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AbhilashAlhad JuvekarAravind Kulasekhar VankayalaBinny SodhiKrishna SheshadriMohi Shukla
Vision / Mission:Our vision is to be earths most customercentric company; to build a place wherepeople can come to find an...
CORE VALUES: Customer Obsession Innovation Bias for Action Ownership High Hiring Bar Frugality
GENERAL ENVIRONMENT
Government                PoliciesEnvironmenta  l Factors                  Labour Laws                 General            ...
SPECIFIC ENVIRONMENT
Competition     Customer                              Third Party      Support                               Linkages     ...
Porters Five Forces
AMPLE                         SUBSTITUTES IN THREAT OF NEW             THE MARKET                  INTENSE    ENTRANTS    ...
a) Threat Of NewCompetition
SWOT ANALYSIS
Favorable                      UnfavorableI   Strengths:                        Weaknesses:n   Strong Brand Name          ...
CURRENT STRATEGY
STRATEGY: New    management discipline to be incorporated  through an ongoing process of innovation and  renewal. . At i...
Extracting new potential markets: In 2002 Amazon launched a web services platform within  five years the site used by Ama...
RECOMMENDED STRATEGIES
RECOMMENDED STRATEGIES:• Strength: Strong Brand Name• Opportunity: Extensive Community of Buyers• Strategy: Amazon is a bi...
RECOMMENDED STRATEGIES (CONTINUED)   Weakness: Low Finance Performance   Threat: Removal of tax-benefits on online sale....
• Weakness: No touch and feel of the product• Threat: Competition from brick and mortar companies• Strategy: Evolution of ...
ANY QUERIES?         -THANK YOU
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Amazon

Organisation Theory and Practice

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Amazon

  1. 1. AbhilashAlhad JuvekarAravind Kulasekhar VankayalaBinny SodhiKrishna SheshadriMohi Shukla
  2. 2. Vision / Mission:Our vision is to be earths most customercentric company; to build a place wherepeople can come to find and discoveranything they might want to buy online.
  3. 3. CORE VALUES: Customer Obsession Innovation Bias for Action Ownership High Hiring Bar Frugality
  4. 4. GENERAL ENVIRONMENT
  5. 5. Government PoliciesEnvironmenta l Factors Labour Laws General Environment Socio- Economic Technological status Shifts Consumer tastes
  6. 6. SPECIFIC ENVIRONMENT
  7. 7. Competition Customer Third Party Support Linkages Specific Environment InvestmentAdvancement Environmen s in WWW t Internet Delivery Infrastructure Mechanism
  8. 8. Porters Five Forces
  9. 9. AMPLE SUBSTITUTES IN THREAT OF NEW THE MARKET INTENSE ENTRANTS COMPETITION, 1. Competitor retail BOTH ONLINE 1. Low Entry portals like EBay AND OFFLINEBarriers allows easy etc. entry of other 2. Online portals of players existing retail 1. Retail stores like 2. Existance of outlets like WalMart/Tesco/Relia Specialized walmart.com nce Fresh competitors. 2. Mom and Pop3. Ease of entry and stores inverstment 3. Government Regulation SUPPLIER BARGAINING Amazon POWER CONSUMER BARGAINING 1. The POWER manufacturerscontrol the supply to 1. Availability of Amazon. similar products at a cheaper price 2. Other third-partyservice providers like 2. Consumer delivery, cash Switching costs collection can also are low impact Amazon
  10. 10. a) Threat Of NewCompetition
  11. 11. SWOT ANALYSIS
  12. 12. Favorable UnfavorableI Strengths: Weaknesses:n Strong Brand Name Low Finance Performancest Strong Infrastructure Lack of language specifice High Quality Mgmt team websiter Customer Service Support Risk of intro. of wrong newn Developed and Upgraded Tech. categoriesa Free Shippingl Shipping costs (high volume / weight products)E Opportunities: Threats:x Growth of Internet Users Competitiont Construction of community of Weak Economic Conditione buyers Low Entry Barriersr Taxes prohibition Segments of populationn E-commerce Expansion uncovered.a Several product categories withl high penetration
  13. 13. CURRENT STRATEGY
  14. 14. STRATEGY: New management discipline to be incorporated through an ongoing process of innovation and renewal. . At its roots Amazon is built to transform. Embracement of transformational growth in its white space. Have a viable and innovative business model built around a market-changing customer value proposition and a radical profit formula. Transformed its business from direct sales to a sales-and-service model, aggregating many sellers under one virtual roof and receiving commissions from the other companies sales.
  15. 15. Extracting new potential markets: In 2002 Amazon launched a web services platform within five years the site used by Amazons web-services platform had grown into the seventh-largest in the world. And Amazon kept going. Continuously renovating the company and its existing products. Company seized its white space when it devised a new value proposition, offering a commission-based brokerage service to buyers and sellers of used books. Moved into its white space again by developing a model to serve an entirely different customer: third-party sellers.
  16. 16. RECOMMENDED STRATEGIES
  17. 17. RECOMMENDED STRATEGIES:• Strength: Strong Brand Name• Opportunity: Extensive Community of Buyers• Strategy: Amazon is a big brand as far as e-commerce is concerned.To sustain that image among new age internet users and to build anextensive community of buyers which we see as a futureopportunity for Amazon. Social networking sites likefacebook, twitter should be leveraged in creating anextensive community of buyers.• Strength: High Quality Management Team and Upgraded Technology• Opportunity: Growth of Internet users• Strategy: Asian countries like India as per our external opportunitiesanalysis will see the maximum number of new internet users over the nextdecade. So collaborating with Internet providers and providing insight topeople through various media to shop using internet and introducinglanguage specific websites will facilitate shopping for the local customers.
  18. 18. RECOMMENDED STRATEGIES (CONTINUED) Weakness: Low Finance Performance Threat: Removal of tax-benefits on online sale. Strategy: One of the major strengths of Amazon is the pricing of its offerings thanks to the tax benefits to internet shopping endorsed by many governments. Ethical pitching for those governments across its markets which extend tax freedom for sale of products through internet should also be a long term strategy. Weakness: Risk of Introduction of wrong products/categories Threat: Competition from mushrooming companies Strategy: A wrong product introduced in the market will take a strong beating on the customer’s loyalty on Amazon. Though, Amazon has recently seen success with its kindle e-reader there always exist a risk of introduction of a wrong product. There should be a increase in spend on Marketing Research and introduction of new products should be done with utmost care taking inputs from the research outcome.
  19. 19. • Weakness: No touch and feel of the product• Threat: Competition from brick and mortar companies• Strategy: Evolution of consumer behavior, combinedwith the advance and affordability of technology is startingto pit Amazon against brick and mortar mass retailer likeWal-Mart. As a backup plan to counter a situation ofimposition of taxes on internet shopping in the near futurewhich may force it to lose the price war in comparison toWal-Mart(one of its biggest competitors) ,Amazon will haveto proactively invest for development of company centricworld class supply chain management, warehousing anddistribution logistics.
  20. 20. ANY QUERIES? -THANK YOU

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