Amazon Case

Amazon.com INC Presented to: Mr. Zaffar Manan

Amazon.com Earths Biggest Book Store CEO and Founder Jeff Bezos Internet based companies (Yahoo, Google) Named After the mightiest river in the world Fast Becoming worlds Biggest anything Store

Strengths Large customer database. Worlds Biggest Book Store. Efficient Web Browsing. Amazon has proven themselves to be the most successful retailer online. Enables customers to compare prices across different products being sold by amazon. Product Offering is easily understandable. Customized home pages for website Members. Effective promotions and advertisements. Expansion has propelled Amazon.com in innumerable directions.

Weaknesses Lack of business skills in all products being sold . Purchasing items from distributors rather than manufacturers. A huge need of adding values to the online shopping experience (aesthetics needs). More browsers than buyers. Fear of competition is high as there are low barriers to market entry.

Opportunities Market size is growing. More things can be easily sold on the internet. More people are willing to buy online. Number of women internet users are growing. Increasing availability of other access channels is providing more opportunities for customers to shop online. Increase in acceptance of E-Commerce. Growth in consumer to consumer auctions.

Threats High competition from direct and indirect sources. New entry barriers in the industry. High Taxation possibilities Customer might shop at partner's website for the next purchase after the first shopping at Amazon. Threat that retailers will draw back the partnership at the end of the alliance agreement. Some retailers may get jealous if Amazon promotes one company more than another. Customers still prefer try-and-buy shopping habits for clothing.

WT strategies ST strategies T H R E A T WO strategies SO strategies O P P O R T U N I T Y WEAKNESS STRENGTHS

Internal Factor Evaluation Matrix IFE Matrix

IFE Strengths .20 4 .05 Effective promotions and advertisements. 8 .15 3 . 05 Expansion has propelled Amazon.com in innumerable directions. 9 2.00 .55 .15 3 .05 Customized home pages for website Members. 7 .15 3 .05 Product Offering is easily understandable. 6 .20 4 .05 Enables customers to compare prices across different products being sold by Amazon 5 .15 3 .05 Amazon has proven themselves to be the most successful retailer online 4 .20 4 .05 Efficient Web Browsing 3 .40 4 .10 Worlds Biggest Book Store 2 .40 4 .10 Large customer database. 1 Strengths TWS Rated Weighted INTERNAL FACTORS

IFE Weakness .65 .45 2.65 1.00 TOTAL (ST + WK) .20 1 .05 Fear of competition is high as there are low barriers to market entry 5 .10 2 .05 More browsers than buyers 4 .20 2 .10 A huge need of adding values to the online shopping experience (aesthetics needs). 3 .05 1 .05 Purchasing items from distributors rather than manufacturers 2 .10 2 .05 Lack of business skills in all products being sold 1 Weakness TWS Rated Weighted INTERNAL FACTORS

External Factor Evaluation Matrix EFE Matrix

EFE Strengths .55 .15 .05 Growth in consumer to consumer auctions 7 .15 .05 Increase in acceptance of E-Commerce 6 .20 .05 Increasing availability of other access channels is providing more opportunities for customers to shop online 5 .15 .05 Number of women internet users are growing 4 .20 .05 More people are willing to buy online 3 .40 .15 More things can be easily sold on the internet 2 .40 .10 Market size is growing. 1 Opportunities TWS Rated Weighted EXTERNAL FACTORS

EFE Weakness . Some retailers may get jealous if Amazon promotes one company more than another 6 Customers still prefer try-and-buy shopping habits for clothing 7 .65 .45 2.65 1.00 TOTAL (ST + WK) .40 2 .20 Threat that retailers will draw back the partnership at the end of the alliance agreement 5 .10 2 .05 Customer might shop at partner's website for the next purchase after the first shopping at Amazon 4 .20 2 .10 High Taxation possibilities 3 .05 1 .05 New entry barriers in the industry 2 .10 2 .05 High competition from direct and indirect sources 1 Threats TWS Rated Weighted EXTERNAL FACTORS

Strategic position and Action Evaluation Matrix SPACE Matrix

SPACE MATRIX: 5 Average 35 Total 4 5 4 5 6 6 5 FINANCIAL STRENGTHS

SPACE MATRIX: -2.33 Average -14 Total -2 -1 -1 -4 -5 -1 RATES COMPETITIVE ANALYSIS

SPACE MATRIX: -3.20 Average - 16 Total 2 3 3 4 - 4 RATES ENVIRONMENTAL STABILITY

SPACE MATRIX: 3.80 Average 19 Total 2 4 4 5 4 RATES INDUSTRY STRENGTH

SPACE MATRIX: X-Axis : IS + (-CA) = 3.8 + (-2.33) = 1.47 Y-Axis : FS + (-ES) = 5.0 + (-3.20) = 1.80

SPACE MATRIX I S C A F S E S Aggressive

SPACE Matrix: STRATEGIES TO BE PURSUED Intensive Strategies Integrative Strategies Conglomerate Diversification Concentric Diversification Horizontal Diversification Combination

Amazon Growth Source : www.iwishiknew.com 15.4% 1-Year Employee Growth 9,000 2004 Employees 1,567.1% 1-Year Net Income Growth $588.5 2004 Net Income (mil.) 31.5% 1-Year Sales Growth $6,921.1 2004 Sales (mil.) December Fiscal Year-End

Boston Consulting Group Matrix BCG Matrix

BCG Matrix Growth Rate Relative Market Share Low 0.0 High 1.0 Medium 0.5 High +20 Low -20 Medium 0 Question Mark “?” Star “*” Cash Cows Dogs

Grand Strategy Matrix Rapid Market Growth Quadrant II Quadrant I Weak Strong Competitive Competitive Position Position Quadrant III Quadrant IV Slow Market Growth

Strategies From Grand Strategy Matrix Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Concentric Diversification

IE MATRIX: 2.2 1.8 Others 2.65 Amazon.com EFE IFE DIVISIONS

1.0 1.0 2.0 2.0 3.0 3.0 4.0 LOW WEAK MEDIUM HIGH AVERAGE STRONG EFE SCORES IFE SCORES Build & Grow IE - Matrix

Quantitative Strategic Planning Matrix

Amazon Case

More Related Content

What's hot

Similar to Amazon Case

Recently uploaded

Amazon Case