...••• THE HIDDEN EMPIRE Three digital engines to reshape and dominate retail mazon.com Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven’t been compared because 1- sales have not been officially disclosed 2- they haven’t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q2 2012 +29% Market cap $105 bn Customers 152 m Employees 51,300 Annual revenue $48 bn Internet traffic rank 11th Retail brand 1st Paid out $1.2 bn Paid out $775 m Source: Amazon.com, Alexa, Brandz. Market capitalization as of the 5th of November 2012 2 × growth of 1,7 × market cap 4 × # customers 13 × more than 27% more than before before to buy to buy E-commerce market Why? A vision… From 1994, Jeff Bezos knew he could create a retail website...
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...Case Study #4 1. Bezos decisions in how he develops and delivers the Kindle shows both systematic and intuitive thinking by being rational and flexible. Bezos shows systematic thinking by first analyzing what was changing as time moved on. He looked at what reading was turning into and made an idea around that. He states the kindle as being a natural evolution of technology. He also says “Music and video have been digital for a long time, and short-form reading has been digitalized, beginning with the early web. But long-form reading really hasn’t.” So by analyzing this concept he realizes that something new has to be made to bring long text to technology and that with there being no invention out for it already that there was money to be made in that field. This is what helps drives him to make the Kindle. This is what his plan was and he saw he succeeded when he started to sell more kindles than regular books. He also uses good analyzing skills when the iPad started to sell more than the kindle, so he decides to cut the cost of the kindle to keep up with the competition. Cutting the cost of the kindle also falls under intuitive thinking because it was a reaction to losing the war with apple and there tablet so by lowering the cost he created a creative way to stay in the market. Just the thought of adding e books to his market and the Kindle was an imaginative solution to get ahead. Also the addition of magazine subscriptions to the kindle was an example of intuitive thinking...
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...student in order to help you with your studies. UKEssaysEssaysMarketingAmazon Com Case Study Analysis Marketing Essay submit to reddit Amazon Com Case Study Analysis Marketing Essay "We want to be the world's most customers Centric Company. . That we focus increasingly on trying to get the customer experience right. Within that we want to build a place where people can come and discover anything they might want to buy online." (Mellahi & Johnson, 2000). Executive Summary Amazon.com is an American electronic commerce company which has become as a symbol of internet business. It was first founded by Jeff Bezoz in 1995 when he began selling books online and to the date now, Amazon.com is the leading online market worldwide for its books and various other products. It was when the company aimed to be successfully the World's most customer oriented company. Customers can discover various products they wish to buy at reasonable and affordable prices. The strategy used by Jeff drove him to become the online leader of market. The main strategy used was to orient the business towards customers and to be innovative with continuous improvement in online shopping skills. Initially, it was used to be online sale of books and with the use of strategy and innovative approaches the business was expanded its boundary with introduction of various other products like toys, CDs, DVDs, computer software, apparel, furniture and goods etc. Amazon offers a large selection of books and...
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...Amazon.com the Hidden Empire Three digital engines to reshape and dominate retail Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven‟t been compared because 1- sales have not been officially disclosed 2- they haven‟t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q1 2011 +38% Market cap $90 bn Customers 137 m 3 × growth of 2 × market cap 2 × # customers E-commerce market Employees 33,700 Annual revenue $34 bn Internet traffic rank 16th Retail brand 1st Paid out $1.2 bn 15 × more than 16% more than before before to buy Source: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011. Why? A vision… From 1994, Jeff Bezos knew he could create a retail website that would not have the limitations...
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...Case 9 in your textbook * Answer the all of the questions at the end of the case study Case Study – Amazon.com, Inc – Retailing Giant to High-Tech Player? 1. Complete a table on key ratios: * Current Ratio - Current Ratio = CA/CL What the current ratio does measures if the firm has enough resources to pay its debts over the next 12 months. Comparing current assets to current liabilities. Current Assets | Current Liabilities | Cash $10,500 | Accrued Expenses $6,000 | Credit receivables $11,000 | Accounts payable $7,000 | Inventories $15,000 | Taxes Payable $ 12,000 | Prepaid Expenses $16,000 | Current Mortgage $30,000 | Accounts Receivables 7,000 | | Marketable Securities $3,000 | | Total $62,500 | Total $55,000 | $62,000 – $55,000 = $7,000 * ROI% - ROI = NP after taxes/Total Assets Return on investments indicates the returns generated on total assets, and/or the overview profit on investment in percentage form. This formula below is calculated in Du Pont form; ROI = $16,000 / $200,000 = 16% Net Profit =$16,000 / $100,000 =8% Total Assets =$200,000 / $100,000 = 2 times ROI 8% * 2 times = 16% * ROE(%) - ROE = NP after taxes/Shareholder Equity The amount of net income returned as a percentage of shareholders equity. An example would be; ROE = ($18,000 ÷ $100,000) x ($100,000 ÷ $45,000) ROE = 18% x 2.22 ROE = 40% * Net Profit Margins (%) - NPM = NI/Revenue 2. Answer the following questions: ...
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...2014 Case 4: Amazon: One E-Store to Rule Them All 1) The CEO of Amazon.com, Jeff Bezos, effectively employed both intuitive and systematic thinking when he developed the Kindle for sale. Through Bezos’s creative idea in the Kindle, one can see that he makes decisions that seem to be based off of intuitive thinking. With this approach, people make decisions according to their past experiences and gut feelings, as opposed to analyzing all of the facts. Bezos took a risk in the creation of the Kindle going off of his gut feelings that it would be a successful idea. From previous experiences, he knew that “music and video have been digitalized for a long time, and short-form reading has been digitized, beginning with the early Web. But long-form reading really hasn’t”. The company needed a push to rise above their competitor, Apple, and Bezos was able to provide a creative idea that he thought would work based off of things he has experienced. Fortunately for Amazon, his intuitive idea was a success and “Amazon now sells more Kindle books than paperback books”. On the other hand, the development of the Kindle also reveals Bezos’s ability to think systematically. Systematic thinking involves a “rational, step-by-step, analytical” approach to problem solving. Someone who thinks systematically tends to use facts and details to lead him/her to decisions. Also, systematic thinkers often break down problems into smaller issues and attack them one by one. In this case study...
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...Amazon.com the Hidden Empire Three digital engines to reshape and dominate retail Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven‟t been compared because 1- sales have not been officially disclosed 2- they haven‟t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q1 2011 +38% Market cap $90 bn Customers 137 m 3 × growth of 2 × market cap 2 × # customers E-commerce market Employees 33,700 Annual revenue $34 bn Internet traffic rank 16th Retail brand 1st Paid out $1.2 bn 15 × more than 16% more than before before to buy Source: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011. Why? A vision… From 1994, Jeff Bezos knew he could create a retail website that would not have the limitations...
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...Team Project: Strategic Product Review for Kindle Fire HDX GB580: Strategic Management Dr. Ray Kalinski July 15, 2014 Table of Contents Abstract……………………………………………………………………………………. 3 Introduction………………………………………………………………………… …….. 4 Strategy Canvas …….……………………………………………….................................. 5 Buyer Utility Map………….……………………………………………………………… 6 Blocks to Utility…………………………………………………………………………… 7 Removal of Utility…………………………………………………………………………. 9 Three Tiers of Non-Customers for Kindle ………………………………………………... 11 References…………………………………………………………………………………. 14 Appendix A…………………………………………………………………………………17 Appendix B…………………………………………………………………………………18 Abstract In 2004, Amazon decided to enter the market for the e-reader tablet devices with the creation of the Kindle Fire HDX. The initial Kindle Fire HDX proved to be successful as it became the gateway to gaining access to books, articles, and newspapers without having to carry them around. Eventually, the Kindle Fire HDX electronic access started outselling the printed versions of novels, which lead to a revolution of technology. More customers started to become comfortable with online reading and reviewing of their daily newspaper rather than waiting on the delivery person. Other companies such as Apple with the (iPad) and Samsung with the (Galaxy) entered into the tablet competition in 2009. This strategic analysis will be conducted by reviewing the strategy canvas for each of the three companies, the buyer...
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...fortify in the tablet market as new entrants such as Amazon, Samsung, Motorola and Google battle to overrule the already dominant and established Apples, iPad. Jeff Bezos, creator of amazon chose to step out of his area of comfort, away from the online bookstore in attempt to overthrow the tablet industry, he did so an was able to capture half of the non-Apple tablet market. It can be said that Amazon were the one who introduced e-books because of Jeff Bezos innovation and urge to simplify the everyday lives of individuals. Despite the success the Kindle Fire experienced as it entered this market, amazon was moving further away from what they had originally specialized in, and closer to a market which was already established long before they decided to enter. A detailed analysis of Amazons internal and external environment is needed in order to be able to fully understand the condition of the issue and to be able to formulate a successful recommendation that will align with the corporations goals. The internal analysis includes the companies features while the external analysis was conducted using Porters five forces study. The three alternatives that amazon could pursue were: to continue to compete in the tablet market, to step away from this industry and focus on the companies strong areas, and to partner with universities in order to stay close to their comfort zone while still expanding. In the long run, Amazon should work towards satisfying their current consumers...
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...Amazon’s Strategic Positioning. 1.0 Introduction This assignment is to establish Amazon’s strategic positioning in Europe in correlation with value innovations that may have contributed to Amazon’s success from 1995 to 2012. About Amazon Amazon is an eCommerce business based in the U.S and was started back in 1995 selling books, CD’s and other media. However Amazon’s profits were only noted in 2002 and to this day have annual sales equal to or more than $40billion with a customer base of nearly 144 million in purchase accounts and over 2 million market seller accounts. In 1998 Amazon also extended their market to the UK with an agreed takeover of Bookpage.co.uk and has since managed to establish their second biggest and most successful market overseas. Value Innovations. Since reporting profits in 2002 Amazon has invested in innovations that add value to the customer, keeps interest and encourages ease of purchasing. Some innovations that have aided in the success of Amazon tend to allow ease of use and convenience, this combined with special delivery discounts such as “super saver delivery” give customers a better or higher sense of value and satisfaction when purchasing products from Amazon. In 2007 Amazon created an e-book reader that they claim would reduce the need for paper, save the environment and provide the same enthralling experience that a book could deliver in electronic...
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...electronic companies, like Samsung, Sony or Motorola, decided to immediately follow the wave launched by Apple by creating their own tablets. But among the entire followers one is completely different considering its strategy and its core business: Amazon.com. The biggest Internet retailer, which already decided to enter into the market of technological devices by launching an e-reader named “the kindle” in 2007, created in 2011 its own tablet named “the Kindle Fire”. In 2012, while Apple still holds more than the half of the market share in the tablet sector, Amazon.com decided to launch its second generation of Kindle Fire a few weeks before the launch of the third generation of Ipad. And even if amazon.com does not seemed to be, at first sight, a really serious competitor for Apple, like Samsung could be, its innovative strategy could make it the most disruptive concurrent of the Californian Company. That is why we decided to make a study about the strategy used by Amazon to sell its Kindles. The first part will be focused on the history and the culture of Amazon. Then we will move to the study of the global market of tablets in order to identify the key aspects of this new market. And finally our last part will be completely focused on the Amazon.com strategy compared to the one of its biggest competitor: Apple. Part I: Amazon.com a company focused on customer needs Amazon.com was founded in 1993. Jeff Bezos, who was graduated from...
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...‘great passion’, computers, so he abandoned his studies in Physics and got a degree on Computer science and Electrical engineering (Sherman, 2001). After his studies, Jeff Bezos started working for Bankers Trust, and at the age of 26 he became the youngest Vice President of the company (Byers, 2006). When he noticed in 1994 that internet usage was increasing by 2300% a year (Hämäläinen & Saarinen, 2007), he started planning his next step, which was Amazon.com. Amazon made his appearance in 1995 with 3 micro stations in Bezos’ garage (Robinson, 2009) and its activity was to sell books. Today Amazon.com is one of the most preferable internet retail platform, where customers can find DVD’s, CD’s, MP3 downloads, books and toys. According to Economist (2000), Amazon.com is the most visited internet retail platform in USA and one of the top 3 in Germany, UK, France and Japan. The impact of Amazon.com Amazon.com is today the largest electronic retail worldwide (Anon., 2012). According to J. Bezos (Wired Magazine, December, 2011), Amazon is a cultural pioneer which lives to disrupt even its own business. It is recognized by 55% of conscious population, and it is part of today’s Western culture (Spector, 2002). The company spends almost 40% of its income on brand building (Margolis, 1999), and that is why Amazon.com is a trustable and a well-known brand name (Economist, 2000, Marketing, 1999). 70,000 people work today for Amazon, and the company turnover is 48 billion a...
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...Through their online store and using today’s high-tech technology they have shown the world a new form of sales and have become one of today’s biggest online stores. Globalization Amazon.com has taken two steps to ensure it has some breathing room between itself and the burgeoning list of competitors in the e-Book e-Reader marketplace. Amazon.com lowered the price of the bestseller Kindle as well launching the Kindle DX with U.S. and International Wireless now enables readers to wirelessly download content in over 100 countries and territories. The product will be aimed at U.S. Consumers who want the freedom to use their e-readers overseas as well as eager consumers outside the U.S. who have had limited e-reader choices to date Kindle “global edition” is powered by AT&T. Amazon.com was partnering with Sprint as their wireless partner when the first Kindle was launched using “Whisper sync.” AT&T has a network of global partners who come together to provide AT&T customers global cell phone reach. The difference is that Amazon foots the bill for the bandwidth (upfront) used to download books. In the case of downloading newspapers, the cost is passed on to the customers who pay about $10 per month for each newspaper subscription. International customers can...
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...For exclusive use Universidad Adolfo Ibanez (UAI), 2015 N1-710-444 REV: FEBRUARY 7, 2011 BHARAT N. ANAND PETER OLSON The Rand dom Ho ouse Re esponse to the Kindl e e le By early 2010, the internation news med had begun to character y t nal dia n rize book pub blishing as the next e entert tainment ind dustry to be revolutioniz zed by new digital form mats. Amazon announced that n d Christ tmas 2009 had been the fir day ever th its custom rst hat mers had orde ered more ele ectronic versio of ons books for their Kin s ndle reading d devices than p print books.1 Many other companies w were reported to be d ready ying e-readers for an early 2010 launc Most antic s y ch. cipated was Apple Inc.’s iPad, expect ted to chang the terrain of the e-rea ge n ader segment just as the iPhone had r t revolutionize the smartp ed phone marke 2 Worryin et. ngly, prices fo the e-book versions of n or newly publish titles wer at $9.99 or less, hed re, r dropp ping well bel low half the l price of a new hardco list over; public d domain titles (books for w s which copyr right protectio – 70 years after the de on s eath of the au uthor – had e expired) were being offere by e ed some e-vendors fo $0.00.3 Moreover, the ri or ights to electr ronic versions of books pu s ublished befor the re adven of e-books in the 1990s (when publis nt shers first beg to amend their contrac with authors to gan d cts reflect digital edit tions) were i dispute: literary agen and the Authors Gu in nts uild had prot tested...
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...MBA 540 Information Systems Emerging Technology Professor Voight September 11, 2012 For this research assignment we were to focus on emerging technologies for the Internet, within this category I am going to focus on the importance of smart phones and mobile devices. The first cell phone was unveiled in 1983 and has come a long way since then. Cell phones were first given the ability to connect to the Internet in 1999. This is nowhere close to what we think of today when we access the Internet on our phones today. The first smartphone, PalmOne Treo 600, was unveiled in 2003 and was the first successful merger of a cell phone and PDA. Cell phones in our society are more like computers than a phone. Most cell phones today are considered smartphones, and more people than not own a smartphone. Smartphones and mobile devices are changing the way companies conduct business, communicate, and make sales. When discussing smartphones and mobile devices the word apps, short for applications, often comes up. An app is an application, typically a small, specialized program downloaded onto mobile devices. Apps are designed to do any number of specific things, such as calculate tips, GPS navigation, provide entertainment, and many more. For example, Brinks home security systems offer an application that allows users to arm and disarm their alarm system on their device. Craftsman also has an app that allows a mobile user to check if their garage door is open or shut as well as control...
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