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Video 2017 11 21 195852 - Duration: 11:22.
Hello everyone. Today I'm going to talk about Amazon's business model. My team
has 5 members and my presentation is in 8 parts. Firstly, Value proposition
Amazon is the fast food of retail. It's so easy to buy, a few click in the app
and you are done if you know exactly what you want you can order is in less
than 30 seconds. Save payment options Free fast shipping means less hesitation and less
likelihood of cart abandonment
Back to that free shipping thing
you can have your order at your door often before you've even had a break
in your schedule to get to the store. Their marketing automation recommends addition
for cross-sell before you've even completed your purchase
It's usually risk free because they offer free returns with a free shipping label
tons of reviews to ease concerns of people trying to make big purchase
decisions without a sales rep. Their wide selection makes them the go-to for
nearly everything. Secondly revenue model It was one of the first major
companies to sell goods by internet. Amazon generates revenue primary by
selling books, videos, electronic and kitchen equipment on dometics and
international websites such as Amazon's marketplace. Moreover Amazon's also
generates revenue by Affiliate revenue model. Amazon was one of the first
online businesses to set up an affiliate marketing program.
Thirdly, market opportunity . The company is now increasingly cashing in on its credentials
as an online retail pioneer by selling its expertise to major store groups
there are also opportunities for Amazon to build collaborations with the public sector
In 2004, Amazon's move into the Chinese market by buying China's
biggest online retailer, Joyo.com the deal was reported to be worth around $75m
Next, competitive environment . Amazon has been competing in
competing in multiple front but here is a list of main ones:
At this point the only remaining meaningful retailers for Amazon's from competitive
standpoint in the US is Walmart and Costco. Internationally Alibaba is a huge
competitor to Amazon
Amazon maybe the biggest and busiest ecommerce company in the US but China's Alibaba delivers way more packages.
On Cyber Monday, America's great ecommerce shopping day
Amazon processed 37 million orders.On Singles Day, an annual shopping holiday in China
created by Alibaba itself, Alibaba processed 278 million orders.
Alibaba of course had a much larger customer base
there are about 1.4 billion people living in China compared to 319 million
in the US.
while Amazon ships 3 million packages a day, Alibaba ships 12 million
Amazon is the world's 7th most-visited website, while Taobao, an online shoppng portal owned by Alibaba
is the world's 9th most-visited
Trafic/advertising. In a lot of way when Google and Facebook drive traffic to Amazon
they almost act like "distributor". Cloud Computing
Device and digital content. 6. Amazon Business
Now we will move on to, Competitive Advantage
Amazon has a significant competitive advantage in terms of being able to ship fast and cheap
Brand.According to Forbes, Amazon is #13 in the list of the World's most valuable brands.
It's brand is valued at
over 28 billion dollar. Size and momentum.Amazon's online sales accounted for 31.0%
all US
Prime as a loyalty program. Prime is Genius. According to CNN is now reached
half of American households with 54 million subscribers
The culture at Amazon is performance centric, metrics driven and
customer obsesses. It is a big factor in it's success
Next. Market strategy. Amazon marketing strategy relies on the following six pillars
Offering the widest range of products Using a customer-friendly interface Scaling easily from small to large
Exploiting affiliate products and resources
Using existing communication systems. Utilizing universal behaviours and mentalities
Let's look now at, Organizational development
The figure below illustrates Amazon organizational structure.And finally, Management team
Good managers are essential to any successful organisation
Jeff Bezos founded Amazon.com in 1994 and serves as the company's president
CEO and chairman of the board of directors
Brian Olsavsky became senior vice president and chief financial officer (CFO) at
Amazon in 2015
Since 2014, David Zopolsky has held the positions of senior vice president, general counsel
and secretary of Amazon.com.
Now we'll watch
a video about 12 surprising facts about Amazon
That's all of my presentation. Thank you for listening! <3
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