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Amazon.com , inc

Amazon.com , inc. Nick Romjue. The Catalog & mail order house industry. Industry History. Industry Founded : 1498 Aldus Manutius Apple: 1976 eBay: 1995 Amazon: 1994 Barnes & Noble: 1886. Industry information.

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Amazon.com , inc

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  1. Amazon.com,inc Nick Romjue

  2. The Catalog & mail order house industry

  3. Industry History • Industry Founded: 1498 • Aldus Manutius • Apple: 1976 • eBay: 1995 • Amazon: 1994 • Barnes & Noble: 1886

  4. Industry information • Comprised of companies that sell products through “non-store” channels, including catalogs, online sales, television, and radio • Products and services are delivered through the mail • Companies in this industry typically have low levels of inventory and commonly act as the “middle-man” in sales transactions • Traditionally, the industry was built around delivering physical catalogs to the hands of consumers • Success has been built around customers’ preference to shop from home

  5. Industry Trends • Shifting away from brick & mortar and towards eCommerce • Providing the entire catalog electronically, rather than by ground mail • Shift from tangible goods to intangible goods • Focus on vertical integration to streamline the entire transaction process • 8 companies own 80% of eCommerce

  6. Industry Cash Flow Analysis

  7. SWOT for industry as a whole

  8. Strengths • Accessibility • 24/7 • Anywhere • Minimal physical space • Large selection • Limitless Customer Outreach • Low Inventory Requirements • Virtual Marketplace Hosting

  9. Weaknesses • Price competitive with other sites • Ease of competitor entry • Constant technology reinvestment • Supplier uncertainty

  10. Opportunities • Further International Expansion • Integration/merger • Expand Service Offerings via web and mobile offers • Ease of usability • Partnerships

  11. Threats • Technological Innovation • Cyber-attack/data theft • Lawsuit related to sensitive data • Technological Obsolescence

  12. Amazon history • Founded by Jeff Bezos in Seattle, WA in 1994 • Launched in July 1995 as an online bookstore, quickly adding more products • IPO in 1997 at $18/share, currently trading at $397.54 • Bezos employed the “slow-growth” model for Amazon • First year showing a profit was not until 2001

  13. Current business profile • Four primary customer sets: consumers, sellers, enterprisers, and content creators • Enable sellers to list products on amazon.com for a fee • Aim to offer lowest possible prices through both product pricing and shipping offers via Amazon Prime • Manufacture and sell Kindle devices • Allow authors and independent publishers to put their books on an online platform through Kindle Direct Publishing • Offer services ranging from advertising to co-branded credit card agreements • Amazon Web Services provides access to technological infrastructure for companies of all sizes

  14. SWOT for Amazon

  15. Strengths • Brand name • Efficient distribution chain/logistics • Huge range of products/services • Built in cost leadership • Superior technological skills

  16. Weaknesses • Extremely small margins • High shipping costs • No physical presence • Seasonality • Unreliable sellers

  17. Opportunities • Further International Expansion • Acquisitions and mergers • Amazon brand products • New shipping strategies • Payment system similar to PayPal

  18. Threats • Government regulations abroad • Lawsuits • Technological Obsolescence • Foreign exchange risk • Potential increased tax liabilities • Payment-related risk • Competition

  19. Porter’s five forces

  20. Fun facts • Amazon was almost named Cadabra, but it was changed because their lawyer misheard it as Cadaver • The name Amazon was chosen to suggest scale (the Amazon Rain Forest is massive) and because when it was founded, website listings were usually alphabetical • Every Amazon employee spends two days per year working the customer service desk, even the CEO • You can bring your dog to work • They once sold a CD for $3 billion • They’re currently making a 10,000 year clock • The current logo is supposed to depict a smile from A to Z

  21. Questions?

  22. Bibliography • http://amazon.com • http://business.highbeam.com/industry-reports/retail/catalog-mail-order-houses • http://jobsearchtech.about.com/od/companyprofiles/a/Amazon.htm • http://www.businessinsider.com/10-mind-blowing-facts-about-amazoncom-2013-3?op=1

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