OVERVIEW

• Founder: Jeff Bezos (Chairman, President , CEO)

• Founded on : July 5 1994 (24 years ago)
• Headquarters: Seattle, Washington, U.S.
• Revenue : 177.86 billion (2017)
• Industry : Internet and online retailing
• Key Products: Amazon Appstore, Prime, Amazon
Web Services, Alexa, Kindle,Amazon Pay, Amazon
Go etc.
• Main Competitor: Alibaba Group, Apple, Google,
Microsoft Corporation, Netflix, Walmart etc.
 ABOUT AMAZON
• Amazon Started with online bookstore, it was the top
online bookstores, which soon converted to the top
online retailer across the world.
• Jeff Bezos named
Amazon after the Amazon
River, he noted that it is the
biggest river in the world,
and he planned to make his
store the biggest bookstore
in the world and became
world’s most customer-
centric company.
 STRENGTHS
1. Low-cost structure and wide variety of merchandise:
Amazon has grown much faster than the entire U.S. e-
commerce market, meaning that the company has
actually increased its market share by taking it from
competitors.
2. Synergies between Marketplace, Amazon Web
Services and Prime:
Amazon Marketplace, Amazon Web Services
(AWS) and Amazon Prime, All three Amazon
offerings support each other and create benefits
that would not be achieved if the businesses
operated independently.
3. Unmatched brand reputation in the retail sector:
Strong brand awareness combined with the company’s
positive reputation helps Amazon to both increase
sales and introduce new products to the market
without the need for huge advertising and marketing
efforts. Amazon has a reputation as a huge online
retailer offering the lowest prices on a vast range of
merchandise, fast shipping, a comfortable shopping
experience and great customer service.
4. Focus on innovation :
Amazon’s strong focus on innovation over the years
has resulted in a better experience for the consumers.
the brand invests in several areas so as to
continuously improve the customer experience.
Example, Amazon Go
 WEAKNESS
• ZERO MARGIN:- One of the biggest weaknesses
and something that has been often commented
upon by analysts and industry experts is that
Amazon operates in near zero margin business
models that have severely dented its profitability
and even though the company has high volumes
and huge revenues, this has not translated into
meaningful profits for the company.
• Shrinking margins: Due to extensive delivery network
& price wars Amazons margins are shrinking, which is
resulting in even losses. In India, Amazon had a loss
of $359 croers in the year 2013-14.
• High Debt: In many developing nations Amazon is still
struggling to make the business profitable thereby
affecting the overall profitability of the group
resulting into High debt.
• Product flops – Amazon launched the fire phone in
the US which was a big flop. At the same
time, Kindle fire(1st generation ) did not pick up as
strongly as Kindle did. Thus, there were several
product flops which caused a dent in Amazon’s deep
pockets.
• Tax Avoidance issue: Amazon has attracted
negative publicity on account of Tax Avoidance in
countries like U.S & UK. Most of its revenue is
generated from these well established markets.
• Negative publicity: Amazon has faced a lot of
negative publicity such as price difference . In
2008, Amazon UK came under criticism for
attempting to prevent publishers from direct
selling at discount from their own websites.
Amazon's argument was that they should be able
to pay the publishers based on the lower prices
offered on their websites, rather than on the
retail price (RP).
 OPPORTUNITIES
• Purchase A Delivery Service - One of the most expensive
parts of Amazon's core business is delivering actual
orders. If Amazon were to purchase UPS, FedEx or DHL, it
would instantly have a massive delivery network. This
would enable it to further undercut its competitors and
deliver groceries fast.
• Enter The Fitness Industry - It’s unclear which fitness
industry Amazon will take over, but it only seems natural
that such a move would be its next target. The sports
industry alone is a moneymaker, and athletes will pay top
dollar to perform. So will their fans. Any major brand on
the market (Under Armour, Lululemon or Nike) might be
Amazon’s next target if they can be bought.
• Partner With Netflix - Netflix's and Amazon's
audiences are very similar, and this would be a great
way to get monstrous insights on these customers'
interests. Amazon could tailor ads and product
placements according to whatever customers are
watching on Netflix and then bombard them with
super-targeted merchandising. This would push
products to customers that didn't even know they
wanted them until that point.
• Focus On Integration Over Acquisition - The next big
arena for Amazon will probably come in the form of
partnerships as opposed to outright acquisitions.
Google, Apple and Amazon are all vying for virtual
assistant supremacy, and a big part of who wins that
fight is integration into existing services.
• Offer Rental Services - I think Amazon would love to
get to a point where it can deliver merchandise and
groceries within an hour everywhere in the country.
After it meets that goal, it will probably open up
item rentals so you can rent an expensive tool for a
couple of days instead of committing to purchasing
something you will only use a couple of times.
• Join The Automotive Space – The space mission
of amazon is called “BLUE ORIGIN” that is a
space launch company ,which will launch a crew
mission in 2019 . The space tourists might pay
an estimate of $100000 to $200000 each for the
visit to MARS . The term blue origin means earth
the place of origin of the idea. The lines said by
the founder JEFF BEZOS “we have million of
people living and working in space , mars is one
of them and then is moon” . Bezos also said that
he want to build space hotels , amusement
parks , colonies for two or three million people
orbiting around the earth. The whole idea
behind this is to preserve earth.
 THANK YOU
Made by:
Saloni Sethi 180MBA168
Priyal Chaudhary 180MBA158
Simran Chaudhary 180MBA172
Simridhi Kochhar 180MBA175