12/08/21 1

PRESENTED TO:

 Mr. SALMAN HAFEEZ

PRESENTED BY:
 AAMIR SOHAIL 29S-625
 SABA NAZEER 29S-622
 IRFAN SALEEM 29S-6
 MUHAMMAD ZAMAN 29S-6
• Founded by Jeff Bezos in 1994 and launched in 1995

• Headquarters in Seattle Washington USA

• Started with a unique idea (selling books online)

 History

 November 1994 CEO Jeff Bezos and two associates set up

shop in a converted garage.
 Founder and Bezos opened the virtual doors of Amazon.com's
online store in July 1995 and began selling public.
 In May 1997 Amazon.com completed its initial public offering
(IPO).
 April 1998 the company acquired online bookstores in U.K.
and Germany (first international expansion)
 In 1999 the company launched its own auction site
 In 2000 Amazon.com launched amazon.co.jp and amazon.fr
(Japan and France)
 In January 2003 announced the Free Super Saver Shipping
 September 2003 launched new Sporting Good store.
 Amazon Overview
 Founded in 1994; Started selling books online and now operate
Web sites that offer various products and services, which include:
music, DVDs, videos, electronics, camera and photography,
clothing apparel, shoes, etc.

 Features include: one-click shopping, customer review and e-mail

order verification.

 The company is in coalition with other retailers and offer various

new, refurbished, and used items in categories.

 Headquarters is in Seattle (Washington) with an additional office

in Coffeyville, Kansas. It has six global websites to serve domestic
customers in the US, the UK, Germany, France, Japan and Canada
Amazon.com Basics

Amazon.com sells lots and lots of stuff. The

direct Amazon-to-buyer sales approach is really
no different from what happens at most other
large, online retailers except for its range of
products. You can find beauty supplies,
clothing, jewelry, gourmet food, sporting goods,
pet supplies, books, CDs, DVDs, computers,
furniture, toys, garden supplies, bedding and
almost anything else you might want to buy.
 Vision Statement
•  Our 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.
 Proposed Vision
• To continue expanding in all countries with
Internet access, while maximizing total
commitment in becoming the number one
company in Internet transactions.
 Mission Statement
The company motto: “Work Hard, Have Fun,
and Make History.”

The company’s six core values

Customer obsession
Innovation
Bias for action
Ownership
High hiring bar
Frugality
 Amazon . core values.
 Customer Obsession: We start with the
customer and work backwards.
 Innovation: If you don't listen to your
customers you will fail. But if you only listen to
your customers you will also fail.
 Bias for Action: We live in a time of
unheralded revolution and insurmountable
opportunity--provided we make every minute
count.
 Amazon . core values
 Ownership: Ownership matters when you're
building a great company. Owners think long-
term, plead passionately for their projects and
ideas, and are empowered to respectfully
challenge decisions.
 High Hiring Bar: When making a hiring
decision we ask ourselves: "Will I admire this
person? Will I learn from this person?
 Frugality: We spend money on things that really
matter and believe that frugality breeds
resourcefulness, self-sufficiency, and invention!
 1. Market

2. Customer
Mission Statement Proposed
Our first responsibility is to service our worldwide (1) online
3. Technology customers. (2) We pledge to make every effort to improve the
level of customer service throughout the e-commerce industry
4. Product or by using up-to-date hardware and software (3) and by listening
services to our customers. We will offer customers increased product
selections (4) to fulfill their online shopping desires. We strive
5. Philosophy to be the most used e-commerce portal on the World Wide
Web (6), while conducting operations in a highly ethical (5)
6. Self Concept manner to ensure the long-term profitability and growth for
shareholders.(7) We pledge to contribute to the economic
7. Concern for
survival strength of society and to function as an exceptional corporate
growth, and citizen in all countries that we do business. (8) We vow to
profitability recruit, develop, motivate, reward and retain personnel of
exceptional ability, character, and dedication. In return, we will
8. Concern for provide them good working conditions, superior leadership,
public image short and long term compensation, and an opportunity for
individual growth and employment security.(9)
9. Concern for
employees
 Goals & Objectives

• We seek to be Earth's most customer-centric

company, where customers can find and
discover anything they might want to buy
online, and endeavor to offer customers the
lowest possible prices.
 1-Click
• 1-Click, also called one-click or one-click buying, is the
technique of allowing customers to make
online purchases with a single click, with the payment
information needed to complete the purchase already
entered by the user previously. it allows an online
shopper using an internet marketplace to purchase an
item without having to use shopping cart software.
Instead of manually inputting billing and shipping
information for a purchase, user can use one-click
buying to use a predefined address and credit
card number to purchase one or more items.
 Barnes & Noble
• Amazon filed a patent infringement lawsuit in
October 1999 in response to Barnes &
Noble offering a 1-Click ordering option
called "Express Lane." After reviewing the
evidence, a judge issued apreliminary
injunction ordering Barnes & Noble to stop
offering Express Lane until the case was
settled.
Product Lines
Product Lines
 If You feel that you have a THIRST of
games, then AMAZON.COM is a
PARADISE for you (really, believe me)
Product Lines
Amazon.com Ordering Process
Initial Login/Registration

 If New customer;

Enter email address, choose new customer option, and

continue.
 If Returning Customer;

Enter email address, choose returning customer option,

enter previously chosen password, and continue.
 New Customer Address
Registration
 New Customer enters their name, address,
phone number, city, state, zip code and
country.

 New customer also determines if the given

shipping address is same as the billing address.
If not, it asks for the billing address in the
next step.
Choose Shipping/Verify Order and
Address
 Customer chooses standard or expedited
shipping and confirms shipping address and
order quantity/items.

 Customer chooses whether the item(s) to be

shipped will be considered gifts for gift
options (wrapping, card, etc.)
 Payment method
• Choose payment method.
• Enter CC number, exp. date, and
cardholders’ name (if applicable).
• Enter code if you have a gift certificate or
promotional claim offer.
• Choose and verify a new user password.
 Order Confirmation/Conclusion
• Since we weren’t able to get any further
without actually purchasing an item, this is
where our presentation stops. But,
presumably, all that’s left is order
confirmation and verification.
Processing a Payment Card Order
Retail Success Factors

• Combining multiple factors to achieve success

 Low
What factors or activities define Amazon’s business ? Less real inventory
estate
Unlimited
Wholesale
virtual
relations Less
shelfspace
Employees
Large Cross High Co-
Selection Marketing Advertising Branding
Low
Publisher 1st Overhead
Relations mover

Convenience Brand
& Share of Large Customer Cost
Superior
Ease of use Mind Database Structure
service
reps

Add useful Always

High Easy information open
Customer Search Always Low
Service there Price
Customize
No hassle
E-mail return Washington
confirm Innovative
State
Technology
Graphic courtesy of the Kellogg School,
NWU
 What factors or activities define Amazon’s business ?

Large
Selection Low
Overhead

Convenience Brand
& Share of Large Customer Cost
Ease of use Mind Database Structure

High
Customer
Service Customize

Low
Customer
Price
Loyalty
Graphic courtesy of the Kellogg School,
NWU
 High Performance Service

 Web site is fast, reliable, and easy to use

 Shipping is prompt
 Customer is kept informed
Networking
 Referral program
 Co-branding and cross promotion
 Community
 Posting customer reviews with author reviews
 Customer gifts like bookmarks, note pads, cups,
etc.
 Promotion where customers collaborate with
famous authors
Personalization
 Extensive customer profiles
 Recommendations
 Other readers who bought this title also bought
 Other readers who bought this author also bought
 Trust

 Guarantees
 Return policy
 Great customer service
Logistics
 Fast, reliable, inexpensive shipping
 Originally no inventory, use Ingram
 Amazon web services for buyers

 Creation of an associate web-site that provides

access to Amazon products. Transactions passing
through the site are tagged with the Associate ID,
allowing the associate to earn referral fees.
 Operations (atomic processes) support:
 Product and Catalogue data search
 Getting transaction information
 Purchasing (shopping cart)
 Amazon web-services for sellers

 A third-party bookshop can offer inventory for

sale with Amazon (zShops) or participate in the
Amazon Marketplace (matching buying offers).
 Operations (atomic processes) support:
 Inventory management
 Retrieving order information
 Submitting refunds
 Logistics
 Acquisitions
Acquisitions:

Bookpages (April 1998, Amazon.co.uk)

Telebuch (Telebook) Inc. (April 1998, Amazon.co.de)

Paid $200M to acquire e-Niche, Inc., Music Find,

Accept.com, and Alexia Internet Company (1999)

Introduced zShops; Amazon.com’s online mall (1999)

 Partnerships
Bought 46% of Drugstore.com (1999)
Bought 50% of Pets.com (1999)
Gained a 1.7% stake in Sotheby’s Holdings and formed
a joint online auction site (1999,
sothebys.amazon.com)
Bought 35% of Homegrocer.com (1999)
Bought 49% of Gear.com (1999)
Offered a co-branded credit card with Nextcard (1999)
Annouched plans to open a Target store at
www.amazon.com (2001)
Others partnered with: BabiesRUS, ToysRUS, and
Borders Group (2001)
 Differences Amazon.com
Amazon.com
Amazon.com BarnesandNoble.com
BarnesandNoble.com
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for
 Upon adding items to your cart, the
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 B2C Electronic Marketing
Customers can order from cyberstores 24
hours a day, 7 days a week from any
place in the world
• Direct marketing
suitable for well established brands and
heavy traffic sites
Eg. Dell, Amazon
 Electronic Distributor Vs. Electronic Broker
• Distributor
 Electronic intermediary responsible for order fulfillment and guarantee
 e.g. Amazon,
 Electronic shopping malls – Intermediary Sites
(Link the site to well known electronic directories)
• Electronic Distributor
Mall takes responsibility of order fulfillment
e.g. Amazon
• Specialized Electronic Distributors
Cyber Bookstores
Amazon, Barnes and Noble
scope of titles, price competitiveness, books
information and recommendations, relationship
marketing support.
Provide Web self-service
 activities conducted by users on the Web to find
answers to their questions (e.g., tracking) or for
product configuration
 can be used with customers, employees and other
business partners.
 Self Service Tools
Self-Tracking
customers can find status of order e.g.. Amazon
 Barriers to Global EC using CAGE
Framework
• Order fulfilment and delivery
Even companies like Amazon have to add physical
warehouses in order to expedite deliveries and reduce
order fulfilment costs.
Frequently customised orders and inability to
accurately forecast demand.
Smaller orders need to be delivered to the customer
doorstep.
Shipments of wrong products, materials and parts
occur frequently.
Improver inventory levels are typical in EC.
Variable Delivery times
 Online Purchase-Decision
Aids
• Other Shopper Tools
Amazon.com’s A9 Search Engine
Remembers information
A user can make notes about any Web page and
search them
Offers a new way to store and organize
bookmarks
Recommends new sites and favorite old sites
specifically for the user to visit
 Creating or Adding an online
project
• The general processes of most new businesses whether
brick and mortar, pure online, click and mortar are:

Identify a consumer or business need

Based on a simple idea
Source : magazine article, personal observation,
unsolved problem, gap between people want and
available, somebody’s suggestion
e.g. Amazon, Air Asia, E-Bay, Facebook,
Wikipedia
 B2C companies performing mass
customization
 Dell
 Levi Strauss
 Ford
 Amazon.com
 Web Advertising
 Classified ads  Content sponsorship
 Banners  Web site as
 Buttons advertisement
 Chat  Push technology
 Associates programs
 Paid hyperlinks
 Pricing Online Ads
• CPT--Cost Per Transaction
Pay only when the advertisement concludes in a sale
Higher commissions
Examples:
Amazon.com
Barnes and Noble
Microsoft
 The Process of Electronic
Shopping
 A user gains access to an online service
 Customer service is established. Product
or the internet and goes to a merchant’s
Web site. He may know the address, find it
in another Web site (refer to it by a search
engine), or find it by browsing.
 The user enters the merchant’s storefront
and goes to the product displays.
 If the user does not find anything of
interest, or want to do more shopping he or
she may browse some additional merchant
storefronts to search for the desired
products or services.
 When the user does find something of
interest, he or she may elect to purchase it
online. To finalize the decision, the user
may need more information that can be
found on the Web pages or obtained by e-
mail.
 The item is typically stored in a shopping
cart. This allows the user to continue looking
through this store, or even to visit other
merchants, before paying for the items.
may be returned or exchanged, for example
maintenance information may be found on
the Web site as needed.
 Shipment is made, if needed, or
permission to download products from the
Internet is granted. Warranty is established.
 The payment authorization is either
approved or denied. If denied, the user is
prompted for another form of payment .If
approved, the transaction is executed.
 When the user is ready to pay he is
advised about the payment options the user
makes a section and provides payment
information (e.g., the credit care number)
 At any time, the user can review the
items in the shopping cart and change
quantities or delete items, This review
continues until a final selection is made.
 Websites with Shopping Carts
 Amazon.com
 BarnesandNoble.com
 Yahoo.com
 BestBuy.com
 Process Model for Amazon.com
Shop=
• Process Model allows three Browse+Manage Account
operations:
Browse: Allows the user to
look for books available at Browse Manage
Amazon Account
Manage Account: check content
of the shopping cart, add
and remove products
Shop: a sequence of the
previous two. First browse
to find the product, the put
it in the shopping basket
Company Structure
 Strategies for Growth and Managing
the Implications of Growth
• Opportunities and Growth
Strategies
1. Penetration Strategies
2. Market Development Strategies
3. Product Development Strategies
4. Diversification Strategies
- Example:-
 Competitive Profile Matrix
Amazon. COM Barnes & Nobles eBay

Critical Success Factors Weight Rating Weighted Rating Weighted Rating Weighted
Score Score Score

Market Share 0.05 4 0.20 3 0.15 4 0.20

Price 0.10 4 0.40 3 0.30 4 0.40
Financial Position 0.15 2 0.30 4 0.60 3 0.45
Product Quality 0.10 3 0.30 3 0.30 3 0.30
Consumer Loyalty 0.10 4 0.40 3 0.30 4 0.40
Global expansion 0.15 4 0.60 3 0.45 4 0.60
Advertising 0.15 4 0.60 3 0.45 4 0.60
Software technology 0.05 4 0.20 3 0.15 3 0.15
Management 0.10 4 0.40 4 0.40 4 0.40
e-commerce expertise 0.05 4 0.20 3 0.15 4 0.20

Total 1.00 3.60 3.25 3.70

SWOT ANALYSIS
 Strengths

• 1. Strong management team

• 2. Strong customer service support
• 3. Up-to-date technology and software
• 4. High brand name recognition
• 5. Corporate culture
• 6. Distribution centers
• 7. Strategic alliances
• 8. Increased revenue from international segment
• 9. High inventory turnover
 Weaknesses

1. Accumulated deficit of $3 billion

2. Operating losses
3. Interest payments on debt issued
4. High inventory risk - seasonality
5. Small number of vendors (suppliers)
6. Breach of customer confidential information
 Opportunities
1. Pressure to permanently ban the Internet Tax
2. State of the economy is improving
3. Customer spending increased
4. Currency fluctuation (weak dollar)
5. Increased number of Internet users in the US
6. Broadband access technology
7. Increased number of Internet users worldwide
8. Online sales predicted to increase
9. Low interest rate
10. One European currency - Euro
 Threats
• 1. Taxes imposed for EU customers
• 2. Unemployment level highest sine 1994
• 3. Currency fluctuation
• 4. Failure to permanently ban Internet taxes
• 5. Aggressive competition
• 6. Identity theft
• 7. Terrorist attack, war
• 8. State of the economy, high inflation
• 9. Volatile stock market
• 10. High interest rate
• 11. Ease of entry into market
 Thank you!
• Questions?
• Comments?