ship to eBay, Amazon or any customer from any venue – but shipped in Amazon box Seller supplies labels and bar codes Ad message inserts prohibited
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
How long do you stay @
Stickiness
?
Holds customers and keeps them coming back for more!
Measurement: *Time spent at a website *Number of visits per person *Number of pages viewed
Content
Products & Services
Interactivity & Production Values
Personalization
Co-Creation & Recognition
Customization
Ownership & Belonging
Variety
2 1
Easy Navigation
3 4 5
Speed & Delivery
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
- from A to Z
Company Overview
Mission, Vision & Values Core Value Proposition, Objective & Strategy
Product Range
Ebook Kindle
Business Strategy
SWOT Analysis HOMAN’s Model Amazon.com Business Model Evolution Website Layout Personalized View Shipment & Logistics
Geographical Expansion and Acquisitions Financials and Competitor Analysis Indicators of Customer Satisfaction Future Scope
Mobile Apps
• Smartphones are the dominant cell phone and apps for all platforms are growing • Consumers can increasingly “like” or follow a favorite retailer and get discounts or tips on deals • Look for more user-generated video on retail sites
Social Networking
Video Less flash more function Daily Deals
• Consumers haven’t responded to flashy apps or virtual dressing and rightly so
• Sites will be easily able to reproduce at a furious pace
Thank you!
doc_925660737.pptx