1. Presented By:
Rhythm
Raghu
Ravinder Singh
Taranjeet kaur
Venus

2. Online retail shop

3. A little about us…
Founded in 1995; Started selling books online and
now operate Web sites that offer various products
and services, which include:
music, DVDs, videos, electronics, camera and
photography, clothing apparel, shoes, etc.
Features include: one-click shopping, customer
review and e-mail order verification.
Headquarters is in Seattle (Washington) . It has
six global websites to serve domestic customers in
the US, the UK, Germany, France, Japan and
Canada

4. History
 In May 1997 Amazon.com completed its initial public
offering (IPO).
 In the same year,1997, they signed advertising and
promotional agreement with – America online, yahoo
, Netscape, geocities…
 April 1998 the company acquired online bookstores in U.K.
and Germany : first international expansion
 In 2000 Amazon.com launched in Japan and France

5. Vision Statement
 Our vision is to be Earth's most customer centric
company; to build a place where people can come to
find and discover anything they might want to buy
online.

6. Mission Statement
 The company’s six core values: customer obsession,
ownership, bias for action, frugality, high hiring bar,
and innovation. The company motto: ‘Work Hard,
Have Fun, and Make History’.

7. Where we stand today..
most frequent used web site.
Largest internet-based sellers.
Offering over 4.7 million discounted books .
CDs, DVDs & videos.
 computer games.
audio books and video tapes .
85% share of online book sales .
six million customers in more than 160 countries.

8. Historical Product Introduction and
Geographical Diversification

9. AMAZON.COM Business Model
Shopping convenience
Creates value for costumers
( from home to office)
Decisions-enabling
information
by offering:
Discounting Prices
Ease of purchase
A Wide Selection
Speed
Reliability

10. S W O T
• Strength • Weakness • Opportunit • Threat
y

11. STRENGTHS:
 Strong management team
 Strong customer service support
 Up-to-date technology and software
 High brand name recognition
 Strategic alliances
 Increased revenue from international segment
 High inventory turnover

12. WEAKNESSES:
 Accumulated deficit of $3 billion
 Operating losses
 Interest payments on debt issued
 High inventory risk – seasonality
Breach of customer confidential
information

13. OPPURTUNITIES
 Construction of an extensive community of buyers
 Internet taxes prohibited by the Internet Tax Freedom
Act (1998) and its extensions (2001 and 2003)
 Growth of internet users in the next five years,
predominantly in the international market
 E-commerce expansion in Asia and the Pacific
 Several product categories with high penetration of
retail on-line sales
 13% jump of Latinos going online in 2003 in the US
since 2001

14. THREATS:
eBay, Barnes & Nobles, and Wal-Mart
Possible rejection to on-line sale in
international markets if new taxes (Value
Added taxes: VAT) in products are levied
Population segment not targeted to on-line
sales due to their lack of internet access
Competition will increase due to the low
barriers to entry in the market: offline
companies are coming online

15. BCG Matrix
Relative Market Share Position
High 1.0 Medium .50 Low 0.0
High Stars Question Marks
+20
Domestic International
Med
0
Industry
Sales Cash Cows Dogs
Growth
Rate
Low
-20

17. STRATEGY : CATEGORISATION of product , discounted
prices, Can post and read the reviews about product
Few examples:
 A costumer can listen to the sample music before purchasing it.
 Can compare his products with various other available products.
TARGETING : internet users, who do not have time to go to
retailers .
Few example:
 Business professionals working in MNCs with odd shift timings
POSITIONING : order anything by just one click and
costumer will receive their products at their door step.
Few examples:
 costumer can purchase anything from anywhere

18. Business Strategy
 Electronically communicated with the costumers
 Send a confirmation message at the time of order
received and during processing.
 Costumers can track delivery status online using a key
code number.

20. C- CUSTOMER NEEDS
 Customer-centric environment
 Internet is 24/7 available medium
 Information can be downloaded
immediately
C- COST
Discounted price- due to vertical
integration
Cost reduction through e-marketing

21. C-CONVENIENCE
Order from home or office
Delivery at door step
One click shopping
C-COMMUNICATION
Informing customer at every step
 Answering emails within 24 hours
 Virtual communities

22. COMPETITORS
BARNES AND NOBLES.COM
Strategic alliance with German media- Bertelsmann
Direct relationship with some 20,000 publishers and
distributors
750,000 titles available for same day shipping
But have only 10 percent market value of amazon.com

23. FEW OTHER COMPETITORS
 Retail stores
 E-bays
 Wal-Mart
 Letsbuy.com

24. CUSTOMER RELATIONSHIP
MANAGEMENT
 Greets customer by name
 Recommendation based on past behavior
 Sort order by departments(segregation)
 Delivery confirmation
 Customer feedback process
 Respond quickly to customer problem & queries
 Complaint management and resolution policies
 Training processes at different levels

25. Questions
Approximately a quarter of Amazon.com’s sales are
to overseas costumers. How could amazo.com
structure its costumer service department to better
serve an increasingly international and
culturally/linguistically diverse costumer base?
Should Amazon.com have “country specialists” for
market where it lacks an overseas presence? Why or
why not?

26. Answers
 Quarter of the total revenue come from the international
market
 Needs and wants of costumers varies from place to
place(according to social, cultural and environmental
conditions)
SUGGESSIONS :
 Should have separate head offices for different countries
 Sufficient amount of complaints and service centers
according to geographical areas
 Different sets of complaint service centers for different
languages
 Instead of IVR based complaints system, manual costumer
care executive should be there.

27. How could Amazon.com better measure costumer
service? How could the costumer service manger
implement a continuous improvement process?
What companies would you benchmark and how?

28. Answers
 24/7 toll free number for both international and
domestic costumer
 On job and classroom training to the employees for
handling different types of costumer
 On the spot repair facility
 IVR(Integrated Voice Response) can be replaced by
manual C.C.E(costumer Care Executive)
 Bench mark companies DELL