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Amazon presentation

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  1. 1. OUTLINES  Introduction-Company Background  Brand Identity  Productions  Competitors-Competitive Advantages-Competitive Disadvantages  Financial Information  SWOT Analysis  Marketing Strategies of Amazon  Supply Chain Management Y O U C A N G E T A N Y T H I N G , E V E R Y T H I N G A T A M A Z O N . C O M 1
  2. 2. INTRODUCTION  Amazon.com is a US based multinational electronic commerce company.  Headquartered in Seattle, Washington, it is the world's largest online retailer. • Jeff Bezos founded Amazon.com, Inc. in 1994 and the site went online in 1995. • The name Amazon.com was chosen because the Amazon River is one of the largest rivers in the world.  Amazon.com started as an online bookstore but soon diversified into selling DVDs, CDs, MP3 downloads, computer software, video games, electronics, apparel, furniture, food, and toys.  Amazon.com listed with the tagline, ‘Earth’s biggest bookstore’.  Worldwide Company Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 2
  3. 3. BRAND IDENTITY Y O U C A N G E T A N Y T H I N G , E V E R Y T H I N G A T A M A Z O N . C O M 3 Brand as Product • Wide range • Lowest price • High service • Reliability • Value for money Brand as Organization • Innovative • Customer friendly • Global • Trustworthy Brand as Person • Honest • Reliable • Timely • Energetic • Friend Brand as symbol • Symbol for reliability • Functional appeal • Modern/With less heritage
  4. 4. Y O U C A N G E T A N Y T H I N G , E V E R Y T H I N G A T A M A Z O N . C O M 4 PHYSIQUE Relationship • Internet-based • Started as an online bookstore • Sells a wide range of products now • Attractive Prices PERSONALITY  World's largest online retailer • Established separate websites in different countries • Acquired multiple organizations and websites CULTURE  Punctual • Environment-friendly
  5. 5. Y O U C A N G E T A N Y T H I N G , E V E R Y T H I N G A T A M A Z O N . C O M 5 Relationship RELATIONSHIP  Offers international shipping to certain countries for some products REFLECTION • Buy everything at the click of a button • Easy shopping in less time SELF -IMAGE • Accessible • Customer centric • Exclusive products
  6. 6. ALL THESE COMPANIES BELONG TO AMAZON Y O U C A N G E T A N Y T H I N G , E V E R Y T H I N G A T A M A Z O N . C O M 6
  7. 7. PRODUCTIONS AND SERVICES PRODUCTIONS SERVICES Appstore Online Shopping The Book Depository Web Hosting Game Studios Content Distribution Instant Video Instant Video UK Audible Instant Video German Kindle Lab126,Studios, Twitch.tv, Woot, My.habit.com ,Shopbop, Askville Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N 7
  8. 8. COMPETITORS DIRECT COMPETITORS  Target  Walmart  Overstock.com  Barnes and Noble  Apple(Media)  Samsung(Media)  Ebay  Netflix(Media) INDIRECT COMPETITORS  Google  Brick and Mortar store  Third –Party Wholesale Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N 8
  9. 9. COMPARISON I Y O U C A N G E T A N Y T H I N G – E V E R Y T H I N G A T A M A Z O N . C O M 9  Auction model of retailing  More number of sellers and buyers  Lesser inventory cost  Better reach and global presence (Amazon still doesn’t have a specialized unit in India where as ebay.in is doing well)  Good customer service and very less error rate  Multiple listing per product.  Normal retailing model of business  Faster search and transaction speed  More trusted brand by customers  Products are on an average cheaper than any other site  Late in global entry and not fully utilized global distribution  Best in the industry in customer service  Simplicity due to one listing per product  More repeat purchase
  10. 10. COMPARISON II Y O U C A N G E T A N Y T H I N G – E V E R Y T H I N G A T A M A Z O N . C O M 10  Largest retailer  Online sales of 4 billion in 2010  Store sales around 400 billion in 2010  Better brand value due to store presence  17% growth in 2010  Low profit margin  Customer base of 200 million  Subsidiaries in 14 countries  Customer service ranking is 10  Largest online retailer  No store presence  Online sales of 34 billion in 2010  40% growth in 2010  Better prices than Walmart !!! (cheaper by almost 19 %)  Diversified portfolio with futuristic outlook  Customer base of 137 million  Customer service ranking is 1
  11. 11. COMPETITORS COMPETITIVE ADVANTAGES  Differentiator- Process  Cost Leadership- Products-Pricing  Convenience  Technological Capabilities COMPETITIVE DISADVANTAGES  E-Commerce limitation  Too many business lines  Dependency on Partners  Government Regulation- Lawsuits Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N 11
  12. 12. KEY DRIVERS OF GROWTH  Third Party or Seller Business is a key driver of growth for Amazon It allows Amazon to increase selection and grow faster It also helps push down prices on Amazon as Third Parties fight for buyers  Another key driver of growth is Amazon Prime - Amazon's program that gives annual free two-day shipping for a $79 subscription Amazon prime is driving significant growth internationally (primarily Europe)  The e-commerce market is growing at 14% and every Amazon segment is growing faster  Electronics and General Merchandise market in US is growing five times the US e-commerce market Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 12
  13. 13. FINANCIAL INFORMATION -2014 REVENUE 88988 billion OPERATING INCOME 178 million NET INCOME 241 million TOTAL ASSETS 54505 billion TOTAL EQUITY 10 741 billion TOTAL EMPLOYEES 154 100 13 Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M
  14. 14. SWOT ANALYSIS Y O U C A N G E T A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 14 America's largest online retailer Diversified into product lines other than books to strengthen customer reach Kindle builds strong presence in the eBooks Free shipping offers would be a challenge in the long run Late in entering emerging markets like China and India Acquisitions extend product line and strengthen technical platform Increase in online retail sales in the US Poor publicity with publishers due to the pricing model Launch of Apple's iPad intensifies competition STRENGT HS WEAKNESS ES OPPURTUNITIE S THREATS
  15. 15. BSC MATRIX Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 15 MarketGrowthRate HIGH LOW LOWHIGH STARS • Amazon Kindle • Amazon Fresh • Amazon.com • Diapers.com • Instant Video CASH COW •IMDB •Alexa •Audible.com •Createspace QUESTION MARK •Pinzon- Private Label •Amazon Web Services •Zappos.com •Lovefilm.com DOGS •Amazon mp3 •Amzon Cloud •Pets.com
  16. 16. MARKETING STRATEGY Amazon.com bases its marketing strategy on six pillars.  It freely proffers products and services.  It uses a customer-friendly interface.  It scales easily from small to large.  It exploits its affiliate’s products and resources.  It uses existing communication systems.  It utilizes universal behaviours and mentalities  Much of its marketing is subliminal or indirect Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 16
  17. 17. MARKETING OBJECTIVES Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 17 Corporate • Build Brand equity and grow the company Marketing • Increase market share • Enhance brand awareness and top of mind recall Distribution • Increase the reach internationally and increase the product assortments Promotional • Communicate brand promises of Amazon • Leverage parent brand name for new businesses Pricing • To be cheaper than the competitors
  18. 18. MARKETING PLAN ONLINE MARKETING 18 PAY PER CLICK ADVERTISING  Purchases PPC ads on Google to direct browsing customers to their websites.  Buys space on the left side of Google’s search listing results, and pays a fee for each visitor to Amazon.com who clicks on their sponsored link AFFILIATE MARKETING  Links to various products in Amazon.com is kept in the websites of third parties or of other retailers.  Amazon.com pays a certain fee for each customer visit through these links. EMAIL MARKETING • Amazon.com engages in permission marketing, where customers give the company permission to send them e- mails detailing product promotions ONLINE ADS  In various social networking sites such as Facebook, Orkut etc  In various communities and discussion forums for specific products and services such as dpreview, goodreads etc Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M
  19. 19. MARKETING PLAN OFFLINE MARKETING 19 MEDIA 1. TV – ads showing benefits of products like Kindle 2. Radio – sponsoring various radio programs EVENTS 1. Shopping Malls: competitions like reading speed challenges 2. Helps in customer experiencing the product (Kindle) PROMOTION 1. Events 2. Online buying experience 3. Online games 4. Free delivery on special occasions OTHERS 1. Sponsored T-shirts pens, mugs etc Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M
  20. 20. SUPPLY CHAIN MANAGEMENT  Items displayed online are unique to each country  Customer Service Representative localized to each country  Each country has access to different kinds of products  Repetitive Inventory at different locations.  Excellent postal services for local shipping but unreliable cross-border logistics 20 Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M
  21. 21. OTHER AMAZON INITIATIVES Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 21 Amazon Cloud drive Cloud computing Amazon Instant Video Video on Demand Service Amazon Web Services Collection of web services giving cloud computing platform Amazon Appstore Interactive venue for developers and buyers Amazon Cloud Player lets you sync music and playlists across computers Amazon mp3 Online music store
  22. 22. Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M 22 AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle Amazon Warehouse Deals offers discounts on refurbished products Amazon Studios online social movie studio Amazon Kindle E- book reade Amazon prime Prime membership program
  23. 23. THANK YOU  23 Y O U C A N A N Y T H I N G - E V E R Y T H I N G A T A M A Z O N . C O M

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