Amazon Business strategy- A Success Story

Company Presentation highlighting the success story of Amazon.com

1. Business strategy - A success story Company presentation on

2. introduction Amazon.com was incorporated in 1994 by Founder and CEO Jeff Bezos . The domain name “amazon.com” was chosen in order to ensure that the co. name results in alphabetical order. The 2 nd reason being ‘ a place that is exotic and different’ just as the founder had planned for his online store. The first co. to sell goods over internet, started an online book-store and in 15 years, it expanded from one category to 16 main categories which included apparels, health, toys, auto-parts, DVDs, home furnishing, CDs, videos, electronics, etc .

3. history In 1994, Jeff Bezos left his job as the Vice-President of a Wall Street firm and moved to Seattle to lay the blueprint for Amazon. He made a list of the 5 products that could be sold online: compact discs, Computer hardware and software, videos and books. In July 1995, Amazon sold its first book online: Douglas Hofstadter’s Fluid Concepts and Creative Analogies: Computer Models Of the Fundamental Mechanisms of Thought. Within 2months the co. was selling to all 50states of U.S and 45 other countries as well.

4. Vision and mission The 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. All the activities including promotions, marketing campaigns, acquisitions, etc are aligned towards the common vision of the company.

5. Insights that shaped amazon

6. BASIC STRATEGY MORE CUSTOMERS CHANNELS, MORE DISTRIBUTION, LARGER REACH MORE SELLERS LOWER PRICE, LARGER SECTION,GREATER CONVENIENCE

7. HANDLING COMPLAINTS Customer service E-mail chat Telephonic

8. Heavy focus on customer service. Fast returns and replacements. Provides easy interface for customer to register their complaint. All queries and complaints are added immediately. Customer feedback on products and strategies.

9. Layering of brand

10. Seven International Stores of Amazon.com Amazon France, Amazon UK, Amazon Germany, Amazon Canada, Amazon Japan, Amazon China, Amazon US. Reasons : The Mother tongue issue. The currency issue. The shipping issue. The local product issue. National Pride issue. Proper Inventory Control.

11. Customer profiling Walking wounded 1.Some of the current users who are dissatisfied about shipping delays. 2.Customers who faced technical glitch and their cash got locked in. Champion 1.Repeat purchases. 2.Customers who give reviews and ratings to diff services. 3.Early adapters of technology. Missing in action 1. Registered inactive users. 2.Loyal customers of other competitors. 3. Customers who are doubtful towards online payment models. Terrorists 1.Dissatisfied customers spreading opinions through social media sites.

12. Brand plan

13. Brand structure esteem knowledge Always keeping promise. High quality of service. Most popular online retailer. High penetration of brand due to large portfolio. Strong brand identity. Investments in brand building has increased the awareness levels among target market.

14. Target group Demographic segmentation Geographic demonstration For those who have access to internet. When income increases, so does the no. of online purchases. 41% of online shoppers are between the age group of 35-50. Recently increased focus to younger class. Appeals to customers all over the world. Sell digital products where their merchandise sales are difficult.(e-books) Has 7 international websites.

15. Psychographic segmentation Focuses on personalization and customer loyalty. Keep a modern and dynamic image by renovating site design frequently. Quality customer service department to build long-term relationships with customers. Help customers find and recommend things they enjoy, rather than push products. Situation segmentation Most online purchases is done for convenience. Keeps on adding categories for catching every customer and every situation. Sale inducing deals everyday. Low pricing is also an encouraging factor for online purchases.

16. Brand identity

17. Swot analysis Strengths A merica’s largest online retailer. Diversified into product lines other than books to strengthen customer reach. Weakness Late in entering emerging markets like China and India. Threats Foreign exchange fluctuation. Opportunities Increase in online retail sales in the US.

18. Marketing strategy Amazon.com bases its marketing strategy on seven pillars:- It freely offers products and services. It uses a customer-friendly interface. I t scales easily from small to large. Creates awareness for it’s products. Affiliate Program is important in driving visitors. It utilizes universal behaviors and mentalities. It uses existing communication systems.

19. Marketing objective

20. Marketing plan

21. Benefits to employees At Amazon the employees are offered the chance to work with great people on exciting projects with an opportunity for growth. The Amazonians have a life outside of work and need a break every once in a while, that’s why the company provides a full range of benefits, which may vary from location to location .

22. Technology With hundreds of thousands of people sharing their credit card details daily with Amazon, security is a major issue. This is managed by the Netscape Secure Commerce server that Amazon employs store such details.

23. Conclusion As the company began with the letter ‘A’ and settled on the word Amazon as it was the river , the founder considered the biggest in the world as he hoped for his company would one day. Today, Amazon is the World’s Largest Online Retailer , has established separate websites in different countries, has acquired multiple organizations and websites and also offers international shipping .

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