Group Members.

Mohammad Usman
Riaz Ahmad
Arif Hussaain khan
Zubair Ahmad Khan
“What is the business model of
amazon.com?”
 Introduction
US based company.
Established on July, 1995 by Jeff Bezos in Seattle.
Provide various goods to its customers through internet
world wide.
 Bezos chose to name the site after the world largest river,
believing amazon. Com would become the biggest book
store in the world.
Business Model of Amazon.com
“Develop an e-commerce business model
that incorporated substantial growth,
global expansion and ever widening
range of products and services”
 In 1995-96
 No significant online rival.
 Barnes and noble with traditional retail book stores (14% Market
share) .
 Stated with a rapid growth.
 Took less than a year to be recognized as the web’s largest and
best online book store (over one million titles).
 Relied on private investment ($1.2 million)
 Funding from financial institution ($ 8 million).
 Initiatives:
 Personal notification service (E mail notification).
 Recommendation section (Exciding 20 categories).
 Award section (Price wining books).
 Associate Programs (other sites can link to amazon. Com for
selling selections).
 In 1997
 IPO’s. (issued 3 million shares, raised 50 million capital that enable
the company for an aggressive expansion of the business).
 Competition raised from Barnes and Noble being online, supporting
with their 431 retail super stores)
Milestones.
 Reached one million new customers in over 150 countries.
 Had more than 15000 associates web sites.
 Employees grew from 151 to 614.

Relationships with key internet players.

 Yahoo.com.
 Excite.com
 America on line (AOL).
 Netscape e.t.c.
 In 1998
Growth:  Sales grew from US $148 million
in 1997 to US $609 Million.
 6.2 million customers served.
 Expanded operations UK and
 Exceed 750 million revenue
level. Germany.
 60000 Associate members.  Staff increases from 614 to 2100.
 Launched music, video and gift
stores in US.

 Management team was

strengthened with the
appointment of Jimmy Wright as
VP
•Expansion:
Expanded by acquiring Book pages. (one of
the largest online book store in the U-K.
Telebook (Germany’s No ! Online book stores.
News launches:
Amazon.com kids for children's.
Young adult books.
Amazon.de.
 In 1999
Customers exceeding 17 million in over 150 countries.

Management Strength:
 Warren C. Jounson SVP-CFO.
 Jaffery A. Wilk VP-GMO.
 Joseps Galli President & COO.
New Products:
 Toys.
 Games.
 Full Electronic stores featuring arrange of popular product and brands.
 Home improvement products.
Innovations:
 Z shops and auctions.
 Amazon.com any where, Wireless e-commerce service.
 Wish list.
 Recommendation center.
 Cont’d
 Strategic Investments:
 Drug Store. Com (46% Stake).
 Pets. Com.

 Home grocer. Com (35% Stake).

 Gear. Com (Sports).

 Acquisitions
Exchange.com.

Bibilifind.Com.
Musicfile.com
 In 2000
 Amazon.com share price began to fall (fall in NASDAQ).
 Company served over 20 million customer up from 17 million the previous
year.
 Associate program exceeded to 53,000.
 Key Expansion and Initiatives:
 Amazon.com launched Amazon.fr. (offering books, music CDS, DVD’s &
Videos to customer in France)
 Amazon.co.jp.
 Toysrus.com.
 Camera and photo store.
 Kitchen Store.
 Partnered with green light.com.
 Growth:
 Sales were $2.76 billions.
 Employees grew 7600-9000.
 Strategic Investments:
 Ashford.com.
 Eziba.com.
 In 2001
Growth:
Sales increase to over $3.12 bn (13% raised on 20000)
Associate Program grew to approximately 700,000.
Sales increased from $198 million to $661 million. (Three-
fold increased).
Served 25 million customers.
Products and innovations:
Electronic stores up gradations.
Instant order updates.
Amazon.com access launched for visually impaired users.
Opened travel stores with expedia.com
Co-branded websites with borders.com.
Co-branded babies stores with babiesrus.com.
 In 2002
 Mark Peck was appointed chief Accounting officer.
 Udi Manber VP-Chief Algorithm officer.

Expansion:
 Amazon. CA (expansion in international sales base).

Key initiatives:
 Launching of web services.
 Apparel and Accessories store (400 leading brands clothing, shoes

and accessories).
 Strategic alliance was formed with the virgin entertainment group.

 Bank one and Amazon announced a platinum visa card.

 In 2003
Most successful year
Growth:
 Sales by the third quarter $3.3 billion which were $814 million on
the same time last year.
 37% sales from out side the US.
 Income form operations remained positive (total $133 million).
Initiatives:
 Amazon.co.jp launched and electronic store.
 Sporting goods stored.
 An E-commerce with target corporation was extended un till
2008.
Spoofing:
 Company determined to stop email forgery and fraud (filed 11
lawsuits against deceptive online marketers).
Cont’d
Key Components of Offerings :
Browsing.
Searching.
Recommendations & Personalization.
One click technology.
Availability and fulfillment.
 In 2004
What we were doing really is new. And
if we followed that second rule-follow
and don’t lead-we would be in serious
very quickly.
QUESTIONS AND QUERIES
????????????