...INTRODUCTION: Amazon.com opened for business in July 1995, nobody in that time was optimistic for this brand new business model. People still enjoy the physical store, and skeptical on online shopping. However, with more than a decade efforts, Amazon was named the world’s top brand ahead of common names like Coca-Cola, Microsoft, and so on. Amazon and its online business model had creased more than $34 billion revenue, and equally 80 million people visit Amazon.com every month. In order to achieve greater success, Amazon need to overcome the challengeable external environment, strengthen organization structure, fulfill the product line, and leverage its brand strategy. CURRENT MISSION, GOAL, AND STRATEGY The current mission statement for the Amazon.com is “to be the 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 prices.” Amazon added 13 new fulfillment centers in 2010 and another 15 new center in the 2011 and company is planning to launch cloud technology in 2011 which allowed customers to store and access music. The company believed that in the nearly future this technology could bring the internal strength and competitive advantage for Amazon.com. INTERNAL ANALYSIS: See attached IFEM Amazon.com internally with an IFEM score of 3.25 FINANCE: Amazon is on strong financial position now; online sales reached $9.91 billion...
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...companies to mix a wide variety of investments in a portfolio, if one investment fails then the other’s success make up the difference. Amazon is widely known to use the internet as the sole method for selling extensive selection of goods to its consumers. Amazon has grown from a book seller to a virtual Wall Mart of the Web selling diverse products. Amazon’s growth and diversification of business offers the following advantages: 1. Cost Leadership is pursued by Amazon.com by differentiating itself primarily on the basis of price. Due to this strategy, Amazon.com always makes sure that it offers the same quality products as other companies for a considerably less price. 2. Cost Savings: Amazon’s business strategy has helped it reduce costs associated with operations and staffing. A reduced cost gives increased revenue. 3. Provides current and prospective customers with different design, quality or convenience. Amazon.com always selects a differentiator that is different among the competitor. So, Amazon.com consumers can recognize and differentiate its product. 4. Existing expertise, knowledge and resources in the company is a major advantage when expanding into new activities 5. Provide better risk control through no longer being reliant on a single market or product. 6. In case of unrelated diversification as...
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...chain models are defined we have discussed Amazon.com's supply chain network, inventory segmentation strategies, order sourcing decisions, overall replenishment and fulfillment process flows, intra-warehouse process flows, and transportation policies. This report analyzes the overall Amazon.com supply chain for United States distribution with a specific emphasis on the Media product segment. Amazon.com US Retail Product Segment Books, CDs, and DVDs and magazine subscriptions comprise the media product line at Amazon.com (Amazon.com 2002 Annual Report). Amazon.com began as an online bookseller and its first product line expansions were music and movies. As a result, the Media segment comprises a large percentage of Amazon.com overall revenues. In 2004, Media accounts for 74% of all revenues. Within the US, the Media segment accounts for 67% of all revenues. In dollar terms, the Media segment in the US generated $2.6 billion in revenue in 2004, compared 115 to $3.8 billion generated across all segments in the US (Amazon.com 2004 10-K Report). The pie chart below shows the breakout of revenue percentages by product and service segment. Fig Amazon.com does not provide margin numbers by product segment, so the Media contribution to profit is unknown. JP Morgan estimates that Amazon.com gets 25% gross margins for books and media and 15% for electronics ("US Equity Research: Amazon.com", 2005). Additionally, data regarding important financial metrics such as inventory turnover, free...
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...The Evolution of Amazon.com Between 1995 and 2006, Amazon.com sold its first book and branched out into serving seven countries with fulfillment centers totaling more than nine million square feet of warehouse space (Layton, 2006.) Amazon.com started out with the idea of revolutionizing retail shopping as the world knows it. However, over time, Amazon.com has begun to move away from their original strategy by implementing new programs and services. The people behind Amazon.com are hoping that these new programs and services will help them compete with the biggest names in the industry, such as Google and Microsoft. In this paper we will discuss why Amazon.com is moving away from its original strategy, discuss areas in which Amazon.com is competing with other top companies, address issues with the database, and describe how Amazon.com uses e-business and e-commerce for business to business (B2B) and business to consumer (B2C) transactions. Amazon.com is not moving away from its core competency of being a leading online retailer; they are simply competing with a business strategy to survive. Stretching their wings by evolving into bigger and better services for their consumers is one way to keep up and compete with Google and Microsoft. Amazon’s make-to-order strategy of producing customized products and services is a business strategy to keep them amongst the leaders in online retailing. Their goal is simple, “To be Earth's most customer-centric company where people can...
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...TD5 Group 1 STRATEGY “Amazon.com Case Study” * Question 1: Analyze Amazon.com each year from 2004 to 2006: The case shows Amazon’s strategy from 2004 to 2006. The year 2003 was the introduction of the new Amazon’s strategic plan. Indeed, from 2001 to 2003 Amazon realized negative income and the economic situation of the company was worrying. Because of the sharing price falling sharply, Amazon had to find an alternative to improve the situation. * Year 2004: Amazon.com adopted a new strategy that was based on innovation. They decided to expand their product range to sell others items and to diversify its offer. Moreover they tried to make their products more affordable thanks to discounts (30% on books over $15) and an additional discount was offered to the customer who used the Amazon’s A9 search engine. This strategy allowed them to make more profits and re-launch the company. Then, they acquired Joyo.com that is website in corporation in order to be more international. Besides, they created more internet domains such as .de that is the denomination of the Deutsch Amazon’s website (internationalization). They innovated thanks to A9.com which builds innovative search technologies. Amazon.com diversified its offer by creating two new product categories: beauty and jewellery (75 000 products). There is a large category of prices from cheap to expensive ($13/$93 000). The main objective is to be the single shopping place on the web. The project “Search...
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...Amazon.Com Strayer University Online 1. Examine how at least three (3) growth strategy alternatives utilized by Amazon.com in the global and domestic retail markets influenced profitability, and indicate if the strategies were successful. For the past 18 years, Amazon.com has entered a variety of product categories both domestically and globally. Since 1995, Amazon.com started by selling physical media and has expanded by adding categories such as electronics, toys, baby, tools & hardware, home & garden, apparel, sports & outdoors, jewelry & watches, health & personal care, beauty, shoes & accessories, dry goods, auto parts & accessories, Kindle Devise & Store, and office supplies. Amazon.com first entered the European market in the United Kingdom in 1998 by selling physical media, and has expanded to other nations. As of 2012 year-end, Amazon.com has achieved $61 billion in revenue a far cry of $34.2 billion in revenue just three year prior in 2010. The breakdown of the revenue mix is $34.8 billion in North America and $26.2 billion internationally in 2012. The top three categories in North America as presented by Amazon.com is electronics and other general merchandise, media, and other which “[i]nclude sales from non-retail activities, such as AWS in North America segment, advertising services, and our co-branded credit card agreements in both segments”. Amazon.com objective is “not to discount a small number of products for a limited...
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...Amazon.com Team B Assignment University of Phoenix The evolution of Amazon.com has increased the Internet giant’s footing in the e-commerce world, taking the book retailer from the beginnings of providing a shopping experience above the walk in bookstores of the past. Today, Amazon offers services to thousands of businesses as well as the continued service for both sellers and buyers of many products of music, apparel, movies, toys, pet supplies, and more. Amazon’s strategy has moved the Internet business from retail to competing with Google and Microsoft to offer data and information storage retrievable by uncomplicated software. Amazon’s use of e-business and e-commerce in the B2B and B2C realm continues to add services for businesses to reduce operating costs and increase the subscriber’s efficiency that places Amazon in a position unimaginable 10 years ago. Amazon.com is a business whose sole transactions involve the Internet to some extent. Unlike many traditional department stores, Amazon has no storefront from which to conduct business. Its entire operation operates via e-commerce or e-business. E-commerce is the sale, purchase, or exchange of items, including products and services, over a computer network. E-commerce is similar to e-business, but includes all aspects of a business, including developing customer relationships and collaborative efforts between companies. Amazon uses both e-business and e-commerce in its business dealings to achieve...
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...Business Information Systems BIS/219 August 17, 2010 Xuan Yu In this team paper we will be discussing the strategies of Amazon.com to see whether the Internet icon is moving away from being the number one leader online. We will be showing different areas to see if Amazon.com is using the right strategy to compete with Google and Microsoft. We find the different issues concerning the database and data management with Amazon.com. Finally we will be discussing the uses of e-business and e-commerce for the B2B and B2c. As of January 2010, Amazon.com was considered the largest online retailer in the United States. Amazon was launched in 1995 by its founder Jeff Benzo. Benzo’s original idea was to create an online bookstore. Compared to traditional bookstores or even mail-order systems, an online retailer could carry a far greater quantity of books for sale. Just like most businesses, even the traditional bookstores, Amazon expanded its business past just books and began adding an array of items; ultimately making its way to selling almost anything possible. Stockholders of Amazon.com, knew the turn over would be a rather slow process with the gradual growth of online sales, but none-the-less they would expect a profit. It took Amazon until its fourth year to produce any revenue and finally to hold its ground as an online retailer. This slow progress made Amazon move away from its original concept...
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...Amazon’s ability to offer convenience in shopping, the ease and speed of purchasing, decision making, product selection, pricing discounts, and the reliability of the customer satisfaction these are all directly tied to Amazons many logistical competencies and reputation. Amazon has the capability, through name recognition, to assure customer confidence that they they can provide the product, and that the quality of the product is guaranteed by…Amazon.com. Amazon.com, Incorporated (Amazon) is a multinational electronic commerce organization that resells software, books, products and services. Amazon’s objective is to present the buyer with the opportunity of buying both used, and new products from their Amazon.com website. Amazon’s is the world's largest online retailer in the world with separate websites in several countries. Its corporate headquarters are located in Seattle, Washington, USA. It also provides international shipping to certain countries for some of its products. Amazon.com, Inc. was founded in 1994, and in 1995 the Amazon website first went online as an online bookstore. Amazon soon diversified, and began selling digital video disk (DVD) compact disk (CD) and MPEG-2 Audio Layer III (MP3) downloads, video games, computer software, clothing apparel, furniture, equipment, food products , and toys. Amazon operates primarily in four countries, Germany, the United Kingdom, the United States, and France....
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...customer profitably. Amazon created preferences to enhance the previous shopper’s experience by comparing what the shopper searched for, or already bought, which is called collaborative filtering. I can attest to this, because I am a frequent Amazon shopper. They make it unbelievably convenient and easy to shop there by doing the collaborative filtering. The cons of Amazon’s growth and diversification is Determine the impact if Amazon.com had split up and become a family of brands (for example, “Amazon” for books, “Supertoys” for toys, etc.), each with a different public face but all run by the same parent company. If Amazon.com, had split up and become a family of brands, I believe it would not have cultivated any more business than it already has. The reason for this being, all the marketing strategies would be the same. People may not always be interested in shopping around or different name brands, so why branch off the current product, is a success. Parent companies who do that take a risk in losing profits. Besides Amazon.com being the largest online retailer, it has set standards for online shopping many other retailers try to follow suit. “As with all web applications, the success of...
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...Amazon’s Business Strategy Amazon's Business Strategy The purpose of this essay is to review Amazon’s business strategy. The authors will address if the company is moving away from its core competency of being a leading online retailer. Next is reviewing where Amazon competes with Google and Microsoft and if this strategy is wise. We will address the uses of the Amazon.com database, possible data management issues and the relationship of Amazon’s data, information, and knowledge. We will conclude by describing how Amazon.com uses e-business and e-commerce for B2B and B2C, more commonly known as Business-to-Business and Business-to-Customer. Amazon.com is continuing on with its core competency of being a leading online retailer. The firm prides itself on offing multiple products and rapid delivery. The departments include unlimited instant videos, MP3 and Cloud Players, the Kindle, books, movies, music, games, electronics and computers, home, garden and tools, grocery, health and beauty, toys, children and babies, clothing, shoes and jewelry, sports, outdoors, automotive, and industrial. For each department listed, there are subdivisions within each. Amazon is an online shopping mall offering products of varying types to consumers in a safe retail environment. Amazon continues to expand its merchandise offered to the public and business consumers. Amazon is competing with Google in search engine technologies with its website www.A9.com. This site offers...
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...Case 1 Overview This case takes a look at the life of Amazon.com and the many changes to strategies that have been made over the years. Starting out in his garage, former investment banker, Jeff Bezos, took a risk and decided to start Amazon.com. He looked at factors such as, the annual growth in web usage and also looked at features of the book industry, and decided that Amazon would initially be an online bookstore. Bezos focused on growing his company quickly, and by doing this formulated a winning strategic plan that focused on customer service and creating a culture for the company that was filled with talented and unconventional employees. Starting with these factors in mind resulted in Amazon ultimately becoming the most recognizable Internet retailer in the world. Amazon.com has made many changes to its strategies in order to stay ahead of the curve due to the rapid growth of the Internet. Although it started off strictly selling books and the focus was on becoming the “Earth’s Biggest Bookstore”, overtime Amazon.com began to introduce other products to its site. One of the main objectives of the company was to become the best place to buy, find, and discover any product or service available online. Due to Amazon’s evolving strategy, they became the number one online music and video seller. They also acquired companies in the UK, Germany, Canada, France and many other countries. Overtime, instead of fighting for a place amongst big names such as Barnes & Nobles and...
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...Amazons Business Strategy Christopher Horton INF220: IS Principles Instructor: Jelena Vucetic June 10, 2013 The business or company that I choose to right about is a company that I know very well this is Amazon. I have been shopping with Amazon for the past couple of years now because I find most of their prices best around when it comes to online shopping so this paper will discuss their business strategies and what makes them the top source for online purchases. First off Amazon was first created in 1994 in Seattle, Washington as the worlds biggest bookstore by its founder Jeff Bezos but soon alter this Amazon expanded the products from books to media, toys, electronics, furniture and apparel and today Amazon is Fortune 100 company. Amazon has used the world wide web to its advantage by spending millions dollars and a lot of man hours to find problems, and develop solutions, to enhance the customer’s online experience. By fixing some of these problems the site is easier to navigate through.( Marketing Strategies of Amazon.com.) Amazon has also collaborated with many other partners like Target, Sears Canada, and Timex to name a few. This collaboration with these partners allows Amazon and their partners to expand their sales and business. Amazon host web services that include ecommerce, database, payment and billing, web traffic, and computing, these services allows merchants to sell their products to Amazon’s...
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...April 27, 2015 Kenneth Korbus Innovation Amazon.com was founded on July 6, 1994 by Jeff Bezos in Seattle, Washington. Amazon.com began as an online bookstore, but soon diversified to other areas. Those areas include DVD, CD’s, VHS’s video’s, software, electronic apparel, furniture, food and jewelry. On May 15, 1997, Amazon issued its initial public offering of stock, under the symbol AMZN. In 2005, Amazon.com, announced the creation of Amazon Prime a membership offering free two-day shipping in the United States, for an annual fee. Since its conception, Amazon Prime has grown and more products have been added. Amazon Prime now includes Instant videos, access to free kindle books, music and cloud storage. Prime launched Prime Now, in 2015. “Prime Now offers Prime members free two-hour delivery on tens of thousands of items, or one-hour delivery for a fee of $7.99”. Prime Now is currently available in Dallas, Atlanta and Austin, with more cities to come. Today, Amazon Inc. is the largest Internet based retailer in the United States, Amazon.com also has websites in the following countries Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Netherland, Spain and United Kingdom. Amazon’s CEO Jeff Bezos, states that Amazon is committed to Improving and nurturing their three big ideas Marketplace, Prime and Amazon Web Services to make them even better for customers. Innovation is a strategy that firms use to become more profitable. In order...
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...Page 1 of 27 Page 2 of 27 1. Executive Summary When Amazon.com started its business operations on 16-07-1995, with a few employees packing & shipping boxes of books from a two-car garage in Bellevue, Wash. The company's founder and CEO, Mr. Jeff Bezos used some of his time on the road to write the company's business plan when he was leaving N.Y. City for the Pacific Northwest. On its 15th-anniversary in 2010, Amazon is truly proud to be one of the world largest online retailers, selling everything from musical instruments and sports equipment to household appliances and apparels (Kayla, W. 2010). In our coursework group assignment, we are tasked to study and analyse the strategic management issues of Amazon.com. The case study will base on fourth quarter of 2007 as a current year. We will be evaluating the company's external and internal environments, how the company emerge into the industry by means of its strategies management in dealing with economic, technology & distribution issues and competition. We will also look at the company's vision & mission and it relate to the expansion of its product lines and reach, to increase its revenue and market share, and to understand and consider their possible near-term and long-term objectives that the organization could pursue. Lastly but not least, to out up recommendation for Amazon and conclude it with our learning experiences on BPS module. Page 3 of 27 2. Company Overview Amazon was founded by Mr. Jeff Bezos in 1994...
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