2. Vision / Mission:
Our vision is 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.
3. CORE VALUES:
Customer Obsession
Innovation
Bias for Action
Ownership
High Hiring Bar
Frugality
7. Competition
Customer Third Party
Support Linkages
Specific
Environment
Investment
Advancement
Environmen
s in WWW
t
Internet Delivery
Infrastructure Mechanism
9. AMPLE
SUBSTITUTES IN
THREAT OF NEW THE MARKET INTENSE
ENTRANTS COMPETITION,
1. Competitor retail BOTH ONLINE
1. Low Entry portals like EBay AND OFFLINE
Barriers allows easy etc.
entry of other 2. Online portals of
players existing retail 1. Retail stores like
2. Existance of outlets like WalMart/Tesco/Relia
Specialized walmart.com nce Fresh
competitors. 2. Mom and Pop
3. Ease of entry and stores
inverstment 3. Government
Regulation
SUPPLIER
BARGAINING
Amazon
POWER CONSUMER
BARGAINING
1. The POWER
manufacturers
control the supply to 1. Availability of
Amazon. similar products at
a cheaper price
2. Other third-party
service providers like 2. Consumer
delivery, cash Switching costs
collection can also are low
impact Amazon
12. Favorable Unfavorable
I Strengths: Weaknesses:
n Strong Brand Name Low Finance Performances
t Strong Infrastructure Lack of language specific
e High Quality Mgmt team website
r Customer Service Support Risk of intro. of wrong new
n Developed and Upgraded Tech. categories
a Free Shipping
l Shipping costs (high volume /
weight products)
E Opportunities: Threats:
x Growth of Internet Users Competition
t Construction of community of Weak Economic Condition
e buyers Low Entry Barriers
r Taxes prohibition Segments of population
n E-commerce Expansion uncovered.
a Several product categories with
l high penetration
14. STRATEGY:
New management discipline to be incorporated
through an ongoing process of innovation and
renewal.
. At its roots Amazon is built to transform.
Embracement of transformational growth in its
white space.
Have a viable and innovative business model built
around a market-changing customer value
proposition and a radical profit formula.
Transformed its business from direct sales to a
sales-and-service model, aggregating many
sellers under one virtual roof and receiving
commissions from the other companies' sales.
15. Extracting new potential markets:
In 2002 Amazon launched a web services platform within
five years the site used by Amazon's web-services
platform had grown into the seventh-largest in the world.
And Amazon kept going.
Continuously renovating the company and its existing
products.
Company seized its white space when it devised a new
value proposition, offering a commission-based
brokerage service to buyers and sellers of used books.
Moved into its white space again by developing a model
to serve an entirely different customer: third-party sellers.
17. RECOMMENDED STRATEGIES:
• Strength: Strong Brand Name
• Opportunity: Extensive Community of Buyers
• Strategy: Amazon is a big brand as far as e-commerce is concerned.
To sustain that image among new age internet users and to build an
extensive community of buyers which we see as a future
opportunity for Amazon. Social networking sites like
facebook, twitter should be leveraged in creating an
extensive community of buyers.
• Strength: High Quality Management Team and Upgraded Technology
• Opportunity: Growth of Internet users
• Strategy: Asian countries like India as per our external opportunities
analysis will see the maximum number of new internet users over the next
decade. So collaborating with Internet providers and providing insight to
people through various media to shop using internet and introducing
language specific websites will facilitate shopping for the local customers.
18. RECOMMENDED STRATEGIES (CONTINUED)
Weakness: Low Finance Performance
Threat: Removal of tax-benefits on online sale.
Strategy: One of the major strengths of Amazon is the pricing of its offerings
thanks to the tax benefits to internet shopping endorsed by many
governments. Ethical pitching for those governments across its markets
which extend tax freedom for sale of products through internet should also
be a long term strategy.
Weakness: Risk of Introduction of wrong products/categories
Threat: Competition from mushrooming companies
Strategy: A wrong product introduced in the market will take a strong
beating on the customer’s loyalty on Amazon. Though, Amazon has recently
seen success with its kindle e-reader there always exist a risk of introduction
of a wrong product. There should be a increase in spend on Marketing
Research and introduction of new products should be done with utmost care
taking inputs from the research outcome.
19. • Weakness: No touch and feel of the product
• Threat: Competition from brick and mortar companies
• Strategy: Evolution of consumer behavior, combined
with the advance and affordability of technology is starting
to pit Amazon against brick and mortar mass retailer like
Wal-Mart. As a backup plan to counter a situation of
imposition of taxes on internet shopping in the near future
which may force it to lose the price war in comparison to
Wal-Mart(one of its biggest competitors) ,Amazon will have
to proactively invest for development of company centric
world class supply chain management, warehousing and
distribution logistics.
