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Julia Rauchenberger

on 20 February 2017

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Transcript of Amazon

The History of Amazon
Founded by Jeffrey P. Bezos in 1994 and came online in 1995 with the original name of Cadabra Inc.
The name was changed to Amazon because the Amazon River is the largest river in the world and beginning with the letter "a" will help the company to appear first on search engines.
Amazon is an international online shopping website that offers products worldwide ranging from books, musics and movies to furniture, beauty products, clothing and food.
The Amazon headquarters are located in Seattle Washington, they handle all operations in industries across North America, Europe and Asia that distributes products to all areas of the globe.
Amazon is a commercial search engine consistently ranked as one of the top 10-15 search platforms alongside Google and E bay.
It's industry is catalog and mail order houses and the sector is services, some of the main competitors of Amazon are Apple and Barnes and Nobel.
The composition value is 1130.3
Their 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.
Product: The Amazon Kindle
One of Amazon's newer, popular products is the Amazon Kindle, which is primarily an eBook reader, but it also has many other features available with over 700,000 apps for movies, music, games etc.
The amazon kindles in which apps are available to download are the Kindle Fire and the Kindle Fire HD
The first generation kindle was released on November 19. 2007
On February 10, 2009 the second Kindle was created, it was slimmer than the first generation kindle and did not have an SD slot
The Kindle DX was introduced on January 19, 2010, this new Kindle had a much larger screen than the previous Kindles and it supports PDF files.
The third generation Kindle was released on July 10, 2010 also called the Kindle Keyboard.
The fourth generation Kindle was created with available web browsing, WiFi, and a slight reduction of weight and size. It was released on September 28, 2011. On the same day Amazon announced a touch-screen kindle called the Kindle Touch.
The Kindle Fire HD was introduced on September 6, 2012 and then the Kindle Fire HDX was introduced on September 25, 2013.
This product is a very convenient luxury because it makes thousands of books easily accessible in a small, light and compact tablet.
Some of amazon's direct competitors that are in the Mail and Catalog Order Houses industry are Ebay, Zulilly and Overstock
All of these websites offer a wide variety of products readily available for online purchase and shipment, which is the same service that amazon provides.
There is a great amount of competition with in the product, the Amazon Kindle such as, the Apple iPad, the Barnes and Nobel Nook, the Microsoft Surface, the Blackberry Playbook and many other tablets.
Brand Extension/Line Extension
Amazon owns many companies in order to help their product grow such as Zappos, IMDB, Audible, Askville, Shelfari, Woot and many other popular websites.
Zappos and Woot are websites very similar to Amazon, but Zappos' primary focus is shoes and Woot's focus is refurnished items
Amazon also has different brands of the company that serve to sell specific things:
Amazon Fresh sells and delivers groceries in Seattle, Los Angeles and San Francisco
Amazon Studios is an online social movie studio
Amazon Basics are amazon-branded electronic products
Amazon's various extensions of their company helps to diversify the company.
I do not believe Amazon is over extended because all of there new lines are successful and all of the companies that they have bought are very popular.
While Amazon is working on expanding their company it is also always changing and making the core Amazon website better and more efficient. Amazon.com is still the world's largest retail store used today.
With the thousands of products available on amazon, there is a great variety in pricing.
The Amazon Kindle has a variety of pricing as well.
First Generation Kindle - $69
Kindle Paperwhite - $ 119
Kindle Paperwhite 3G - $189
Kindle DX - $199
Fire HD - $139
Fire HDX - $229
Fire HDX 8'9'' - $379
US-based vendor's entry-level Kindle Fire HD is enjoying better sales than its high-end Kindle Fire HDX
After the release of the Kindle Fire HDX there were dramatic price cuts because they were not selling as well as predicted. They reached a price lower than the starting price of the Kindle Fire HD.
The Kindle is relatively cheaper compared to the Apple competition, the iPad, which ranges from $500 to $300 depending on the type of iPad.
A cheaper product available is the Barnes and Nobel Nook which ranges from $60 to $180, but the Kindle has a wider selection of books available and the Kindle Fire has better web browsing and navigation capabilities than the Nook HD.
Brand Strategy
Market Growth Rate
Relative Market Share
Question Mark
Cash Cow
Amazon Kindle
Amazon Fresh
Instant Video
Pinzon-Private Label
Amazon Web Services
Amazon MP3
Amazon Cloud
Brand Strategy
Market Penetration- With the closing of Borders Book Stores, Amazon was able to pick up the majority of Borders costumers. , Amazon’s share of book spending in the first quarter of 2012 was 29%, up from 23% in the comparable period in 2011.
Product Development- In order to develop a new product Amazon uses the strategy of "working backwards". Instead of creating the product and then trying to get customers attracted to it, Amazon works backwards from the customer, learning about what the customer wants and then creating a product to comply to their wants.
Product Diversification- Since its the beginning Amazon has diversified greatly. It started out as solely a bookstore and then it diversified to selling music, video, downloads, general electronics, apparel, furniture, food, and toys. Amazon's goal is to become a one-stop-shop for all of its costumers.
If you are a member of Amazon Prime many of their products are available with free shipping.
The packaging of the products depends on the size, shape and weight of the product. Most Amazon packages arrive in cardboard boxes or plastic wrappings.
If you receive a damaged product then Amazon offers a free return or refund.
If a package is lost or labeled "undeliverable" then amazon will give the customer a complete refund.
Promotion of the Amazon Kindle
Marketing Environment: SWOT Analysis
Final Assessment
The Kindle is promoted on the homepage of the Amazon website. The ad for the Kindle is strategically placed in the center of the top of the homepage so that the first thing the costumer sees when they enter the website is an advertisement for the Kindle.
There are also many different commercials that are shown on television to promote the different Kindles available such as the Kindle Fire HDX or the Kindle Paperwhite.
Each commercial discusses the individuals qualities of the kindle. For example the new Kindle Fire HDX comes with a Mayday in which you can talk to a Kindle expert to answer any questions you may have. This new button is what many of the Fire HDX's commercials focus on. This is done in order to propagate the new features available on the Kindle and to interest more people.
Amazon also uses social media sites such as Twitter to advertise their upcoming promotional events and to advertise their products such as the Kindle.
Another way that Amazon advertises its products is through their Associates Program which is a web service and application programming interface that gives application programmers access to Amazon's product catalog data. The motivation behind the free Associates Program is to give partners the opportunity to earn money by promoting for Amazon products. The access is given to developers of applications that primarily bring or at least seem to have the potential to bring gains to Amazon.
Amazon also has a very successful email marketing campaign, which is the primary way the Amazon directs costumers to its site. If a costumer spends some time purchasing from or simply browsing Amazon.com, it’ll only be a matter of hours before they receive emails from Amazon promoting their company.
Brand and consumer focus
Large selection
Provides consumer with low costs
Many third party merchants
Extensive hardware and digital ecosystem
Low margin businesses
International operations
Taking on competition
Cloud computing
Consumers staples and groceries
Amazon Prime
Online advertising
Geographical Expansion
Competition among existing players
Entry of newer firms
Marketing Environment: PEST Analysis
Political- International policies are getting in the way of Amazon's growth. Expansion to some countries is tough due to policies relating to online purchases. Regulations are also interfering with online purchases.
Economical- Currency differences can cause issues when selling multimedia over the internet since the company is based out of the US and deals with US dollars.
Social- In some areas in the world the internet is restricted due to religious and ethical factors. This will prevent sales in these regions for Amazon. But, with the amount of internet users increasing every year, Amazon has the opportunity to increase their market share. Social networks are extremely popular. Sites like Facebook and Twitter are visited by billions of people every day. Amazon can increase its awareness through social network marketing.
Technological- With Amazon being an online retailer, they are forced to find innovated methods to surpass their competitors. People are now able to access the internet anywhere in the world through mobile devices and tablets with 3G or 4G capabilities. This Makes price comparing available when a consumer is anywhere in the world shopping. If Amazon can offer very competitive prices, they can easily pull consumers in even when the consumer is shopping at another store.
From this project I have learned about the vast companies and brands that Amazon owns.
Amazon is very successful in delivering equity to the customer because it delivers all across the globe and offers thousands of brands at acceptable prices.
Amazon responded to the growing need for social responsibility by creating Amazon Smile. Amazon Smile carries the same products and is the same website as amazon.com except there is a 0.5% donation to charity every time a consumer shops. It also allows consumers to donate a portion of their total portion to over one million available charities.
I think that Amazon will continue to grow in the future and be successful. I think that the next step Amazon will take is to create their own smartphones in order to compete even more with Apple, Blackberry and their other competitors.
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