Amazon Case Study

© 2016 MASTERCLASS UNTERNEHMENSFÜHRUNG  ADVANCED SEMINAR “LOGISTICS CASE STUDIES”  DIE KONSTANZER BWL
AMAZON CASE STUDY
Heiko Hasenmaile Matthias Hönig Simon Keller Daniel Marz Mona Milite
Benjamin Nonnenmann Fabian Schmidt Rebecca Spinner David Strohm Mona Werz
Advanced Master Seminar in “Logistic Case Studies”
at the University of Applied Sciences Konstanz
Konstanz August 2016

PROJECT SUMMARY & CONFIDENTIALITY
 This document is the result of a common student project as part of our advanced
Master Seminar in “Logistic Case Studies” at the University of Applied Sciences
Konstanz, Department of Business Administration
 The project conducted by Prof. Dr. Michael C. Hadamitzky, Center of Supply Chain
Management and Logistics comprehends an external analysis of AMAZON.COM -
the pioneer of disruption and digitalization
 The project gave us the opportunity to examine the latest developments in Value
Chain Management and digital innovation
 All sources and quotes were collected according to common citation systems and
rules
 We ensure that we present the work to our best knowledge and belief, of its
originality being and the result of own research and investigations, except as
acknowledged, and has not been submitted, either in part or whole, for a degree at
this or any other University. Formulations and ideas taken from other sources are
cited as such. The work has not been published, yet.
1

TEAM MEMBERS & CONTACT
The Team of the advanced master seminar looks forward to interesting discussions about
our topics
2
Subject Contact
1
Heiko Hasenmaile
Fabian Schmidt
Xing: https://www.xing.com/profile/Heiko_Hasenmaile
Xing: https://www.xing.com/profile/Fabian_Schmidt88
2
Matthias Hönig
Daniel Marz
Xing: https://www.xing.com/profile/Matthias_Hoenig7
Xing: https://www.xing.com/profile/Daniel_Marz2
3
Rebecca Spinner
David Strohm
Xing: https://www.xing.com/profile/Rebecca_Spinner
Xing: https://www.xing.com/profile/David_Strohm2
4
Mona Milite
Mona Werz
Xing: https://www.xing.com/profile/Mona_Milite
Xing: https://www.xing.com/profile/Mona_Werz?sc_o=mxb_p
5
Simon Keller
Benjamin Nonnenmann
Email: SimonMartin.Keller@web.de
Email: benjamin.nonnenmann@hotmail.de

CONTENT
Jeff Bezos - Pioneer in Digital Excellence
Amazon Strategy
Products and Service
Technology and Innovation
Key Findings in Financials
3
1
2
4-17
18-35
36-81
82-103
104-129
3
4
5

Jeff Bezos - Pioneer in Digital Excellence
Heiko Hasenmaile (B.A.) & Fabian Schmidt (B.A.)
Picture: https://inc42.com/wp-content/uploads/2016/04/amazon.jpg
“Entrepreneurs must be willing to be misunderstood
for long periods of time“
4

KEY FINDINGS
 Even as a child, Jeff Bezos displayed a remarkable mechanical aptitude
 Jeff Bezos had the great teachers, but his most important one was his grandfather
 Jeff Bezos’ motto: Get big fast
 Amazon perfectly understood the need to provide the customers exactly what they
want
 His ambition is illimitable – not only related to Amazon. He also wants to reinvent the
media and to draw new limits of the science
Jeff Bezos – a pioneer in digital excellence
5

Birth in
Albuquerque
Degree in Electrical
Engineering and Computer
Science at the university of
Princeton in New Jersey
After his study
graduation he worked
as investment banker
at Bankers Trust and
then at D.E. Shaw
Foundation of
Amazon, as a
book seller
Number 4 on
Forbes‘ list
with a
property of
about 54
billion Dollar
JEFF BEZOS - MILESTONES IN HIS CURRICULUM VITA
Aged 30 years, Jeff Bezos founded AMAZON
6
1986
until 1994
1964
1994
2016
Source: http://www.forbes.com/forbes-400/gallery/jeff-bezos
Stone, Brad (2013) p. 53 seq.
https://www.munzinger.de/search/portrait/Jeff+Bezos/0/23015.html

Jeff Bezos was born on January 12, 1964, in Albuquerque, New Mexico
Jeff Bezos was born on January 12, 1964,
in Albuquerque, New Mexico
Teenage mother: Jacklyn Gise Jorgensen
Biological father: Ted Jorgensen
Jeff‘s mother re-married a Cuban
immigrant, Mike Bezos
Jeff‘s grandfather: regional director of the
Atomic Energy Commission in Albuquerque
“Your education is always yours - once you have it, it cannot be taken away.”
Mike Bezos
7
Source: www.achievement.org/autodoc/page/bez0bio-1
s.wsj.net/public/resources/MWimages/MW-CI377_BezosJ_MD_20140618140824.jpg
MIKE AND JACKLYN BEZOS – FAMILY ROOTS

JEFF BEZOS – FAMILY
According to businessinsider.com Jeff Bezos leaves nothing to chance, even with the
process used to find his wife. He trusts in his analytical skills
Jeff Bezo’s motto: “Life's too short to hang out with people who aren't resourceful.”
Jeff Bezos
Jeff established a process –
the "women flow" – to help him
with a big life goal: finding a
mate
In 1993 Jeff Bezos married his
wife MacKenzie Tuttle, an
American novelist
Jeff and MacKenzie Bezos have four children
Source: www.businessinsider.com/amazon-billionaire-jeff-bezoss-life-story-2013-8?op=1&IR=T
Stone, Brad (2013) p. 29
http://i.huffpost.com/gen/1445117/images/o-AMAZON-CEO-WIFE-MACKENZIE-BEZOS-facebook.jpg
8

Source: http://www.bloomberg.com/news/articles/2015-08-18/jeff-bezos-told-princeton-grads-kindness-matters-more-than-intelligence
http://sz-magazin.sueddeutsche.de/texte/anzeigen/44019/Captain-Future
http://www.achievement.org/achievers/bez0/photos/bez0-006a.gif
JEFF BEZOS – MOST INFLUENTIAL PERSON
Jeff Bezos had the great teachers, but his most important was his grandfather
“Jeff, one day you'll understand that it's harder to be kind than clever.”
Lawrence Preston Gise
Thanks to his
grandfather, Jeff
learned how to
make something
out of nothing. All of
his learning was
done by simply
observing.
Jeff spent his summers on his
grandfather’s ranch. There were
very few resources accessible
from the ranch, forcing them to be
self-sufficient. If something broke,
they fix it themselves. They
repaired tractors, windmills, and
even veterinary care for their
animals. Jeff always observed his
grandfather so that he would be
able to do the same himself.
Jeff hated that his grandmother liked to smoke in the car. Through a few calculations,
he figured out that she was smoking away nine years of her life. The results brought her
to tears. After this incident, his grandfather told him that he would one day understand
that it is harder to be kind than clever
9
Jeff Bezos at his grandfather’s
ranch in Cotulla

Source: Stone, Brad (2013) p. 53 seq.
: http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg Quellen
JEFF BEZOS – “JEFFISMEN”
His maxims were marked as Jeffismen. Few of them exist longer than a decade.
“In any readjustment, person in question should raise the level for the next little higher,
so that the general level of talent pools rises steadily.“
As the orders reached $ 5,000 a day
for the first time and his colleague
Lovejoy wanted to throw a party. But
Bezos immediately shot down the idea.
“We still have many milestones ahead
of us and this is not the way I want to
run this company.“
His employees should work
disquietingly to create a sustainable
company and to decrease the value of
their personal shares
Whoever made the mistake of talking
about his desire for a harmonious
balance between work and family life
was eliminated at the outset
Jeff Bezos
10

JEFF BEZOS – CHARACTERICS
An innovative and polarizing firebrand
„To me Amazon is a story of a brilliant founder who personally drove the vision.“
Eric Schmidt, former Chairman of Google
According to many employees, Jeff
Bezos is a very difficult boss. Despite
his charming laughter and cheerful
appearance, he is known for his
angry outbursts that would leave his
employees terrified
Jeff Bezos is a manager with never
ending ideas who also can become
very irate if they didn’t achieve his
benchmarks
Jeff Bezos communicates very clever
about his company. He often keeps
his thoughts and agenda secret.
Conferences and interviews are a
rarety.
Source: Stone, Brad (2013) p.16 sqq.
www.businessinsider.com/jeff-bezos-inspiring-business-quotes-2013-10?IR=T
11

JEFF BEZOS – VISION
Get big fast
„Jeff is such communicative as clever. He is the typical technical founder, who is
interested in the last detail more than any other person.“
Eric Schmidt, former Chairman of Google
”You can work long, hard and with
your brain, and at Amazon you
cannot choose two out of three.”
With the obsession of an anankastic
personality, he is concentrating on
the costumer satisfaction
Jeff Bezos
The larger the company, the greater the discount, the better the distribution. The
company that realizes this from the starts has a higher chance of succeeding in the
future. This kind of advantage can lead to superior customer service
Source: Stone, Brad (2013) p.13 sqq., p.59
www.wiwo.de/images/amazon-chef-kaempft-gegen-image-als-reiner-buchhaendler/7812328/2-format2101.jpg
Speech Jeff Bezos: https://www.youtube.com/watch?v=YlgkfOr_GLY
12

Source: www.forbes.com/sites/petercohan/2013/09/04/how-you-can-use-the-three-big-ideas-behind-amazons-success/#2b3c134095df
JEFF BEZOS – 3 BIG IDEAS
Amazon's success is based on 3 fundamental ideas
Jeff Bezos
“We've had three big ideas at Amazon that we've stuck with for 18 years, and they're
the reason we're successful: Put the customer first. Invent. And be patient.”
New innovations secure
the long-term existence of
the company
Customer satisfaction is
the top prioritySuccess
Invent
Put the
customer first
Be patient
13

JEFF BEZOS – AWARDS
During his career Jeff Bezos received many awards
„A brand for a company is like a reputation for a person. You earn reputation by trying to
do hard things well.”
1999: Time magazine chose him for Person of the Year
2012: Fortune named him Businessperson of the Year
2012: Bezos was elected to the American Academy of Arts and Sciences.
2014: He was elected at the World Congress of the International Trade Union
Confederation for "Worst head of the World"
2015: Juniper Research chose him number 8 in the Top Tech Leader 2015
2008: One of the America's best leaders selected by U.S. News & World Report
Source: www.achievement.org/autodoc/page/bez0bio-1
Jeff Bezos
14

JEFF BEZOS – PUBLIC RELATIONS
Jeff Bezos is a welcome interviewee in journals
Source: www.achievement.org/achievers/bez0/large/bez0-004.jpg
http://www.achievement.org/achievers/bez0/large/bez0-008.jpg
http://blogs-images.forbes.com/georgeanders/files/2014/09/0402_amazon-jeff-bezos-cover-042312_400x52911.jpg
http://www.flashesandflames.com/wp-content/uploads/2015/10/0646covdc.gif
http://static3.uk.businessinsider.com/image/56977fe0e6183e3f798b775b-480/jeff-bezos-fortune-india.jpg
15

JEFF BEZOS - FURTHER PROJECTS
His ambition is illimitable – not only related to Amazon. He also wants to regenerate the
media and to draw new limits of the science
"There'll always be serendipity involved in discovery."
In 2000 he founded his own
aerospace company Blue Origin
August 2013, in a really surprising
deal for the media industry, he bought
The Washington Post for $250 million
Project: The 10.000 year clock
Jeff Bezos
Source: Stone, Brad (2013) p.14
www.washingtonpost.com/pb/resources/img/thewashingtonpost-white-2x.png
www.space.com/images/i/000/054/508/original/jeff-bezos-blue-origin-launch-pad.jpg
www.nadernazemi.wordpress.com/tag/clock-of-the-long-now/
16

LIST OF REFERENCES
 Academy of Achievement (2013): Jeff Bezos Biography Founder and CEO, Amazon.com, in:
www.achievement.org/autodoc/page/bez0bio-1, last access 10.06.2016.
 Bloomberg (n.d.): What Jeff Bezos Really Told Princeton Grads About Kindness, in:
http://www.bloomberg.com/news/articles/2015-08-18/jeff-bezos-told-princeton-grads-kindness-matters-more-than-
intelligence, last access 19.06.2016.
 Business Insinder (2013):The Life And Awesomeness Of Jeff Bezos, in: www.businessinsider.com/amazon-billionaire-
jeff-bezoss-life-story-2013-8?op=1&IR=T, last access 10.06.2016
 Business Insinder (n.d.):14 Jeff Bezos Quotes That Show Why Amazon's Boss Is A Total Genius, in:
http://www.businessinsider.com/jeff-bezos-inspiring-business-quotes-2013-10?IR=T, last access 10.06.2016
 Forbes (2013), How You Can Use The Three Big Ideas Behind Amazon's Success, in:
http://www.forbes.com/sites/petercohan/2013/09/04/how-you-can-use-the-three-big-ideas-behind-amazons-
success/#6559fb5d95df, last access 10.06.2016
 Munzinger (2014), Jeff Bezos, in: https://www.munzinger.de/search/portrait/Jeff+Bezos/0/23015.html, last access
07.06.2016
 Stone, Brad (2013): Der Allesverkäufer, Campus Verlag GmbH: Frankfurt am Main.
 Süddeutsche Zeitung (2015): Captain Future, in: http://sz-magazin.sueddeutsche.de/texte/anzeigen/44019/Captain-
Future, last access 19.06.2016
17

Amazon Strategy
Matthias Hönig (B.A.) & Daniel Marz (B.A.)
Picture: http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg (date: 06.06.2016)
18
“What we need to do is always lean into the
future; when the world changes around you
and when it changes against you - what used
to be a tail wind is now a head wind - you
have to lean into that and figure out what to
do because complaining isn't a strategy.”

KEY FINDINGS
 Disruption is a main strategy of amazon
 Growth is the basic of amazons strategy
 Amazon is one of the biggest service provider (Amazon Web Services)
 Acquisitions are necessary to compete, to improve and to acquire new knowledge
 Amazon‘s customer focus is tailored to low prices, selection and reliable delivery
 Growth achieved through customers, disruption, acquisitions, internationalization and
products
The ambition is to disrupt existing business models and by generate growth
19

AMAZON – VISION
Amazon knew to provide their customers everything what they wanted
Source: Stone, Brad (2013)
“I can’t imagine that ten years from now customers are going to say:
I really love Amazon but I wish their prices were a little higher.” Jeff Bezos
low
prices
convenience
large
selection
from garden products to toys
- everything is available
quick order and delivery
Amazon adjusts their prices
continuously
20

AMAZONS GROWTH STRATEGY
Source: http://www.samseely.com/blog/amznsupplychain
Growth is the basic of amazon‘s strategy
21
Traffic
Customer
experience
Selection
GrowthSellers
Infrastructure
investment
Lower cost
structure
Lower prices
Improves
efficiency
Faster, more
reliable delivery

AMAZONS GROWTH STRATEGY
The growth strategy in its components
Source: Own description
Growth
Internationalization Disruption Acquisition
Competition
Improvement
Technologies
Customer
Selection
Fast delievery
Low prices
Products &
Service
22

BUSINESS PATH
Amazon is the worlds largest online retailer
Source: Max Jallifier , http://de.slideshare.net/MaxJallifier/final-presentation-16443977
Began as one of the first
major companies to sell
goods over the internet
First launched as an
Online Book Store
Due to success diversified
into many other product
lines and services
Multinational E-Commerce
company
Worlds largest
online retailer
Since its creation in 1995 when Amazon began
as an online bookstore, they have significantly
expanded the product offerings, international
sites and worldwide network of fulfillment and
customer-service centers
In 2003 Amazon passed the $5
billion sales mark – it took Wal-
Mart 20 years to achieve this.
Amazon has only 13.900
employees (2006), Wal-Mart has
1,9 million employees (2007)
23

CUSTOMER
The customer ist the king – create an experience for him
Customer focus
Selection low prices
fast convenient/
reliable delivery
Source: https://www.youtube.com/watch?v=mk0qTPqaFcw&ab_channel=EPCGroup.net
Selection available on your screen. Wide product selection  the everything store
„We price products competitively.“ „It‘s okay to loose money, if the customers earn trust.“
„We don‘t wanna make our customers pay for our inefficiencies.“
Various price ranges – new and used. Prices revised daily
Delievery in shortest possible time
„Don´t worry about the competition, worry about the customer.“
24

CUSTOMER ACCOUNTS
By customer focus amazon reached an enormous increase in customers accounts
Source: Own Diagram based on Statista, in http://de.statista.com/statistik/daten/studie/297615/umfrage/anzahl-weltweit-aktiver-kunden-accounts-von-amazon, last access 2016-05-30
1.50
6.20
14.00
20.00
25.00
40.00
34,20
88.00
105.00
130.00
164.00
200.00
237
260
300
0
50
100
150
200
250
300
350
1997 1998 1999 2000 2001 2003 2007 2008 2009 2010 2011 2012 2013 2014 2015
Customeraccountsinmillions
25
+ 20³ %

DISRUPTION STRATEGY
Disruption is a main strategy of Amazon
Source: http://www.foundingfuel.com/column/new-rules-of-business/disrupt-or-destroy-your-own-business-to-make-it-stronger/ date(06.06.16)
„Become your own fiercest competitor and disrupt or destroy your
own business before competition does“
In early 2000, Apple was revving under the innovative leadership
of Steve Jobs. Jeff Bezos, creator of Amazon, feared Apple might
come up with a device that would disrupt its successful online
book retail business
They were to disrupt Amazon’s own successful bookselling
business with an e-book device
Kindle is the child of Amazon’s efforts to disrupt its own business
before other companies could do it to Amazon. Today, it is an
important artillery in Amazon’s product range
Conclusion: The lesson for enterprises is to continuously figure out
how their business could be disrupted and destroyed, and then
implement the solutions into their business before others do. If this
strategy seems too risky, simply buy out the competition that has
the potential to destabilize your business
26

SUPPLY CHAIN AND BUSINESS MODEL ENHANCEMENT
Rising vertical integration
Manufacturers/
publishers
Inventory/
stocking
Packaging
Merchandise
retrieval
Shipment
routing
FedEx/
UPS
Amazon drives
Package to
Delivery service
Consumer
Amazon Warehouses – Largely Automatet
Manufacturers/
publishers
Inventory/
stocking
Packaging
Merchandise
retrieval
Shipment
routing
FedEx/
UPS
Suburban
consumer
Amazon owned supply chain
Amazon
Boeing 767s
Amazon
Prime Now
Urbann
Consumer
(live near FC)
Domestic
manufacturers
Inventory/
stocking
Packaging
Merchandise
retrieval
Shipment
routing
Suburban
consumer
Amazon owned supply chain
Amazon
Boeing 767s
Amazon
Prime Now
Urbann
Consumer
(live near FC)
Int.
manufactors
Amazon
boats
Source:http://www.samseely.com/blog/amznsupplychain (date:06.06.2016)
27

Picture: http://www.businessinsider.com/visualizing-amazons-acquisition-history-2009-7?IR=T
28
Raising budget for aqusitions and investments
ACQUISITION 1998 – 2009

ACQUISITION 1998 – 2004
Acquisitions to improve their retail software services
LiveBid
Exchange.Com $293M
Alexa
Accept.Com $250M
Back to Basics $101.7M
Greenlight.com $25M
Greg Manning Auctions $5M
Kozmó.com $60M
Basis Technology
CatalogCity.com $5M
Egghead.com $6,1M
OurHouse.com
Mobipocket
Custom Flix
Book Surge
CDnow
1998 1999 2000 2001 2002 2004
Source: https://www.crunchbase.com/organization/amazon/acquisitions
IMDB
Telebook $55M
Bookpages
Junglee $190M
PlanetAll.com $55M
29

ACQUISITION 2005 - 2011
Acquisitions to absorb technologies and employees into Amazon‘s IT operations
Joyo.com limited
Shopbop
TextPayMe
wikia Inc.
Brilliance Audio Inc.
Digital Photography Review
Without A Box
Audible $300M
dpreview Cash
Brilliance Audio
Fabric.com
AbeBooks
Shelfari
Reflexive Entertainment
Touchco
Woot $110M
Amie Street
BuyVIP
Quidsi $545M
Foodista
Talk Market
Yieldex
Lexcycle
SnapTell
Zappos $920M
2005 2006 2007 2008 2009 2010
The Book Depository
Pushbutton
Yap Cash
Quorus
2011
30

ACQUISITION 2012 - 2016
Acquisitions help Amazon to compete with Google, Ebay, Apple
TeachStreet
Kiva Systems $775M
Avalon Books
LOVEFiLM $2.5M
UpNext
Double Helix Games
Comixology
Twitch $970M
Rooftop Media
Annapurna Labs $370M
2lemetry
Amiato
Shoefitr
Clusterk
Elemental Technologies $500M
Safaba Translation Solutions
Orbeus
NICE
EMVANTAGE Payments
2012 2013 2014 2015 2016 to be continued…
VONA Text-To-Speech
Goodreads $150M
Evi $26M
Screentech
Liquavista
TenMarks Education
GoPago
31

INTERNATIONALIZATION
Amazons expansion tour started in Germany and England
1998 2000 2004 2005 2011 2012 2013 2014 2015
Germany
England
France Japan China Canada
Italy
Spain
India
Czech
Republic
Brazil
Poland
Mexiko
Picture: https://www.weltkarte.com/typo3temp/images/political-map-of-the-world.jpg
Source: http://www.mwpvl.com/html/amazon_com.html
32

AMAZON WEB SERVICES INFRASTRUCTURE
Amazon Web Service hubs are located in all continents
Source:
https://aws.amazon.com/de/free/?sc_channel=PS&sc_campaign=acquisition_DE&sc_publisher=google&sc_medium=cloud_computing_b&sc_content=aws_url_e&sc_detail=amazon.web%20services&sc_category=cloud_computing&sc_segmen
t=70270349552&sc_matchtype=e&sc_country=DE&s_kwcid=AL!4422!3!70270349552!e!!g!!amazon.web%20services&ef_id=VwpA2AAAAZPRfPAo:20160611121925:s
33

SELECTED CUSTOMER
Amazon Web Services drives companies in different industries
Source: http://image.slidesharecdn.com/amazonwhitepaper-110511144038-phpapp01/95/amazoncom-the-hidden-empire-update-2013-7-638.jpg?cb=1403702271
34
SELECTED AMAZON Customer

LIST OF REFERENCES
 http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg (date: 06.06.2016)
 https://www.linkedin.com/pulse/amazons-internet-things-strategy-new-flywheel-emerges-john-rossman (date:
06.06.2016)
 http://www.samseely.com/blog/amznsupplychain (date: 06.06.2016)
 http://www.foundingfuel.com/column/new-rules-of-business/disrupt-or-destroy-your-own-business-to-make-it-stronger/
(date:06.06.16)
 http://www.samseely.com/blog/amznsupplychain (date::06.06.2016)
 https://www.youtube.com/watch?v=mk0qTPqaFcw&ab_channel=EPCGroup.net (date:06.06.2016)
 https://www.linkedin.com/pulse/amazons-internet-things-strategy-new-flywheel-emerges-john-rossman
 https://aws.amazon.com/de/free/?sc_channel=PS&sc_campaign=acquisition_DE&sc_publisher=google&sc_medium=cl
oud_computing_b&sc_content=aws_url_e&sc_detail=amazon.web%20services&sc_category=cloud_computing&sc_seg
ment=70270349552&sc_matchtype=e&sc_country=DE&s_kwcid=AL!4422!3!70270349552!e!!g!!amazon.web%20servic
es&ef_id=VwpA2AAAAZPRfPAo:20160611121925:s
 https://www.crunchbase.com/organization/amazon/acquisitions
 Max Jallifier , http://de.slideshare.net/MaxJallifier/final-presentation-16443977
 http://www.mwpvl.com/html/amazon_com.html
 Stone, Brad (2013): Der Allesverkäufer, Campus Verlag GmbH: Frankfurt am Main
35

Products & Services
Rebecca Spinner (B.A.) & David Strohm (B.A.)
Picture: http://img.welt.de/img/webwelt/crop109129199/8056934742-ci3x2l-w900/Amazon-CEO-Jeff-Bezos-introduces-new-Kindle-tablet-products.jpg (20.07.2016)
36
“If you´re competitor-focused, you have to wait until
there is a competitor doing something. Being customer-
foused allows you to be more pioneering.“

KEY FINDINGS
 The range of articles of Amazon can be differentiated into products and services
 Amazon offers trade products and also own products
 The offer of services also contains mediation platforms
 A change from pure provider to developer of entertainment services has taken place
in the entertainment area
 The market for IT-Services has experienced a large increase, where cloud services
play an important role
 Nowadays the first product category “book“ is expanded by several additional
services
 With the takeover of several logistic services, Amazon enters the market of the
transport and logistic industry
 With “Amazon prime“ the company succeeded to obtain a unique selling point on the
market
Amazon – The everything store
37

PRODUCTS & SERVICES – CLASSIFICATION OF PRODUCTS
& SERVICES
The range of articles of Amazon can be differentiated into products and services
Products Services
 Amazon as agent
 Entertainment
 Digital services
 Services for books
 Logistics services
 Financial service
 Amazon Prime
38
Selected
key products
and services
 Online products
 Amazon Exclusives
 Amazon Fresh
 Amazon Warehouse Deals
 Amazon-branded Products
 Amazon Fire Products
 Kindle
 Fire Tablet
 Fire TV
 Fire Phone
 Other Amazon-branded Products
 Echo
 Basics
 Further Amazon-branded products

PRODUCTS: ONLINE PRODUCTS
Amazon offers more than 488 million different products
Amazon “Everything Store“
Picture: http://media.corporate-ir.net/media_files/irol/17/176060/product/kindle_10.jpg (21.04.2016)
Source: http://de.slideshare.net/faberNovel/amazoncom-the-hidden-empire/14-In_15_yearsAmazon_went_from (21.04.2016)
https://de.statista.com/infografik/4358/anzahl-der-bei-amazon-angebotenen-produkte/ (22.04.2016)
1995: only one category - books
1995-1998: from books to music
since 2011: more than 16 main categories
2013–2015: the product range has been doubled
2015: 488 million products are available in the store
39

Amazon offers unique and uncommon products
Amazon Exclusives (USA)
Pictures: http://g-ecx.images-amazon.com/images/G/01/exclusives/ae-hqp-img-generic._CB318639848_.png (20.04.2016)
https://turnsignalgloves.zackees.com/wp-content/uploads/2014/08/branded-glove-closeup.jpg (20.04.2016)
http://www.newgadgets.de/uploads/2013/05/olloclip.jpg (20.04.2016)
Source: http://www.chip.de/news/Voellig-irres-Zeug-Amazon-Exclusive-Store-verkauft-Kickstarter-Produkte_77244047.html (22.04.2016)
http://www.businessinsider.com/amazon-launches-amazon-exclusives-2015-3?IR=T (22.04.2016)
• Unique and innovative products
• Amazon helps young entrepreneurs to gain attention
• Products are financed through crowdfunding platforms
Features products which consumers can‘t find on
other e-commerce sites
Zackees: Cycling gloves with LED lights
Olloclip: objective lens for iPhones
40

Amazon Fresh delivers groceries at the next day
Amazon Fresh (USA)
Picture: https://www.connectedly.com/sites/connectedly.com/files/styles/large/public/topic_images/2014/Amazon-Fresh.png?itok=bhGozeBh (20.04.2016)
Source: https://www.simplora.de/wissen/online-supermaerkte/amazon-fresh (22.04.2016)
https://fresh.amazon.com/welcome;jsessionid=E74CD0E94634A0EC95965CE91EC7A08A (22.04.2016)
Next day and early morning door delivery of groceries
And drinks
Customer needs an Amazon prime fresh membership
Amazon.com: 50.000 durable groceries
Amazon fresh: 20.000 fresh and chilled groceries & drinks
Allyouneedfresh
REWE
41

Amazon offers pre-owned products
Amazon Warehouse Deals
Picture: http://dealravine.com/wp-content/uploads/2015/10/Amazon-Warehouse-Deals-Gepruefte-B-Ware-bis-zu-50-Prozent-reduziert-400x300-0ebf301a5ec026aa-1.jpg?c7bfec (20.04.2016)
Source: http://www.amazon.com/gp/feature.html?docId=1000656811 (22.04.2016)
http://www.amazon.de/Warehouse-Deals/b?ie=UTF8&node=3581963031 (22.04.2016)
Discounted pre-owned and open-box items
Amazon uses conditions such as: “like new“, “very good“,
“good“, “acceptable“
Customers for pre-owned products
Including all benefits (right of return, customer service,
free Amazon prime delivery)
Renting out textbooks
Ebay
42

PRODUCTS: AMAZON FIRE PRODUCTS
Amazon developed an innovative e-book reader
Kindle
Picture: http://ecx.images-amazon.com/images/I/61W0XGb88nL._SL1000_.jpg (20.04.2015)
Source: http://www.amazon.com/gp/product/B00I15SB16/ref=topnav_storetab_kstore (22.04.2016)
Users can browse, buy, download and read e-books,
newspaper, magazines and more digital media
E-book users
Series of e-readers: Kindle, Kindle paperwhite,
Kindle voyage, Kindle oasis, Kindle for kids bundle
MAIN COMPETITORS: Tolino, Kobo, Pocketbook, Sony
43

Amazon developed an own tablet to compete against Samsung and Lenovo
Fire Tablet
Picture: http://ecx.images-amazon.com/images/I/61Lqu0uR43L._SL1000_.jpg (20.04.2016)
Source: http://www.amazon.com/dp/B00TSUGXKE/ref=fs_ods_fs_tab_fd (22.04.2016)
Tablet version of Amazon kindle e-reader
Tablet users
Series of tablet computers: Fire, Fire HD6,
Fire HD8, Fire HD10, Fire kids edition
Operating system: Google Android - Fire OS
Apple, Samsung, Lenovo
44

Amazon offers a big entertainment bundle
Fire TV
Picture: http://ecx.images-amazon.com/images/I/61jPxT1VThL._SL1000_.jpg (20.04.2016)
Source: http://www.amazon.com/b/?ie=UTF8&node=8521791011 (22.04.2016)
Network applicant & entertainment device
Streams digital content (audio & video) on a HD TV
Microconsole – for playing video games
Entertainment users
Fire TV stick: powerful streaming media stick
Fire TV (box): streaming media player (4K Ultra HD)
Fire TV Gaming Edition: Fire TV, game controller, games
Apple TV, Netflix, Maxdome, Play Station, X-Box
45

Amazon failed with his self developed smartphone
Fire Phone
Picture: http://vrworld.com/wp-content/uploads/2015/08/Amazon-Fire-Phone.jpeg (20.04.2016)
Source: https://en.wikipedia.org/wiki/Fire_Phone (22.04.2016)
3D enabled smartphone
Smartphone users
Announced in June 2014 & launched in July 2014
Selling stopped in August 2015
Google Phone, iPhone, Samsung Galaxy
46

PRODUCTS: OTHER AMAZON-BRANDED PRODUCTS
Amazon offers an intelligent and connected loudspeaker
Echo
Picture: http://ecx.images-amazon.com/images/I/61cnyft6IlL._SL1000_.jpg (20.04.2016)
Source: http://www.amazon.com/dp/B00X4WHP5E/ref=nav_shopall_k_ods_ha_dr (22.04.2016)
Wireless speaker which is voice-controlled
Responds to the name “Alexa“
Multimedia users
Plays music, answers questions, provides sport scores,
reads audiobooks & news, reports traffic & weather,
gives info on local businesses, controls lights/thermostats
47

Amazon offers alternatives to expensive brand products
Basics
Picture: http://technologydigits.com/wp-content/uploads/2015/04/AmazonBasics-High-Speed-Mini-HDMI-to-HDMI-Cable-Review.jpg (22.04.2016)
Source: http://www.amazon.com/b/?node=10112675011 (22.04.2016)
http://www.businessinsider.de/amazonbasics-tech-gadgets-worth-buying-2015-12?r=US&IR=T (22.04.2016)
Amazon-branded electronic products and
electronic accessoires
Commodity-level items at lower prices than
brand name products
Blank DVDs, HDMI cables, Batteries…
Home necessities: bed sheets, bath towels, knife sets…
Syncwire, Aukey
48

Amazon offers own products among other trade names
Further Amazon-branded products
Picture: http://i.computer-bild.de/imgs/6/2/3/6/4/8/1/Amazon-Elements-1024x576-9e332518ea8ef6db.jpg (23.04.2016)
Source: http://www.spiegel.de/netzwelt/web/amazons-ableger-der-heimliche-hersteller-a-650756.html (23.04.2016)
http://www.spiegel.de/netzwelt/web/amazon-elements-online-haendler-produziert-eigene-windeln-a-1006746.html (23.04.2016)
Amazon products among other trade names
Denali: tools
Elements: Baby care products
Amazon jewels division
Strathwood: high-priced garden furniture
Pinzon: interior decoration
Pike Street: low-priced bedroom and bathroom products
49

PRODUCTS & SERVICES – CLASSIFICATION OF PRODUCTS
& SERVICES
Amazon offers an extensive range of different services
Services
 Amazon as Agent
 Amazon Marketplace
 Amazon Advantage
 Amazon Handmade
 Amazon Home Services
 Entertainment
 Amazon Originals
 Amazon Instant Video
 Amazon Prime Music
 Amazon Studios
 Logistics Services
 Amazon Prime Now
 Amazon Locker
 Amazon Sunday Delivery
 Amazon Parcel Delivery
 Amazon Seafreight
50
 Digital Services
 Amazon Cloud Drive
 Amazon Web Services
 Amazon Software Dowloads
 Amazon App Shop
 Services for Books
 Amazon Textbook Rental
 Print on Demand
 Kindle Direct Publishing
 Kindle Library
 Financial Services
 Amazon VISA Credit Card
 Amazon Prime

SERVICE: AMAZON.COM.MARKETPLACE
Marketplace also offers used products and products from third companies
Amazon Marketplace
Source: http://www.experto.de/geld-sparen/verbrauchertipps/amazon-marketplace-was-ist-das-eigentlich.html (19.04.2016)
http://www.amazon.de/gp/help/customer/display.html?nodeId=886416 (30.04.2016)
https://services.amazon.de/programme/online-verkaufen/so-funktionierts.html (23.04.2016)
http://www.focus.de/digital/internet/ebay/tid-11355/online-shopping-second-hand-artikel-amazon-marketplace_aid_322492.html (23.04.2016)
Picture: http://www.chip.de/ii/2/2/6/7/2/4/0/4/03-amazon-a9f244d238eb6125.png (25.04.2016)
A portal within the amazon sales platform, where new
or used products could be bought or sold
Independent sellers, price-conscious consumers,
customers for vintage products
Offering products, which are a part of the Amazon
Portfolio and not sold by companies anymore, e.g.
antiquarian books, records, etc.
Ebay
51

SERVICE: AMAZON AS AGENT
The offer of services also contains a specifically platform for brandnew products
Amazon Advantage
Source: http://www.unternehmer.de/marketing-vertrieb/707-19-000-000-000-umsatz-das-geheimnis-von-amazon (20.05.2016)
http://advantage.amazon.de/gp/vendor/public/join (20.05.2016)
http://advantage.amazon.de/gp/vendor/public/browse-main?rw_useCurrentProtocol=1 (20.05.2016)
Picture: http://advantage.amazon.de/gp/vendor/public/rules?rw_useCurrentProtocol=1 (20.05.2016)
A portal, where only new products can be bought or sold
Complying consumers
Only vendors allowed, who sell media products, books,
records, movies and self-published books.
52

Amazon broadens the range of articles by handmade products
Amazon Handmade
Source: http://www.handelsblatt.com/unternehmen/handel-konsumgueter/online-handel-bei-amazon-gibt-es-jetzt-auch-handmade/12431070.html (20.05.2016)
http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-waechst-eine-kreative-kampfmaschine/12488510.html (01.06.2016)
Picture: http://t3n.de/news/amazon-selbstgemachtes-handmade-612452/ (01.06.2016)
A portal, where handmade products will be offered
and sold
sellers and consumers for handmade jewellery, furniture,
art, lamps, party accessories, etc.
Products are manufactured completly by hand, otherwise
it must not sell on this portal
Etsy, DaWanda
53

On “Amazon Home Services“ different craftmen services can be engaged
Amazon Home Service
Picture: http://www.chicago-d.com/312/wp-content/uploads/2015/08/amazon-home-services.jpg (01.06.2016)
Source: http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html (01.06.2016)
http://www.heise-regioconcept.de/online-marketing/amazon-home-services (01.06.2016)
A portal, which acts as intermediary between consumers
and service providers
Professional service providers or private person, who
are specialized. Consumers with less time, know-how
and / or also be price-conscious.
Provision of services like repairs (car, smart phones, etc.)
tyre changes, music lessons, cutting the lawn, etc.
54

SERVICE: ENTERTAINMENT
Amazon competes in the video on demand market with Netflix and other providers
Amazon Instant Video
Picture: http://www.heise.de/imgs/18/1/4/6/1/5/9/1/bild_0-98244de756eaecf9.jpeg (20.04.2016)
Source: http://www.amazon.com/Instant-Video/b/ref=topnav_storetab_atv?_encoding=UTF8&node=2858778011 (23.04.2016)
https://en.wikipedia.org/wiki/Amazon_Video (23.04.2016)
https://de.wikipedia.org/wiki/Amazon_Video (23.04.2016)
Merger of Amazon prime and
Amazon‘s online video store Lovefilm
Online video store & Internet video on demand service
Film and video lover
Offers: for rental or for sale
Television shows, Films, Amazon video,
Amazon prime video, Lovefilm DVD
Netflix, Maxdome, Watchever
55

A change from pure provider to developer of entertainment services has taken place in the
entertainment area
Amazon Originals
Picture: https://tvbtn.files.wordpress.com/2015/09/amazon-originals-comedy-logo1.jpg (20.04.2016)
Source: http://www.amazon.de/b?ie=UTF8&node=5701989031 (23.04.2016)
Self-produced series of Amazon studios
Exclusive advantages for Amazon prime members
Series lover
Productions: Bosch, Mad Dogs, Mozart in the jungle,
Wanted…and some more
56

Amazon competes in the music streaming market with Spotify and other providers
Amazon Prime Music
Picture: http://www.geek.com/wp-content/uploads/2014/06/amazon_prime_music.jpg (23.04.2016)
Source: http://www.amazon.de/b/ref=dmm_pr_bbx_lrnpm?ie=UTF8&node=6692444031&pf_rd_m=A3JWKAKR8XB7XF&pf_rd_s=merchandised-search-left-
2&pf_rd_r=0YMC7QMXYRTDYQKYH45M&pf_rd_t=101&pf_rd_p=809030827&pf_rd_i=5686557031 (23.04.2016)
Music streaming with Amazon Prime
Unlimited, ad-free streaming
Online and offline available
Music lover
Access to: over a million songs, thousands of albums,
hundreds of playlists, personalized radio
Spotify, Deezer, Apple music
57

With “Amazon studios“ Amazon has its own movie & series production company
Amazon Studios
Picture: http://img.gqitalia.it/wp-content/uploads/2015/01/1421746313_cinema-amazon-1280x628.jpg (20.04.2016)
Source: https://studios.amazon.com/ (23.04.2016)
Movie and series production company
Content comes from online submissions and
crowd-sourced feedback
Open-door policy for submitting ideas online: From
aspiring writers up to professionals
Submitting movie scripts or video content
Amazon storywriter: Free, cloud-based screenwriting app
Submitting the finished script to Amazon Studios
58

SERVICE: DIGITAL SERVICES
The market for IT-Services has currently a great development of growth, where cloud
services will play an important role
Amazon Cloud Drive
Source: https://www.amazon.de/clouddrive/home (08.06.2016)
https://www.amazon.de/clouddrive/pricing?ref_=cd_home_plans_pricing (08.06.2016)
https://www.amazon.de/clouddrive/learnmore?ref_=cd_home_featlm#features-section (08.06.2016)
Picture: https://www.tekrevue.com/wp-content/uploads/2015/03/amazon-cloud-drive.jpg (08.06.2016)
Provision of an internet-based digital storage for
telephone data, music and photos
Amazon Prime customers (free of charge), mobile people,
Photographers, young people
Important part of the Amazon Web Services.
Location-independent access to stored data with smart
phones and tablets by an application.
Dropbox, OneDrive
59

Amazon supports companies in the day to day business activities by offering flexible server
capacity
Amazon Work Mail
Source: https://aws.amazon.com/de/workmail/details/ (08.06.2016)
https://aws.amazon.com/de/workmail/ (08.06.2016)
https://www.amazon-watchblog.de/unternehmen/491-amazon-lieferprobleme-prime-workmail.html (08.06.2016)
Picture: https://blink.ucsd.edu/_images/technology-tab/aws.jpg (08.06.2016)
Provision of an internet-based digital storage for business
emails, business contacts and appointment book.
Business with small server capacity: start-up companies,
small and medium-sized enterprises
Important part of the Amazon Web Services.
Location-independent access to stored business emails,
contacts and appointments by smart phones and tablets.
.
60

Amazon offers a wide range of software downloads
Amazon Software Downloads
Source: http://www.heise.de/newsticker/meldung/Amazon-bietet-Software-zum-Download-1540838.html (30.04.2016)
https://www.amazon.de/b?node=950236031 (30.04.2016)
https://www.amazon.de/gp/help/customer/display.html?nodeId=201380160 (30.04.2016)
Picture: http://i.computer-bild.de/imgs/6/2/2/3/2/5/0/Software-Downloads-Bestseller-bei-Amazon-658x370-3ebe1c34d19909ff.jpg (30.04.2016)
Provision of a download service for software and video
games for direct installation
Mobile people
Available downloads of software are e.g.:
Graphics & Image Processing, Office-Programs,
Security & Data Protection, Taxation & Finance, etc.
61

Amazon has its own App Store for Android mobile devices
Amazon App Store
Source: http://www.golem.de/news/android-amazons-app-shop-ab-sofort-in-deutschland-verfuegbar-1208-94215.html4 (30.04.2016)
http://www.giga.de/webapps/amazon-appstore/ (30.04.2016)
Picture: http://www.touchbible.com/images/amazonappstore.png (30.04.2016)
Provision of android applications for smart phones
and tablets
Amazon customer and user of Amazons own products
Every application will be auditted extensively, before
releasing on the store. Normally preinstalled on
Amazon products like Kindle.
Google, Apple
62

SERVICE: SERVICES FOR BOOKS
Students and pupils receive a free account for study and school books
Kindle Textbook Rental
Source: http://winfuture.de/news,64414.html (02.05.2016)
https://www.amazon.com/b?node=222321001 (02.05.2016)
Picture: http://g-ecx.images-amazon.com/images/G/01/kindle/merch/textbooks/helvetica/US-KindleTextbooks-TCG-470x200._V343727592_.jpg (02.05.2016)
Rental of specialized literature for pupils and students
Students, pupils
Location-independent access to this literature with Kindle
products, smart phones, tablets and computers.
63

Self-publisher has the chance to print their self-written books
Print on Demand
Source: http://www.literaturcafe.de/createspace-von-amazon-sinnvoller-service-fuer-kleine-verlage/ (02.05.2016)
http://www.buchveroeffentlichen.com/print-on-demand-mit-amazon-create-space/ (02.05.2016)
https://www.createspace.com/diy-de?ref=1681523 (02.05.2016)
Picture: https://images-eu.ssl-images-amazon.com/images/G/03/books/DEPODLogo._V319596901_.jpg (02.05.2016)
Publishing houses and self-publisher can print their
books in small print-runs without a minimum circulation.
Publishing houses and self-publisher
The books will not be printed until one customer have
ordered one online on the Amazon sales platform
Publishing houses
64

With “Kindle Direct Publishing“ it´s possible to publish books directly in a digital way
Kindle Direct Publishing
Source: http://www.spiegel.de/wirtschaft/unternehmen/amazon-wie-der-konzern-den-ebook-markt-erobert-a-1028186.html (24.04.2016)
https://kdp.amazon.com/ (24.04.2016)
Picture: http://www.tckpublishing.com/wp-content/uploads/2014/03/kindle-direct-publishing.jpg (24.04.2016)
Authors can publish their self-written books as a e-Book
on the Amazon sales platform.
Prospective authors, authors with less money or
reputation to publish by publishing houses.
The sales price can be determined by the authors
themselves. In general they receive more percent of the
sales price like selling via publishing houses.
Publishing houses
65

Amazon has an own digital library for its customers
Kindle Library
Source: http://www.amazon.de/gp/help/customer/display.html?nodeId=200757120 (24.04.2016)
http://www.buchreport.de/nachrichten/online/online_nachricht/datum/2012/10/12/amazon-eroeffnet-digitale-bibliothek.htm?no_cache=1 (24.04.2016)
http://www.n-tv.de/wirtschaft/Amazon-verleiht-Ebooks-article7451211.html (24.04.2016)
Picture: http://www.hifitest.de/images/news/big/amazon-medien-amazon-kindle-leihbuecherei-ab-sofort-verfuegbar-3507.jpg (24.04.2016)
Just one book can be rented monthly and the book has
to be return before another book can be rented
Consumer of e-books and Amazon products
A mobile device of Amazon is required to use this service,
like Kindle products, Fire Phones or Fire Tablets
66

SERVICE: LOGISTICS SERVICES
Amazon enables an one hour delivery for selected products
Amazon Prime Now
Source: http://www.welt.de/wirtschaft/webwelt/article155266101/So-funktioniert-das-neue-Ein-Stunden-Amazon.html (08.06.2016)
http://www.giga.de/webapps/amazon-prime/specials/amazon-prime-now-startet-lieferungen-innerhalb-einer-stunde-bald-auch-in-deutschland/ (08.06.2016)
Picture: http://i.computer-bild.de/imgs/6/9/8/9/7/3/5/Amazon-Prime-Now-Produktfoto-1024x576-2a67e2e95b11470b.jpg (08.06.2016)
This concept guarantees a delivery within one or two
hours after ordering certain products like food, beverage,
toys and selected electronic items
People with short-term requirements
Conditions: Amazon Prime customer, minimum order and
a delivery fee for the one hour delivery. Only offered in a
few cities, like New York, Berlin, Mailand, London, etc.
67

The customers have the opportunity to pick up their orders from an Amazon Locker
Amazon Locker
Source: http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-locker-onlineriese-will-eigene-packstationen-aufbauen/12987006.html (08.06.2016)
http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html (08.06.2016)
Picture: http://www.davetavres.com/wp-content/uploads/2013/12/photo61.jpg (08.06.2016)
Development of a network with own, fully automatic
package locker.
Consumers who order products at amazon.com and also
want to return ordered products.
Customers can collect their parcels and / or lock in
returns
DHL
68

Amazon enables a delivery on Sunday
Amazon Sunday Delivery
Source: http://www.boersenblatt.net/artikel-onlinehandel.690060.html (08.06.2016)
http://futurezone.at/digital-life/amazon-liefert-in-usa-auch-am-sonntag-aus/35.113.955 (08.06.2016)
Picture: http://www.21cpw.com/wp-content/uploads/2014/07/amazon-usps.jpg (08.06.2016)
This concept includes a delivery, which is availabe
7 days a week. It is already implemented in several cities
of the USA and Great Britain
People with short-term requirements
Conditions: Amazon Prime customer and the availability
of the ordered products. USA: cooperation with the
logistics service provider U.S, Postal Service
69

Amazon enters the delivery service business by delivering the parcels which were ordered
on its webstore
Amazon Parcel Delivery
Source: https://www.onlinehaendler-news.de/handel/allgemein/20155-liefer-service-amazon-stellt-pakete-selbst-zu.html (08.06.2016)
http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html (08.06.2016)
http://www.sueddeutsche.de/muenchen/fuerstenfeldbruck/olching-wo-amazon-die-pakete-fuer-die-muenchner-zusammenstellt-1.2756472 (08.06.2016)
http://www.zeit.de/wirtschaft/2016-02/amazon-paketdienst-usa-auslieferung-eigene-fahrer (08.06.2016)
Picture: http://www.manager-magazin.de/images/image-903513-galleryV9-wegz-903513.jpg (08.06.2016)
An action to shape the final delivery regarding to the main
object: Same-Day-Delivery and in some cases
Next-Day-Delivery
Consumers who order products at amazon.com
Building of distribution centres near big cities and regional
or local logistics service provider will take over the
transportation to the end-customers
DHL, Hermes
70

Amazon advances their field of logistics services by seafreight
Amazon Seafreight
Source: http://www.verkehrsrundschau.de/amazon-draengt-ins-seefracht-geschaeft-1743719.html (08.06.2016)
http://www.manager-magazin.de/unternehmen/artikel/amazon-wird-seefracht-dienstleister-a-1072368.html (08.06.2016)
http://www.handelszeitung.ch/unternehmen/amazon-steigt-ins-seefracht-geschaeft-ein-965466 (08.06.2016)
Picture: http://www.handelszeitung.ch/sites/handelszeitung.ch/files/imagecache/teaser-big/lead_image/frachtschiff.jpg (08.06.2016)
An action to act in the sea freight business
Producer, who want to send their products via seafreight.
Even if Amazon can not operate own ships on the ocean,
they have now the possibility to book shipping space.
Kühne & Nagel, Schenker, Dachser, Panalpina
71

SERVICE: FINANCIAL SERVICES
Amazon attracts and retains customers through a credit card with an integrated bonus
program
Amazon VISA Credit Card
Picture: http://www.beyondthecoupon.com/wp-content/uploads/2013/07/Amazon-Credit-Card-Image.png (20.04.2016)
Source: https://www.amazon.com/iss/credit/rewardscardmember/ref=nav_shopall_credit_cbcc?_encoding=UTF8&plattr=CBCCGNO (23.04.2016)
Attractive bonus program
Get rewarded on every purchase
Collect Amazon-points
Loyal Amazon customers
Redeem for: Instant savings at Amazon, cash-back,
gift cards, travel
Start with a free credit & no annual fee for the first year
Payback
72

SERVICE: AMAZON PRIME
With “Amazon prime“ the company succeeded to obtain a unique selling point on the market
Picture: http://www.gizmosnack.com/wp-content/uploads/2015/11/Amazon-Prime-logo.png (21.04.2016)
Source: https://www.amazon.com/gp/product/B00DBYBNEE/ref=nav_prime_try_btn?redirect=true (19.04.2016)
Free two-day shipping
Unlimited movies and TV shows
Unlimited music streaming
Over a million e-books
Free unlimited photo storage
Free same-day delivery in eligible areas
Save 25% with prepayment discount
Premium access to exclusive offers and promotions
…and many other benefits.
73

SPECULATIONS FOR THE FUTURE
Amazon is constantly evolving and expands into new business
Source: http://www.suedkurier.de/nachrichten/wirtschaft/Amazon-zieht-es-in-die-Mode-Branche;art416,8632062?xing_share=news (08.06.2016)
http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html (08.06.2016)
https://fresh.amazon.com/dash/ (08.06.2016)
Picture: http://images.technewstoday.com.s3.amazonaws.com/tnt/Amazon-Just-Made-Life-Easier-For-You.jpg (08.06.2016)
Entering the fashion industry with own fashion collections
focusing on Prêt-à-Porter.
 Sales online and offline is planned
Developing a concept of automatic payment at
supermarkets. At this, the purchasing processes of
customers will be monitored and they can leave the
market with out physical payment. The customers will be
identified by their face or ID-Cards.
 Patent is already applied
Amazon Dash – A stick, which can scan the barcodes of
products to create a digital shopping list.
 currently in the test phase
74

LIST OF REFERENCES
 http://de.slideshare.net/faberNovel/amazoncom-the-hidden-empire/14-In_15_yearsAmazon_went_from (21.04.2016)
 https://de.statista.com/infografik/4358/anzahl-der-bei-amazon-angebotenen-produkte/ (22.04.2016)
 http://www.chip.de/news/Voellig-irres-Zeug-Amazon-Exclusive-Store-verkauft-Kickstarter-Produkte_77244047.html
(22.04.2016)
 http://www.businessinsider.com/amazon-launches-amazon-exclusives-2015-3?IR=T (22.04.2016)
 https://www.simplora.de/wissen/online-supermaerkte/amazon-fresh (22.04.2016)
 https://fresh.amazon.com/welcome;jsessionid=E74CD0E94634A0EC95965CE91EC7A08A (22.04.2016)
 http://www.amazon.com/gp/feature.html?docId=1000656811 (22.04.2016)
 http://www.amazon.de/Warehouse-Deals/b?ie=UTF8&node=3581963031 (22.04.2016)
 http://www.amazon.com/gp/product/B00I15SB16/ref=topnav_storetab_kstore (22.04.2016)
 http://www.amazon.com/dp/B00TSUGXKE/ref=fs_ods_fs_tab_fd (22.04.2016)
 http://www.amazon.com/b/?ie=UTF8&node=8521791011 (22.04.2016)
 https://en.wikipedia.org/wiki/Fire_Phone (22.04.2016)
 http://www.amazon.com/dp/B00X4WHP5E/ref=nav_shopall_k_ods_ha_dr (22.04.2016)
 http://www.amazon.com/b/?node=10112675011 (22.04.2016)
 http://www.businessinsider.de/amazonbasics-tech-gadgets-worth-buying-2015-12?r=US&IR=T (22.04.2016)
75

LIST OF REFERENCES
 http://www.spiegel.de/netzwelt/web/amazons-ableger-der-heimliche-hersteller-a-650756.html (23.04.2016)
 http://www.spiegel.de/netzwelt/web/amazon-elements-online-haendler-produziert-eigene-windeln-a-1006746.html
(23.04.2016)
 http://www.amazon.com/Instant-Video/b/ref=topnav_storetab_atv?_encoding=UTF8&node=2858778011 (23.04.2016)
 https://en.wikipedia.org/wiki/Amazon_Video (23.04.2016)
 https://de.wikipedia.org/wiki/Amazon_Video (23.04.2016)
 http://www.amazon.de/b?ie=UTF8&node=5701989031 (23.04.2016)
 http://www.amazon.de/b/ref=dmm_pr_bbx_lrnpm?ie=UTF8&node=6692444031&pf_rd_m=A3JWKAKR8XB7XF&pf_rd_s
=merchandised-search-left-
2&pf_rd_r=0YMC7QMXYRTDYQKYH45M&pf_rd_t=101&pf_rd_p=809030827&pf_rd_i=5686557031 (23.04.2016)
 https://studios.amazon.com/ (23.04.2016)
 https://www.amazon.com/iss/credit/rewardscardmember/ref=nav_shopall_credit_cbcc?_encoding=UTF8&plattr=CBCCG
NO (23.04.2016)
 https://www.amazon.com/gp/product/B00DBYBNEE/ref=nav_prime_try_btn?redirect=true (19.04.2016)
 http://www.experto.de/geld-sparen/verbrauchertipps/amazon-marketplace-was-ist-das-eigentlich.html (19.04.2016)
 http://www.amazon.de/gp/help/customer/display.html?nodeId=886416 (30.04.2016)
 https://services.amazon.de/programme/online-verkaufen/so-funktionierts.html (23.04.2016)
 http://www.chip.de/ii/2/2/6/7/2/4/0/4/03-amazon-a9f244d238eb6125.png (25.04.2016)
76

LIST OF REFERENCES
 http://www.focus.de/digital/internet/ebay/tid-11355/online-shopping-second-hand-artikel-amazon-
marketplace_aid_322492.html (19.04.2016)
 http://www.unternehmer.de/marketing-vertrieb/707-19-000-000-000-umsatz-das-geheimnis-von-amazon (20.05.2016)
 http://advantage.amazon.de/gp/vendor/public/join (20.05.2016)
 http://advantage.amazon.de/gp/vendor/public/browse-main?rw_useCurrentProtocol=1 (20.05.2016)
 http://advantage.amazon.de/gp/vendor/public/rules?rw_useCurrentProtocol=1 (20.05.2016)
 http://www.handelsblatt.com/unternehmen/handel-konsumgueter/online-handel-bei-amazon-gibt-es-jetzt-auch-
handmade/12431070.html (20.05.2016)
 http://t3n.de/news/amazon-selbstgemachtes-handmade-612452/ (01.06.2016)
 http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-waechst-eine-kreative-
kampfmaschine/12488510.html (01.06.2016)
 http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html
(01.06.2016)
 http://www.heise-regioconcept.de/online-marketing/amazon-home-services (01.06.2016)
 https://www.amazon.de/clouddrive/home (08.06.2016)
 https://www.amazon.de/clouddrive/pricing?ref_=cd_home_plans_pricing (08.06.2016)
 https://www.amazon.de/clouddrive/learnmore?ref_=cd_home_featlm#features-section (08.06.2016)
 https://www.tekrevue.com/wp-content/uploads/2015/03/amazon-cloud-drive.jpg (08.06.2016)
77

LIST OF REFERENCES
 https://aws.amazon.com/de/workmail/details/ (08.06.2016)
 https://aws.amazon.com/de/workmail/ (08.06.2016)
 https://www.amazon-watchblog.de/unternehmen/491-amazon-lieferprobleme-prime-workmail.html (08.06.2016)
 https://blink.ucsd.edu/_images/technology-tab/aws.jpg (08.06.2016)
 http://www.chip.de/downloads/Amazon-Music_61989759.html (02.05.2016)
 https://www.amazon.de/amazon-music-app/b?ie=UTF8&node=1949586031&ref=cssoc_FM_SS_OTHER (02.05.2016)
 http://www.chip.de/webapps/Amazon-Music_48139030.html (02.05.2016)
 http://blog.sonos.com/wp-content/uploads/2015/10/Amazon_Music_logo1-1.png (02.05.2016)
 http://www.heise.de/newsticker/meldung/Amazon-bietet-Software-zum-Download-1540838.html (30.04.2016)
 https://www.amazon.de/b?node=950236031 (30.04.2016)
 https://www.amazon.de/gp/help/customer/display.html?nodeId=201380160 (30.04.2016)
 http://i.computer-bild.de/imgs/6/2/2/3/2/5/0/Software-Downloads-Bestseller-bei-Amazon-658x370-3ebe1c34d19909ff.jpg
(30.04.2016)
 http://www.golem.de/news/android-amazons-app-shop-ab-sofort-in-deutschland-verfuegbar-1208-94215.html4
(30.04.2016)
 http://www.giga.de/webapps/amazon-appstore/ (30.04.2016)
 http://www.touchbible.com/images/amazonappstore.png (30.04.2016)
78

LIST OF REFERENCES
 http://winfuture.de/news,64414.html (02.05.2016)
 https://www.amazon.com/b?node=222321001 (02.05.2016)
 http://g-ecx.images-amazon.com/images/G/01/kindle/merch/textbooks/helvetica/US-KindleTextbooks-TCG-
470x200._V343727592_.jpg (02.05.2016)
 http://www.literaturcafe.de/createspace-von-amazon-sinnvoller-service-fuer-kleine-verlage/ (02.05.2016)
 http://www.buchveroeffentlichen.com/print-on-demand-mit-amazon-create-space/ (02.05.2016)
 https://www.createspace.com/diy-de?ref=1681523 (02.05.2016)
 https://images-eu.ssl-images-amazon.com/images/G/03/books/DEPODLogo._V319596901_.jpg (02.05.2016)
 http://www.spiegel.de/wirtschaft/unternehmen/amazon-wie-der-konzern-den-ebook-markt-erobert-a-1028186.html
(24.04.2016)
 https://kdp.amazon.com/ (24.04.2016)
 http://www.tckpublishing.com/wp-content/uploads/2014/03/kindle-direct-publishing.jpg (24.04.2016)
 http://www.amazon.de/gp/help/customer/display.html?nodeId=200757120 (24.04.2016)
 http://www.buchreport.de/nachrichten/online/online_nachricht/datum/2012/10/12/amazon-eroeffnet-digitale-
bibliothek.htm?no_cache=1 (24.04.2016)
 http://www.n-tv.de/wirtschaft/Amazon-verleiht-Ebooks-article7451211.html (24.04.2016)
 http://www.hifitest.de/images/news/big/amazon-medien-amazon-kindle-leihbuecherei-ab-sofort-verfuegbar-3507.jpg
(24.04.2016)
79

LIST OF REFERENCES
 http://www.welt.de/wirtschaft/webwelt/article155266101/So-funktioniert-das-neue-Ein-Stunden-Amazon.html
(08.06.2016)
 http://www.giga.de/webapps/amazon-prime/specials/amazon-prime-now-startet-lieferungen-innerhalb-einer-stunde-bald-
auch-in-deutschland/ (08.06.2016)
 http://i.computer-bild.de/imgs/6/9/8/9/7/3/5/Amazon-Prime-Now-Produktfoto-1024x576-2a67e2e95b11470b.jpg
(08.06.2016)
 http://www.handelsblatt.com/unternehmen/handel-konsumgueter/amazon-locker-onlineriese-will-eigene-packstationen-
aufbauen/12987006.html (08.06.2016)
 http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html
(08.06.2016)
 http://www.davetavres.com/wp-content/uploads/2013/12/photo61.jpg (08.06.2016)
 http://www.boersenblatt.net/artikel-onlinehandel.690060.html (08.06.2016)
 http://futurezone.at/digital-life/amazon-liefert-in-usa-auch-am-sonntag-aus/35.113.955 (08.06.2016)
 http://www.21cpw.com/wp-content/uploads/2014/07/amazon-usps.jpg (08.06.2016)
 https://www.onlinehaendler-news.de/handel/allgemein/20155-liefer-service-amazon-stellt-pakete-selbst-zu.html
(08.06.2016)
 http://www.welt.de/wirtschaft/article152425472/Amazon-loest-sich-bei-Paketlieferung-von-DHL-System.html
(08.06.2016)
 http://www.sueddeutsche.de/muenchen/fuerstenfeldbruck/olching-wo-amazon-die-pakete-fuer-die-muenchner-
zusammenstellt-1.2756472 (08.06.2016)
80

LIST OF REFERENCES
 http://www.zeit.de/wirtschaft/2016-02/amazon-paketdienst-usa-auslieferung-eigene-fahrer (08.06.2016)
 http://www.manager-magazin.de/images/image-903513-galleryV9-wegz-903513.jpg (08.06.2016)
 http://www.verkehrsrundschau.de/amazon-draengt-ins-seefracht-geschaeft-1743719.html (08.06.2016)
 http://www.manager-magazin.de/unternehmen/artikel/amazon-wird-seefracht-dienstleister-a-1072368.html (08.06.2016)
 http://www.handelszeitung.ch/unternehmen/amazon-steigt-ins-seefracht-geschaeft-ein-965466 (08.06.2016)
 http://www.suedkurier.de/nachrichten/wirtschaft/Amazon-zieht-es-in-die-Mode-
Branche;art416,8632062?xing_share=news (08.06.2016)
 http://www.spiegel.de/netzwelt/web/amazon-home-services-ziegen-und-andere-dienstleistungen-a-1026415.html
(08.06.2016)
 https://fresh.amazon.com/dash/ (08.06.2016)
 http://images.technewstoday.com.s3.amazonaws.com/tnt/Amazon-Just-Made-Life-Easier-For-You.jpg (08.06.2016)
81

Technology & Innovation
Mona Milite (B.A.) & Mona Werz (B.A.)
Source: http://blogs-images.forbes.com/steveschaefer/files/2015/01/Bezos-Amazon-e1421161028363-1940x1090.jpg (12.07.2016)
The common question that gets asked in
business is, „why?“ That‘s a good question,
but an equally valid question is, „why not?“
82

KEY FINDINGS
 Amazon want to be the biggest collector of data in the world
 Prime Air: The future of delivery
 From retailing to data space provider
 Optimizing the sales through delivery and storage services
 Maximum Software Backup to handle the big data
 Artificial Intelligence in our homes
Always be one step ahead
83

THE ROLE OF TECHNOLOGY
Customer Business
Partner
SuppliersBackend
Technology
Amazon want to be the biggest collector of data in the world
84
1 Click
User Review System
Collaborative filtering
technology
Prime Air
Look inside the book
Software Backup
Alexa
Amazon Web Services
Server
Storage
Network
Database
Developing
Administration and Registry
Fullfilment Center
Fulfillment by Amazon
DATADATA
DATA
DATA
DATA
DATA
DATA DATA

CUSTOMER – CENTRIC INNOVATIONS
E-commerce is more comfortable than commerce for customers
Source: Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 212 f.
Picture: http://www.leavesofgoldpress.com/img/look-inside1.png (10.06.2016)
http://worldcinemaparadise.com/wp/wp-content/uploads/2015/01/Amazon-3.jpg (10.06.2016)
http://www.bilder.keepdrum.de/etope/amazon-payment.gif (10.06.2016)
http://7hoursalesletter.com/images/add-to-cart-big.gif (10.06.2016)
http://www.sherrysnider.com/wp-content/uploads/2012/09/BuyNowWithOneClick.png (10.06.2016)
85
Select
 Customer reviews (1995)
 Recommendations (1997)
 Look inside the book (2001)
 Search inside the book (2003)
Order
 1-Click Ordering (1999)
Receive
 Where‘s my stuff (2001)
 Free Super Saver
Shipping (2002)
Amazon was a first-mover for most of e-commerce‘s now ubiquitous best-practices

1-CLICK ORDERING
Reduces risk to lose customers
Source: Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 212 f.
Picture: http://australiandiscounts.com/wp-content/uploads/2012/05/PAyment-11.png?069dc4 (10.06.2016)
86
Conversion funnel
 Each step of the funnel
carries a risk to lose
potential customers and
lead to shopping cart
abandonments
Conversion
optimization
 Amazon monitored each
step to improve its
conversion rate, a tactic
that is now pervasive in
the industry
1-click ordering
 Patented in 1999, and
licensed to Apple in
2000
 Allows to bypass the
shopping cart: it‘s only
one step!
 Increased Amazon‘s
conversion rate
With 1-Click, Amazon revolutionized the buying process by taking convenience to extremes

User Review System
Improved review system (since June 2015)
Prioritize:
The power in the hand of the customers
Source: http://www.cnet.com/news/amazon-updates-customer-reviews-with-new-machine-learning-platform/
Picture: http://beginnerstech.co.uk/wp-content/uploads/2015/06/how-to-get-amazon-reviews-kindle.jpg (10.06.2016)
1. newer reviews
2. reviews from verified Amazon purchasers
3. and those that more customers vote up as being helpful
87

LOOK INSIDE THE BOOK
Being seduced
Source: https://www.amazon.com/gp/feature.html/ref=amb_link_373790802_1?ie=UTF8&docId=1001119971&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-
1&pf_rd_r=9GWHAKBDZNKDQMW2WYNK&pf_rd_t=1401&pf_rd_p=1524211922&pf_rd_i=1001119971#sampling (10.06.2016)
Picture: http://i.computer-bild.de/imgs/6/6/8/2/1/1/1/Buecher-und-Amazon-Logo-658x370-1b9c296afdefa765.jpg (10.06.2016)
88
Improved search results
Amazon use for searching the
actual words from inside
participating print book – not
just the author or title
For matches inside the book,
we also display a short excerpt
and links to the page where the
query matched
To promote and merchandise
their books
Sample pages from within the
reader
Switch back and forth between
the print and Kindle samples
without leaving the reader
View books on similar topics
and previously viewed books
For
Publisher
Improved search
results
For
Customer

COLLABORATIVE FILTERING TECHNOLOGY
Influences your demand
Source: http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016)
http://www.cdkglobaldigitalmarketing.com/blog/audience-management/dealership-digital-audience/ (03.06.2016)
of Amazon.com
product sales are
generated by its
recommendation
engine
35 %
Item-to-item collaborative filtering
 recommendation algorithms to personalize
the online store for each customer
 recommendations in real time
 scales to massive data sets
 a targeted marketing tool in email
campaigns and on most of the Amazon Web
sites’ pages
Costumers can:
 filter their recommendations by product line
and subject area
 rate the recommendations products
 rate their previous purchases
 and see why items are recommended
89

COLLABORATIVE FILTERING TECHNOLOGY
Iterative algorithm provides a better approach
Picture: https://www.amazon.de/Logitech-G502-Proteus-Tunable-Gaming/dp/B00IEOEFFK/ref=pd_bxgy_147_2?ie=UTF8&psc=1&refRID=2GZX9DP2VW1CSFNNPFS8
https://www.amazon.de/Logitech-Gaming-Tastatur-Deutsch-schwarz/dp/B009J8VE36
Source: http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016)
90
1 2
2
Customer 1 buys
keyboard and mouse
Customer 2 considers only
the keyboard
Amazon knows from the
previous customers that
there exists a relationship
between the mouse and the
keyboard.
Therefore, the customer 2
receives the proposal to buy
the mouse too

PRIME AIR
The future of delivery
Picture: http://1.f.ix.de/scale/geometry/695/q75/imgs/18/1/7/3/1/4/2/0/amazon-f497c746371a99be-1dc624ad063a18c6.jpeg (03.06.2016)
https://images-na.ssl-images-amazon.com/images/G/01/112715/download/Amazon_Revising_the_Airspace_Model_for_the_Safe_Integration_of_sUAS.pdf (03.06.2016)
Source: https://www.amazon.com/b?node=8037720011&ref=tsm_1_yt_s_amzn_290791026
91
How will it work?
 Deliver packages up to five pounds in 30
minutes or less
 Flying under 400 feet and weighing less
than 55 pounds
 The drones take advantage of
sophisticated sense and avoid technology
 High degree of automation, to safely
operate beyond the line of sight to
distances of 10 miles or more Link to marketing
video:
https://www.youtube.com/
watch?v=MXo_d6tNWuY&
feature=youtu.be

AMAZON WEB SERVICES FOR BUSINESS PARTNERS
Rich Platform
Services
Higher
Development
productivity and
operational
efficiency
Horizontal
and Vertical
Infrastructure
From retailing to data space provider
Source: https://aws.amazon.com/de/products/?nc2=h_ql_ny_livestream_blu (08.06.2016)…….
92
Developing Tools
Administration Tools
User Service
Security & Identity
Analyses
Business Applications
Mobile Services
IoT
Data analyses
Database
Net-working
Saving & providing content

AMAZON WEB SERVICES OVERVIEW
For every requirement the right solution
Picture: http://www.conceptdraw.com/examples/web-architecture-diagram (10.06.2016):
93

AWS - COMPUTING AND STORAGING ELEMENTS
Amazon Elastic Compute Cloud (EC2)
 Optimize the computing capacity in the
cloud
 Support developer in cloud computing
 Virtual server
 Linux or Microsoft based
 Pay only for used hours
 Not Persistent
Example:
 Animoto uses EC2 to handle 750,000 user
within tree days
 Time Inc. migrated five global datacenter
Picture: https://aws.amazon.com/de/free/ (10.06.2016)
Source: https://aws.amazon.com/de/ec2/ (10.06.2016)
https://aws.amazon.com/de/s3/ (10.06.2016)
Amazon Simple Storage Service (S3)
 Filehosting Service
 Pay per used space
 Access over HTTP / HTTPS
 3 different saving options depending on the
lifetime of the data
Example:
 Netflix provides billions of contents with S3
 Airbnb processed 10 TB of User pictures
94

AWS - CONTENT DELIVERY AND MONITORING
Picture: https://aws.amazon.com/de/cloudfront/streaming/ (08.06.2016)
Source: https://aws.amazon.com/de/cloudfront/ (10.06.2016)
https://aws.amazon.com/de/elasticbeanstalk/ (10.06.2016)
95
Amazon CloudFront (CDN)
 Content Delivery Network
 Distribute content from EC2 & S3 globally
to reduce access time
 Access over HTTP
 Encrypted with SSL
 Pay per used areas
 Edge Locations
Amazon CloudWatch
 Monitoring Service for AWS customers
 Set Metrics
 Collect log files
 Compatible with AWS products

AWS - DATABASES
Amazon Relational Database Service
(RDS)
 simplifies the establishment, manage, and
scale in a database in a cloud
 RDS offers six database engines
 Amazon Aurora
 Oracle
 Microsoft SQL Server
 PostgreSQL
 MySQL
 MariaDB
Source: https://aws.amazon.com/de/rds/ (10.06.2016)
https://aws.amazon.com/de/dynamodb/ (09.06.2016)
http://aws.amazon.com/de/solutions/case-studies/bmw/ (08.06.2016
Amazon DynamoDB
 NoSQL Database Service
 Mobile Aplications
Example:
 BMW Group use DynamoDB for connecting
their 7-series to obtain dynamic updated
map information
96

AWS - DEPLOYMENT AND MANAGEMENT ELEMENTS
Amazon AWS Identity and Access
Management (IAM)
 Management of users and resources in an
organization
 Access Control through requesting
temporary credential in a configured period
Source: https://aws.amazon.com/de/iam/?nc1=f_m/ (10.06.2016)
https://aws.amazon.com/de/cloudwatch/ (10.06.2016)
97
Amazon Elastic Beanstalk
 PaaS for Web Application Management
 Developed with Java, .NET, PHP, Node.js,
Python, Ruby, Go & Docker
 Based on servers like Apache, Nginx,
Passenger & IIS
 Customers only upload the code
 AWS look after the right allocation of
capacity, load balancing, automated scaling
and monitoring the status
 Applications from customers could be
placed on AWS Marketplace for third
parties
Example:
 Prezi postponed two major backend
services to AWS Elastic Beanstalk

SUPPLIERS
Amazon Fulfillment Centers – the heart of the logistic chain
 Invented in the late 90s
 Algorithms brought demand and FCs seamlessly together
 Six-Sigma mixed with Toyota Production System
 SLAM-Process
 Chaotic warehousing system
 Since 2002 FIFO Principle
 Software calculates the fastest and cheapest way of delivering the order
 Click to Ship Time under four hours
Fulfillment by Amazon
 Other Providers can use the storage and delivery service
 Two day shipping for Prime provides access to Amazons most attractive customers
Optimizing the sales through delivery and storage services
Picture: https://www.amazon.com/b?node=8947548011 (10.06.2016)
Source: http://cmuscm.blogspot.de/2014/01/amazon-to-apply-demand-forecasts-to.html (08.06.2016)
Stone, Brad: The Everything Store: Jeff Bezos and the Age of Amazon, p. 188 f.
98

BACKEND
Maximum Software Backup to handle the big data
Picture: http://www.tweaktown.com/news/37403/amazon-hiring-engineers-for-designing-its-own-arm-powered-server-chips/index.html (12.07.2016)
Source: http://www.se-radio.net/2006/12/episode-40-interview-werner-vogels/ (08.06.2016)
http://queue.acm.org/detail.cfm?id=1142065 (08.06.2016)
http://arstechnica.com/information-technology/2016/04/amazon-cloud-has-1-million-users-and-is-near-10-billion-in-annual-sales/ (10.06.2016)
99
Platforms: Linux, Oracle, C++, Perl, Mason, Java, Jboss, Servlets
More than 304 million active customer accounts
More than 1 million Amazon Web Services customers
Scalability at its best
Architectural Change from two-tier monolith to a n-tier Client Server

ALEXA: SOA SERVICE-ORIENTED ARCHITECTURE
Artificial Intelligence in our homes
Picture: https://www.amazon.com/Amazon-Echo-Bluetooth-Speaker-with-WiFi-Alexa/dp/B00X4WHP5E (11.06.2016)
Source: https://developer.amazon.com/appsandservices/solutions/alexa (10.06.2016)
https://developer.amazon.com/public/solutions/alexa/alexa-skills-kit (09.06.2016)
100
Amazon Echo voice-enabled
wireless speaker
Amazon provides with Alexa
Voice Services space for
speaking developments
Alexa Skills Set gives the
opportunity for developers to
create a link between Echo
and their business
Building new skills with AWS
Lambda
What’s the weather in Munich
this weekend?
Play music by Bruno Mars
Set an alarm to eight a.m.
Wikipedia: Artificial Intelligence
Tell my the latest News
Add “pay bills” to my to-do list

LIST OF REFERENCES
 Stone, Brad (2013): Der Allesverkäufer, Campus Verlag GmbH: Frankfurt am Main
 http://www.leavesofgoldpress.com/img/look-inside1.png (10.06.2016)
 http://worldcinemaparadise.com/wp/wp-content/uploads/2015/01/Amazon-3.jpg (10.06.2016)
 http://www.bilder.keepdrum.de/etope/amazon-payment.gif (10.06.2016)
 http://7hoursalesletter.com/images/add-to-cart-big.gif (10.06.2016)
 http://www.sherrysnider.com/wp-content/uploads/2012/09/BuyNowWithOneClick.png (10.06.2016)
 http://australiandiscounts.com/wp-content/uploads/2012/05/PAyment-11.png?069dc4 (10.06.2016)
 http://i.dailymail.co.uk/i/pix/2014/12/16/2419825C00000578-0-image-a-19_1418747598914.jpg (10.06.2016)
 http://www.cnet.com/news/amazon-updates-customer-reviews-with-new-machine-learning-platform/
 http://beginnerstech.co.uk/wp-content/uploads/2015/06/how-to-get-amazon-reviews-kindle.jpg (10.06.2016)
 https://www.amazon.com/gp/feature.html/ref=amb_link_373790802_1?ie=UTF8&docId=1001119971&pf_rd_m=ATVPD
KIKX0DER&pf_rd_s=center-
1&pf_rd_r=9GWHAKBDZNKDQMW2WYNK&pf_rd_t=1401&pf_rd_p=1524211922&pf_rd_i=1001119971#sampling
(10.06.2016)
 http://i.computer-bild.de/imgs/6/6/8/2/1/1/1/Buecher-und-Amazon-Logo-658x370-1b9c296afdefa765.jpg (10.06.2016)
 http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016)
 http://www.cdkglobaldigitalmarketing.com/blog/audience-management/dealership-digital-audience/ (03.06.2016)
 http://www.cin.ufpe.br/~idal/rs/Amazon-Recommendations.pdf (05.06.2016)
101

LIST OF REFERENCES
 http://www.feihongbo.com/wp-content/images/20141120/j1jzt5g2pwy.jpg (05.06.2016)
 https://www.amazon.com/b?node=8037720011&ref=tsm_1_yt_s_amzn_290791026
 http://1.f.ix.de/scale/geometry/695/q75/imgs/18/1/7/3/1/4/2/0/amazon-f497c746371a99be-1dc624ad063a18c6.jpeg
(03.06.2016)
 https://images-na.ssl-images-
amazon.com/images/G/01/112715/download/Amazon_Revising_the_Airspace_Model_for_the_Safe_Integration_of_sUA
S.pdf (03.06.2016)
 https://aws.amazon.com/de/products/?nc2=h_ql_ny_livestream_blu (08.06.2016)
 http://www.conceptdraw.com/examples/web-architecture-diagram (10.06.2016)
 https://www.type2designs.com/why-use-amazon-web-services-aws/ (10.06.2016)
 https://aws.amazon.com/de/free/ (10.06.2016)
 https://aws.amazon.com/de/ec2/ (10.06.2016)
 https://aws.amazon.com/de/s3/ (10.06.2016)
 https://aws.amazon.com/de/cloudfront/streaming/ (08.06.2016)
 https://aws.amazon.com/de/cloudfront/ (10.06.2016)
 https://aws.amazon.com/de/rds/ (10.06.2016)
102

LIST OF REFERENCES
 https://aws.amazon.com/de/dynamodb/ (09.06.2016)
 http://aws.amazon.com/de/solutions/case-studies/bmw/ (08.06.2016)
 https://aws.amazon.com/de/elasticbeanstalk/ (10.06.2016)
 https://aws.amazon.com/de/iam/?nc1=f_m/ (10.06.2016)
 https://aws.amazon.com/de/cloudwatch/ (10.06.2016)
 https://aws.amazon.com/de/big-data/use-cases/ (08.06.2016)
 https://www.amazon.com/b?node=8947548011 (10.06.2016)
 http://www.tweaktown.com/news/37403/amazon-hiring-engineers-for-designing-its-own-arm-powered-server-
chips/index.html (12.07.2016)
 http://www.se-radio.net/2006/12/episode-40-interview-werner-vogels/ (08.06.2016)
 http://cmuscm.blogspot.de/2014/01/amazon-to-apply-demand-forecasts-to.html (08.06.2016)
 http://queue.acm.org/detail.cfm?id=1142065 (08.06.2016)
 http://arstechnica.com/information-technology/2016/04/amazon-cloud-has-1-million-users-and-is-near-10-billion-in-
annual-sales/ (10.06.2016)
 https://www.amazon.com/Amazon-Echo-Bluetooth-Speaker-with-WiFi-Alexa/dp/B00X4WHP5E (11.06.2016)
 https://developer.amazon.com/appsandservices/solutions/alexa (10.06.2016)
 https://developer.amazon.com/public/solutions/alexa/alexa-skills-kit (09.06.2016)
103

© Prof. Dr. Michael C. Hadamitzky  ADVANCED MASTER SEMINAR “LOGISTICS CASE STUDIES”
Source: http://i.huffpost.com/gen/1399535/images/o-JEFF-BEZOS-QUOTES-facebook.jpg, (06.06.2016)
104
“You can do the math 15 different ways, and
every time the math tells you that you
shouldn’t lower prices because you’re going
to make less money. That’s undoubtedly true
in the current quarter, in the current year.
But it’s probably not true over a 10-year
period, when the benefit is going to increase
the frequency with which your customers
shop with you, the fraction of their
purchases they do with you as opposed to
other places. Their overall satisfaction is
going to go up.”
Key Findings in Financials
Simon Keller (B.A.) & Benjamin Nonnenmann (B.A.)

FINANCIALS - KEY FINDINGS
 The growth in revenue is not reflected in profits
 The income increase is partially offset by investments that target longer-term strategic
goals
 The strong growth course is financed by debt and equity
 Payments from operational cash flows in the last 3 years were high enough to pay all the
expenditures for investments
 Generated cash will be invested in the further growth of Amazon  no dividends on
shares are paid
 In 2015 the operational cash flow was high enough to cover the investment expenditures
and debts repayment  Increase in cash and cash equivalents
 Most recently leading investment banks recommend to buy and overweight Amazon
shares
Rising share price and operating cash flow reflect the good development of Amazon
105

FINANCIALS – QUOTES FROM THE FINANCIAL SECTOR
Leading analysts recommend to buy Amazon shares due to good business development
Source: http://www.finanzen.net/analysen/Amazon-Analysen (11.06.2016)
106
J.P. Morgan Chase & Co.:
Recommendation: “Overweight”
Reasons:
 Quarterly numbers above
expectation
Goldman Sachs:
Recommendation: “buy”
Reasons:
 Profitability above expectations
 Accelerated growth

DEVELOPMENT OF TOTAL REVENUES 2004 TO 2015
The total revenues increase exponentially
Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/75292/umfrage/nettoumsatz-von-amazoncom-seit-2004, (30.05.2016)
𝑟𝑒𝑣𝑒𝑛𝑢𝑒 𝑔𝑟𝑜𝑤𝑡ℎ (𝑔) =
𝑅(𝑡1) − 𝑅(𝑡0)
𝑅(𝑡0)
6.92 8.49
10.71
14.84
19.17
24.51
34,20
48.08
61.09
74.45
88.99
107.01
0
20
40
60
80
100
120
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RevenueinBillionUSD
+ 1446,39%
107

REVENUES BY REGIONS IN %
59.04
14.15
9.79 10.26
6.75
61.56
13.39
9.38 8.89
6.85
65.92
11.04
8.44 7.71 6.87
0
10
20
30
40
50
60
70
USA Germany Great Britain Japan Rest of the World
2013
2014
2015
RevenueinBillionUSD
The increasing proportion of revenue in the United States is a result of the successful
business development in the US market
Source: Own diagaram based on Amazon Annual Report 2015, p. 69.
108

ESTIMATED DISTRIBUTION OF THE GROSS GOODS VALUE
0
18
123
12
30
89
0
20
40
60
80
100
120
140
2005 2010 2015
Prime members other customers
Amazon Prime is the most important marketing tool and a major success factor
Source: Own diagram based on Frankfurter Allgemeine Zeitung, in: http://www.faz.net/aktuell/wirtschaft/wirtschaft-in-zahlen/grafik-des-tages-so-wichtig-sind-prime-kunden-fuer-amazon-14291839.html, (18.06.2016)
The order of volume of a Amazon Prime member
increases on a average of 100% per customer
in the first year of membership
In 2015 Prime members were responsible for nearly
60% of the gross goods value
The average revenue per Amazon Prime member in
the United States is 1500 USD per year
In comparison the average revenue per other
customer is 625 USD per year
109
RevenueinBillionUSD

SALES PER HEADCOUNT
627,516
576,321
524,342
420,977
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2012 2013 2014 2015
In relation to total revenue the sales per headcount disproportionately dropped
Source: http://www.onvista.de/aktien/fundamental/Amazon-Aktie-US0231351067 (22.07.2016)
110
RevenueinUSD

PROFIT
Large investments are the main contributors in the resulting small profits
Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/75293/umfrage/nettoeinnahmen-von-amazoncom-seit-2004, (30.05.2016)
588
359
190
476
645
902
1,152
631
-39
274
-241
596
-400
-200
0
200
400
600
800
1000
1200
1400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Profit/LossinMillionUSD
111

PROFIT
Losses were caused by high investments in business development & new products in 2014
Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/204386/umfrage/gewinn-von-amazon-quartalszahlen/, (02.06.2016)
177
142
199
384
299
207
231
416
201 191
63
177
130
7
-274
97 82
-7
-41
239
108
-126
-437
214
-57
92 79
482
513
-600
-400
-200
0
200
400
600
Q1
'09
Q2
'09
Q3
'09
Q4
'09
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Firephone
Flop
112

REASONS FOR THE LOSS IN Q2 AND Q3 2014
Loss was caused by high investments in business development & new products in 2014
Source: cf. Handelsblatt, in: http://www.handelsblatt.com/unternehmen/handel-konsumgueter/quartalszahlen-amazon-verfehlt-geschaeftserwartungen/10883998.html, (02.06.2016)
cf. Schmieder, Jürgen, in: http://www.sueddeutsche.de/wirtschaft/verlust-trotz-milliardenumsatz-anleger-im-amazon-dilemma-1.2063058, (02.06.2016)
cf. Zeit online, in: http://www.zeit.de/wirtschaft/2014-10/amazon-onlinehaendler-verlust, (02.06.2016)
Introduction of the Firephone
Reasons for the loss in Q2 and Q3 2014:
Investment in the development of new products and services
High capital lockup
High depreciation rates on new products and services
113
2014

PROFIT FROM 2009 TO 2016
The boom of Amazon Web Services results in high profits
Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/204386/umfrage/gewinn-von-amazon-quartalszahlen/, (02.06.2016)
177
142
199
384
299
207
231
416
201 191
63
177
130
7
-274
97 82
-7
-41
239
108
-126
-437
214
-57
92 79
482
513
-600
-400
-200
0
200
400
600
Q1
'09
Q2
'09
Q3
'09
Q4
'09
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Booming
Cloud Services
114

REASONS FOR THE SUCCESS IN 2015
The boom of Amazon Web Services results in high profits
Source: cf. Amazon Annual Report 2015, p. 18ff.
Booming Cloud Services: Amazon Web Services (AWS)
Reasons for the success in 2015/2016:
Revenue growth of 64% and operating income of 604 Mio. USD
Profitable commercial transactions in North America
Record profit in quarter I 2016
115
2015
2016

MARKETING EXPENSES
263 344
482
680
1,029
1,630
2,408
3,133
4,332
5,254
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ExpensesinMillionUSDIncreasing Marketing expenses are constant in relation to revenue over the last 3 years with
apr. 5%
 Marketing expenses in relation to revenue
are constant over the last 3 years (5%)
 Main Reasons for the total increase:
– expenses for online-marketing channels and
the relating personal expenditure
 The most important marketing tool
according to the chief executive board is
Amazon Prime (and similar programs)
– leads to customer loyalty
– The relating costs for Amazon Prime are not
considered in marketing expenses
Source: Diagram based on Statista, in: http://de.statista.com/statistik/daten/studie/297849/umfrage/entwicklung-der-kosten-von-amazon-zur-auftragsabwicklung, (30.05.2016)
Source: cf. Amazon Annual Report 2015, p. 29.
116
The most important marketing tool Amazon Prime is not included in the marketing expenses

SHIPPING COST IN RELATION TO REVENUE IN %
9.3
10.3
11.6
0
2
4
6
8
10
12
14
2013 2014 2015
+ 1%
+ 1,3%
In relation to total revenue the shipping cost disproportionately increased
Source: Own diagram based on Amazon Annual Report 2015, p. 26.
117
Shippingcostinrelationtorevenuein%

Amazon Case Study

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Recently uploaded

Recently uploaded (20)

Amazon Case Study

Editor's Notes