Published on October 25, 2010
Amazon company : www.themegallery.com Amazon company Done by: Maksat Abdyldaev, Orkhan Mirzazada, Aytekin Mammedova, Asli Battal Content : Content Introduction 1. Are you pleased with Amazon's organizational structure as provided in the case? Develop what you feel would be an improved structure. 2. That new areas globally should Amazon strive to enter, or should the company focus more on domestic operations? 3. Develop a marketing strategy for the target market. 4. How much $ is Amazon worth? Do you feel that CEO should place the company up for sell? 5. Outline a strategy that you feel would work for the company in this regard. Introduction : Introduction Amazon.com, Inc. is a United States-based multinational electronic commerce company. Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it online in 1995. Headquartered in Seattle, Washington, it is America's largest online retailer Amazon.com started as an online bookstore, but soon diversified, selling DVDs, CDs, MP3 downloads, computer software, video games, electronics, apparel, furniture, food, and toys. Goals & Objectives : 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. Vision : Vision 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. Mission : Mission The company’s six core values: Customer obsession; Ownership; Bias for action; Frugality; High hiring bar; Innovation The company’s slogan: “Work Hard, Have fun, and make history”. Products&Services : Products&Services Retail: books(the entry point music CD’s, videotapes, DVD’s, software, consumer electronics, kitchen items, tools, lawn and garden items, toys and games, baby products, apparel, sporting goods, gourmet foods, jewelry, watches, healthcare items, beauty products, musical instruments, industrial and scientific supplies, groceries and more. Auctions: Web auctions service Shops: A fixed price marketplace on web Amazon Market place: Customer selling portal Online music store: MP3 downloads without digital Rights Management Amazon Fresh: A grocery service offering perishable and non perishable foods Major Acquisitions : Major Acquisitions April 1998: Internet Movie Database June 1999: Alexa Internet, Accept.com and Exchange.com 2004: Jojo.com-a Chinese e-commerce website which debuted as A9.com March 2005: BookSurge, Mobipocket.com July 2005: Create Space February 2006: Shop Bop May 2007: dpreview.com Competitors : Competitors eBay.com Yahoo.com Buy.com PriceLine.com BN.com Sam’s club EFE Matrix : EFE Matrix Competitive Profile Matrix : Competitive Profile Matrix Internal strengths and weaknesses : Internal strengths and weaknesses STRENGTHS: Strong brand name * Large product selection * Pricing policy with discounts Corporate culture High quality management team Customer service support (Highest score in 2002 American Customer Satisfaction Index) Strong Infrastructure: Effective automated distribution centers in the US and overseas (Competitive Advantage) Developed and upgraded technology: software and hardware Pioneer in the syndicate selling on the Web Two segments: B2C and B2B e-commerce. In the process of building efficiencies of scale WEAKNESSES: Lack of Spanish website version (Latino and Hispanic Americans are the fastest-growing online ethnic group) Low finance performance (high debt level) Risk of introduction of wrong new categories which could damage company’s brand Company’s offered free shipping might affect future financial outcome Certain products (high volume/weight) have high shipping costs which could confront with local offline retailers IFE Matrix : IFE Matrix SWOT Analysis : SWOT Analysis SPACE Matrix : SPACE Matrix * Y axis: - Financial Strength: + 3 - Environmental Stability: - 2 => Y coordinate: + 1 STRATEGY: AGGRESIVE * X axis: - Competitive Advantage: - 1 => X coordinate: + 5 - Industry Strength: + 6 Amazon Key Ratios : Amazon Key Ratios Matrix Analysis : Matrix Analysis QSPM : QSPM Decisions : Decisions Primary: Expanding to emerging Asian Markets Alternative: Introducing new product categories Expanding to Central and South American markets Research and Development to increase the innovation and quality of customer services provided Increasing marketing expenditures in order to reach new population segments and fastest growing trends and tendencies Showing Cost: EPS-EBIT Analysis : Showing Cost: EPS-EBIT Analysis Thank you for your attention!!! : Thank you for your attention!!!