By Allison White History of the business Amazoncom is considered a pioneer in online retailing It expanded during the late 1990s to offer the Earths Biggest Selection of books CDs videos DVDs electronics toys tools home furnishings and housewares apparel and kitchen gadgets Through ID: 802389
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Slide1
E-Commerce Company Project: Amazon.com
By: Allison White
Slide2History of the business
Amazon.com is considered a pioneer in online retailing. It expanded during the late 1990s to offer the "Earth's Biggest Selection" of books, CDs, videos, DVDs, electronics, toys, tools, home furnishings and housewares, apparel, and kitchen gadgets. Through third-party agreements, Amazon.com also sells products from well-known retailers including Toysrus.com Inc., Target Corporation, Circuit City Stores Inc., and more!
Slide3Owner
Jeff Preston
Bezos
born January 12, 1964 in Albuquerque, New Mexico to Jacklyn and Ted Jorgensen.. He is an American business magnate and investor.
After he graduated Princeton in 1986, Mr. Bezos worked on Wall Street in the computer science field.Jeff founded Amazon.com in 1994 after making a cross-country drive from New York to Seattle, writing up the Amazon business plan on the way. He initially set up the company in his garage.
Slide4Advantages of being solely online
Worldwide Presence
Cost-effective Marketing and Promotions
Developed a Competitive Strategy
Better Customer Service
Limited Transaction Cost
Reduced overhead costs
Slide5Disadvantages of being solely online
Sectoral Limitations
Costly E-business Solutions for Optimization
Question of Safety
Data Security
Slide6Design of the Website
Slide7Ease of Use
The home page is a company's first, and most important, opportunity to serve the customer. Ease-of-use must start on the home page
.
Some websites are just plain hard to figure out. Amazon.com is done right, the ease of use can not only increase sales, but also impacts Amazon’s performance in search engines.
Amazon.com is an easy to understand and easy to use website, which is a pleasure. You can find what you need, and can do what you went there to do.
Slide8How do they attract customers
- Price leadership. Their prices are consistently lower and, as important, shoppers believe it.
- Choice leadership. Amazon offers seven times as many SKUs as the Top 5 retailers
- Customer satisfaction. People love shopping at Amazon. It's easy.
Slide9SWOT analysis
Strengths
Cost leadership strategy
Superior quality services and products
Strategic acquisitions
Efficient distribution chain and logistics
Weaknesses
Only online presence
Selling at zero margins
Negative publicity
Opportunities
Online payment system
Release more its own brand products and services
Increase services and product portfolio through acquisitions
Physical presence
Threats
Online security
Lawsuits
Strategic alliances
Legislation against tax avoidance
Regional low cost online retailer
s
Slide10What makes Amazon so successful?
Amazon is obsessed with making its customers happy. Unlike many other companies, Amazon will instantly trade off short-term profits for the chance to engender long-term customer loyalty.
Amazon does this despite how much money this philosophy costs the company in the short term. It does this despite being a public company, with impatient public shareholders who generally insist that companies "maximize profits" quarter in and quarter out.
Slide11What is the company’s business model
The company itself defines its lines of business in terms of product sales, service sales, AWS, fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit cards.
Online Retail:
The online retail line of business includes those products sold by Amazon as a
traditional retailer
, most commonly as a low-cost retailer.
Internet Services:
Amazon's internet services cannot easily be discussed as a standalone line of business because it is deeply intertwined with both its retail business and the Kindle ecosystem.
Kindle Ecosystem:
Amazon has expanded its business into manufacturing and distributing the family of Kindle tablets.