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Strategic 4501 Amazon Presentation
Transcript of Strategic 4501 Amazon Presentation
Founder and Company Information
Mission & Core Values
Future Projections/ Pipeline Projects
The experience that users get while shopping on Amazon is unparalleled from cost effectiveness, ease of use, and standard setting shipping times
What does the market think?
Mission & Core Values
To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.
Six Core Values: customer obsession, ownership, bias for action, frugality, high hiring bar and innovation.
What is Amazon?
The world’s second largest online retailer
A Z Amazon
Founded in 1994 by Jeff Bezos
Headquartered in Seattle, Washington
Founder of Amazon
Entrepreneur and E-commerce pioneer
Study Computer Science and Electrical Engineering at Princeton University
Founded Amazon in 1994, brought Amazon go public in 1997, diversified Amazon’s offerings with sale of CSs and video, clothes and electronics etc
Ranked No.16th Most Powerful Person on Forbes.com
Kun Chen, Mengsi Chi, Kevin Huang, Hao Wan, Qian Yu
High volume, low profit margin e-commerce
Porter’s five forces
High rivalry among existing competitors
High bargaining power of buyers
Low/Moderate bargaining power of suppliers
High threat of substitute products or service
Low barriers of entry
The VRIO Framework
Does Amazon have any Sustained Competitive Advantages?
The VRIO Framework (continued)
Wal-Mart - Largest cost competitive company in the world (cost leadership strategy).
eBay - the world's largest marketplace for rare, discontinued, collectible, or hard-to-find items (differentiation strategy).
Alibaba - China’s and by some measures, the world’s biggest online commerce company(cost leadership strategy).
The Long-tail Business Model
“Sell less of more” by taking advantage of low-cost virtual shelf space.
Amazon obtains a large part of its revenues by selling a small number of units from among almost unlimited choices (A to Z).
An Amazon employee described the long tail as follows: "We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday."
Economies of Scale
Brand name recognition
Wall Street support
Strong product offerings
Information and logistics infrastructure
Low entry barrier
Reliance on logistics providers
High operating and investment costs
International presence (India)
More improved technologies to better integrate their services
Growth potential tapering
Growth of innovation and revenues must be higher than growth of costs
Problems & Challenges with Amazon
Interstate sales tax included (loss of cost advantage)
Increased of Prime membership costs (Consumers’ satisfaction)
Alibaba’s management has voiced ambitions to grow globally.
Keep Wall Street happy
Maintain growth and increase revenue
Global expansion to become integration
Strategic investments into high growth potential industries and companies
Leverage integration models to deliver unrivaled competitive advantages
Amazon last year showed off its plans for Amazon Prime Air. The goal of this new delivery system is to get packages into customers' hands in 30 minutes or less using drones. Putting Prime Air into service will take some time, but Amazon will be ready as soon as the FAA (Federal Aviation Administration) grants permission.
Reply with #AmazonCart to any tweet containing an Amazon product link.
It's always on, just ask for information.
Echo begins working as soon as it detects the wake word.
You can pick Alexa or Amazon as your wake word. Echo is also an expertly tuned speaker that can fill any room with immersive sound.
It takes the intelligence and voice-recognition of Siri and puts it someplace unexpected, inside a smart home device.
WHAT IS AMAZON ECHO?
Industry changing logistics software and hardware for order fulfillments
Automated robots pick inventory from the warehouse based on algorithms and special tape
Used by companies such as Staples, Walgreens, The Gap, Office Depot etc.
Acquired by Amazon in March of 2012 for 775 million dollars
Huge increasing of Revenue and Share price.
Huge increasing of operating expenses as of investing activities
Great increasing actual annual revenue from 1998-2013
Good projected annual revenue for 2014 and 2015 due to the growth trend