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- Realizing that their business model is quickly being copied by its competitor, Amazon.com differentiates itself from the others by providing superior customer service. Better customer service in Amazon.com comes in the form of additional features in their website to enhance the customer experience.
- Measuring tool: ForeSee Experience Index: US Retail Edition
One of the biggest advantage amazon.com has is its ability to sell books and other products at extremely low price without compromising the quality of its product or service. This advantage of Amazon.com quickly became one of its most important success factor.
“data gathered during 2013 and features company-level and channel-specific customer satisfaction analysis for the top 100 U.S. retailers. The report’s revealing findings from more than 67,700 customer surveys allow for comparisons of both aggregate satisfaction and satisfaction with individual retailers at the company and channel level.”
-Amazon was ranked number 1 for the 9th consecutive year in a row.
Being one of the first few companies that ventured into the e-commerce business, Amazon.com has the first mover advantage compared to WalMart online or Barnesandnoble.com who joined shortly after. Being one of the first few, Amazon.com enjoyed benefits like having a strong customer base, a strong brand and first hand experience of handling or running business with such nature.
Leveraging on the power of the internet, Amazon.com are able to provide its customers a wide selection of books and product. Unlike the traditional retailers that needs to stock up inventory in order to display out to the public, Amazon.com displays its goods through an electronic catalog without having to stock all that is displayed.
Measuring tool: Net Sales (millions)
Organizations must ensure robust processes for product or service delivery have been put in place to deliver on the expectations set within the purchase process. Maintaining a superior distribution system allows Amazon to have a high customer retention rate compared to other competitors. The customers trust that Amazon will deliver the purchased goods on time, and with little hassle.
Measuring tool: Inventory (millions)
Measuring tool: Inventory Turnover (millions)
Alex Vincent
Joe Zhou
Bryce Rose
Kurt Christensen
Bryan Brody
Pricing
Amazon (Millions)
2012: $45,971
2013: $54,181
Ebay (Millions)
2012: $6,968
2013: $7,640
Overstock (Millions)
2012: $900.85
2013: $1,056.55
1- Trust
2- Simplicity
3- Sales & Promotions
4- Buyer Experience
1- Trust.
Upscale store vs. garage sale.
2- Simplicity.
What would one click get you?
3- Sale & Promotions.
Playing on Repeat
4- Buyer Experience.
Check-out and Shipping speeds
1- Trust
2- Simplicity
3- Sales & Promotions
4- Buyer Experience
1- Trust.
The target market.
2- Simplicity.
Both equal.
3- Sales & Promotions.
Both equal.
4- Buyer Experience.
Convenience