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AMAZON.COM THROUGH THE
YEARS
The
name,

itself

is

the

company

, representing that they could
and also customer
satisfaction, as it forms a smile.
“Our vision is to be
; to build a place where people
can come to find and discover anything they
might want to buy online.”
is an
based in

in
launched in 1995

.

by

, and
has since
in

separate
Since

ing

out

in his
in
, Jeff Bezos has gone on
to form one of the greatest ecommerce sites the
internet has every seen.
Bezos incorporates his company under
“Cadabra.com”
Amazon.com
launches and officially
goes live as an Online
Bookstore
introduces 1-ClickTM, allowing customers to make
purchases online with one click.
- First International Sites are launched Amazon.co.uk
(UK) and Amazon.de (Germany)
Opens
Amazon.com
Auctions is launched
Opens Kitchen Store
Toys “R” Us and Amazon.com join alliances
Opens

Store
December
Opens Health &
Personal Care Store
- Amazon
Amazon.com

.

on Amazon.com
Amazon introduces
Launches

for a

.
2006- *July
Amazon.com
launches Grocery
Store
*August

Amazon.com
launches Jewelry &
Watches stores
internationally
Amazon

for $300 million
Amazon announces
of
August
Amazon acquires
AbeBooks.com
Introduces
August
Amazon.com
launches free
shopping
application for
Android.
Amazon.com announces
and
for
Amazon

for
. Amazon
Amazon.com announces Third Quarter Sales up
44% to $10.88 Billion
Amazon introduces The Kindle Owners’ Lending
Library
Launches
Store
Amazon.com agrees to
for a reported
Amazon Publishing
Acquires Avalon
Books
**
**
**INNOVATIONS**
(AWS) is a collection of
remote computing services
(also called web services)
that together make up a
cloud computing platform.
e-book readers designed
and marketed by
Amazon.com.
* North America and International Retail
* Sell Services
* E-commerce Platform
* Worldwide Operations and Customer Service
* Amazon Web Services
* Digital
* Finance and Administration
* Human Resources
* Legal
* Health Care
* Time off
* Savings Plan
* Employee Stock
* Relocation Assistance
STRATEGIES
Using a customer-friendly interface.
Scaling easily from small to large.
Exploiting its affiliate’s products and resources.
Using existing communication systems.
Utilizing universal behaviors and mentalities
1)

Continual Website Improvement (Process)
2)

Stream-lined Ordering Processes
3)

Partnerships and Web-Services (Process)
4)

Affiliate Marketing (Place)
5)

Customer’s Opinion (People/Physical Evidence)
6)

E-mail Marketing (People/Promotion)
7)

High Customer Service (People)
Accenture and AWS
Adobe and AWS
CA and AWS
Capgemini and AWS
Citrix and AWS
ESRI and AWS
Facebook and AWS
Microsoft and AWS
SUSE and AWS
Force.com toolkit for
Amazon web services
IBM and AWS
Oracle and AWS
Red Hat Enterprise
Linux on Amazon
EC2
SAP and AWS
Symantec and AWS
ADVERTISING
Amazon in its early days spent
heavily on advertising during the
dot-com boom. In 1999, it spent
$37
million
on
advertising, according to TNS
Media Intelligence. It soon began
cutting ad spending to steer that
money into customer lures like
free service. In 2007, it spent just
$1.5
million
on
advertising,
according
to
Nielsen. In 2008, that jumped
to $4 million.
1. Ebay
2. Target
3. Walmart
4. Overstock.com
5. Barnes and Noble
6. Apple (Media)
7. Samsung ( Media)
8. Netflix ( Media)
9. Staple
1. Alibaba.com
2. Google
3. Brick and mortar store
4. Youtube
5. Gaming websites
Figure 1
The table shows how Amazon outperformed other companies
when it comes to customer satisfaction as assessed by the American
Customer Satisfaction Index .
Figure 2
The table shows the total earnings each commercial website gains
per viewer.
also known as
Distribution Channel
is a set of
interdependent
organizations
participating in the
process of making
a product or
service
available for use
or consumption.
a system of partnership and
alliances that a firm creates to
source, augment and deliver
it’s offerings.
It serves as an agent
that
searches
for
customers
and
negotiate
on
the
producer’s behalf but do
not take title to the goods,
they also utilize pull-pull
strategy and undergoes
physical flow in distributing
the products.
Gather information
about potential and
current
customers, competit
ors and other actors
and forces in the
marketing environment.
Develop and
disseminate
persuasive
communication
s to stimulate
purchasing.
Negotiate and
reach agreements
on price and other
terms so that transfer
of ownership or
possession can be
affected.
Place
orders with
manufacturers
.
Acquire funds
to finance
inventories at
different levels in
the marketing
channel.
Assume risks
connected
with
carrying out
channel work.
Provide for the
successive
storage and
movement of
physical products.
Provide for
buyers’ payment
of their bills
through banks and
other financial
institutions.
Oversee
actual transfer
of ownership
from one
organization or
person to another.
1. Gather information about potential and current customers, competitors and
other actors and forces
2. Develop and disseminate persuasive communications
3. Negotiate and reach agreements
4. Place orders
5. Acquire funds to finance inventories
6. Risks connected with carrying out channel work.
7. Provide for the successive storage
8. Provide for buyers’ payment of their bills

9. Oversee actual transfer of ownership
Amazon is a non-store retailer which uses
direct marketing.
Amazon offers a very broad breadth
and depth of products to the market.
1. We
at
2.

that are
.
distinctive

merchandise

3. We feature
4.

We

5. We offer
6. We offer

feature
.

.
Getting the right goods to the right places
at the right time for the least cost.
Amazon uses integrated logistics system
(ILS) , which include materials management ,
material flow systems and physical distribution aided
by information technology.
Fulfillment
by
Amazon
(FBA) enables merchants to
store inventory and fulfill
orders from an Amazon.com
fulfillment center.
Amazon offers warehousing
and order-fulfillment for third
party sellers including large
companies such as Target
Corporation.
for holding
1. Customer’s
for holding
2. To
for holding

3. To take

of
for holding

4. To

uncertainties of

and
for holding

5.

able
for holding

6.

in
AMAZON utilizes
Containerization which consists of putting goods
in boxes or trailers that are easy to transfer
between two transportation modes.
*Airtruck : combination of air and trucks.
Shipping & Delivery
Amazon.com gladly accepts orders from all around the
globe. The customer can check the shipping rates and
times specifically of his order and time to delivery.
Amazon works with UPS International post service.
Amazon’s shipment fee and duration:
**Shipping Rates to Asia & Pacific Islands
Your total shipping cost is calculated by adding the "Per Shipment" cost and the
"Per Item" cost. If the "Per Item" cost is listed in terms of price per pound, you
can check the weight on the item's detail page.

Destination Country

Philippines

Standard Shipping (business

Expedited Shipping

days)

(business days)

18 to 26

5 to 10

Priority Shipping

3 to 6
“AMAZON TODAY”
From :
To it’s HQ in seattle today :
North America segment sales, representing the Company’s
U.S. and Canadian sites, were $7.21 billion, up 45%
from fourth quarter 2009.
International segment sales, representing the Company’s U.K.,
German, Japanese, French, Chinese and new
Italian sites, were $5.74 billion, up 26% from fourth
quarter 2009. Excluding the unfavorable impact from
year-over-year changes in foreign exchange rates throughout
the quarter, sales grew 29%.
Amazon has come a long way since it launched in 1995
* Over 76 million active user accounts and
active seller customers as of today.

1.3
Amazon employs tens of
thousands around the world.
Headquarters
in
Seattle,
Washington,
USA, we also have offices,
fulfillment centers, customer
service centers, data centers,
and software development
centers
around
the
globe.
COUNTRY

HQ

FC

DC

CSC

US

1

14

6

3

2

2

1

CANADA

FRANCE

1

7

2

GERMANY

2

7

2

IRELANDS

1

1

1

UK

2

8

CHINA

1

8

INDIA

JAPAN

2

1

3

1

6

2

2

1
1. Only online presence

2. Selling at zero margins
3. Free shipping can cause profit loss.
4. Markets who are not reached by the
internet.
1. Online
2.
3.
4. Open
countries.
5. Physical
6. Very
7. Brand

System
more of its
and services
and product portfolio
in other
WEAKNESSES
1. Only online presence

2. Selling at zero margins
3. Free shipping can cause profit loss.
4. Markets who are not reached by the
internet.
1. Cost leadership
strategy
2. Superior quality
services and products.
3. Strategic
acquisitions
4. Efficient
distribution &
logistics
5. Economies of
Scope

6. Low Prices
7. Innovative new
offerings
8. Ease of
Shopping

9. Huge global brand
TOWS
THREATHS

OPPORTUNITIES

1. Online Security

1. Online Payment System

2. Legislation against tax avoidance

2. Release more of its own brand
products and services

3. Regional lowcost online retailers
4. Increasing transportation cost
5. HIgh delivery time and cost
6. Possible difficulty in segmenting
ang targeting

3. Increase services and product
portfolio through acquisitions
4. Open more online stores in other
countries.
5. Physical presence
6. Very large market segment
7. Brand loyal customers

WEAKNESSES

STRENGTHS

1. Only online presence

2. Selling at zero margins

1. Cost leadership strategy

3. Free shipping can cause profit loss.

2. Superior quality services and
products.

4. Markets who are not reached by
the internet.

3. Strategic acquisitions
4. Efficient distribution & logistics
5. Economies of Scope

6. Low Prices
7. Innovative new offerings
8. Ease of Shopping
9. Huge global brand
Whether you are an individual contributor or the
manager of a large team, you are an Amazon
leader. These are our leadership principles and every
Amazonian is guided by these principles.
Leaders start with the
customer and work
backwards.
They
work vigorously to
earn
and
keep
customer
trust.
Although
pay
attention
to
competitors,
they
.
Leaders are owners.
They think long term
and
don’t
sacrifice
long-term
value
for
short-term results. They
act on behalf of the
entire
company, beyond just
their own team. They
never say “that’s not my
job."
Leaders expect and require innovation and
invention from their teams and always find ways to
simplify. They are externally aware, look for new ideas
from everywhere, and are not limited by “not invented here."
Are Right, A Lot
Leaders are right a lot.
They
have
strong
business judgment and
good instincts.
Hire and Develop the Best
Leaders raise
the
performance
bar with every
hire
and
promotion. They
recognize
exceptional
talent,
and
willingly move
them
throughout the
organization.
Leaders are continually raising the bar and
driving their teams to deliver high quality
products, services and processes. Leaders
ensure that defects do not get sent
down the line and that problems are fixed
so they stay fixed.
Thinking small is a selffulfilling prophecy. Leaders
create and communicate a
bold direction that inspires
results.
They
think
differently and look around
corners for ways to serve
customers.
Bias for Action

Speed matters in business. Many
decisions and actions are reversible
and do not need extensive study. We
value calculated risk taking.
Frugality
We try not to spend money
on things that don’t matter
to
customers.
Frugality
breeds
resourcefulness, self-sufficiency,
and invention. There are no extra
points for headcount, budget
size, or fixed expense.
Leaders come forward with problems or information,
even when doing so is awkward or embarrassing. Leaders
benchmark themselves and their teams against the best.
Earn Trust of Others

Leaders
are
sincerely
open-minded,
genuinely listen, and are willing to examine
their strongest convictions with humility.
at
. No task is beneath them.
Have Backbone; Disagree
and Commit

Leaders are obligated to respectfully challenge decisions
when they disagree, even when doing so is uncomfortable or
exhausting. Once a decision is determined, they
commit wholly.
Leaders focus on the key inputs for their business and
deliver them with the right quality and in a timely fashion.
Despite setbacks, they rise to the occasion and never settle.
“WHY INVEST AT AMAZON?”
DID YOU KNOW THAT?
They should evaluate and
study
the
opportunity
offered by opening an outlet
where customers can physically
shop through their products.
Have a 24 hour online live
customer service for those
who experience confusion in
finding the product that they need.
Create strategic segments
and focus targeting on each.
Create an alliance with local
shipment firms.
Create strategies on how to
counteract the possible profit
loss effect of free shipping.
Be more strict in allowing
consumer
to
consumer
transactions to avoid issues and
problems.
Consider other forms of
advertisement for those who
were not easily reached by the
internet.
Reduce unwanted brands and
products.
!

All rights reserved. No part of this
publication may be reproduced, stored in
a retrieval system, or transmitted, in any
form or by any means, electronic,
mechanical, photocopying, recording, or
otherwise, without the prior written
permission of the publisher.
Printed in the Philippines.
Copyright © 2013 Polytechnic
University of the Philippines - SRC.

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