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Amazon Final 25.05

Amazon Final 25.05

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Published by Venera Turaeva

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Published by: Venera Turaeva on May 27, 2011
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Venera Turaeva Carmen Boxheimer

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History Amazon´s assortment of goods Countries Partner companies Amazon´s growth and size Influencing factors Case Amazon Today

Foundation ` start of the option: book revenue ` $ 15.7 million revenue ` sales of movies and CD´s ` software, electronics, videos, games.. ` sales volume of: $ 1 billion ` lost $ 1.4 billion and 1000 workers ` let other companies sell their products like Toys`R´Us or Old Navy ..till today: follow our presentation

1994: 1995: 1997: 1997: 1998: 1999: 2001: 2002:


com .Source: Amazon.

Italy: www.amazon. Germany: www.cn.amazon.uk.amazon.com.de.amazon.co.amazon. Japan: www.USA: www.amazon.amazon. UK: www.jp France: www.amazon.co.ca Switzerland: www.it .fr Canada: www.



Alexa. Market capitalization as of April 2011.com.Source: Amazon. Brandz. .


NWU .What factors or activities define Amazon¶s business ? Large Selection Low Overhead Convenience & Ease of use Brand Share of Mind Large Customer Database Cost Structure High Customer Service Customer Loyalty Customize Low Price Source: Graphic courtesy of the Kellogg School.

data storage on disk drives. ` . how? In other words.` Transform Amazon into a kind of 21st century digital utility. line of software code. Amazon rents out just about everything it uses to run its own business: starting from rack space of warehouses worldwide to spare computing capacity on its servers.

` ` ` ` With AWS you can requisition compute power. With AWS you have the flexibility to choose whichever development platform or programming model makes the most sense for the problems you¶re trying to solve. and secure distributed computing infrastructure has been honed for over a decade. and other services±gaining access to a suite of elastic IT infrastructure services as your business demands them.com¶s global computing infrastructure that is the backbone of Amazon. storage. you can take advantage of Amazon. with no up-front expenses or longterm commitments.com¶s multi-billion retail business and transactional enterprise whose scalable. making AWS the most cost-effective way to deliver your application to your customers and clients. reliable. . You pay only for what you use. with AWS.

recognizing sorting images and photos. It also launched a Fulfillment by Amazon. Amazon quickly launched its own search site A9. SEARCH: After watching Google quickly become dominant force on the web. WEB MEASUREMENT: Alexa Internet Services provides free Web traffic rankings and other paid services. . MEDIA: Amazon Unbox is software that lets customers download and play movies and TV shows.com DISTRIBUTION: Amazon has run ecommerce operations for the likes of Target and Borders.COMPUTING: Amazon¶s Simple Storage Service and its Elastic Computer Cloud offer startups such as photosharing site SmugMug CROWDSOURCING: Amazon Mechanical Turk.

com¶s Net Income (in million US Dollars) Year N/I 2004 588 2005 359 2006 190 Source: www.` ` ` Investors 1st worry: Low profits growth Lately profits have fallen Free-shipping offers (Amazon considers marketing in place of TV ads) Amazon.wikipedia.com .

` ` ` Spending on technology and content Hiring hundreds of engineers and programmers to develop to produce all these new services Buy more servers to run them .

Bezos¶ latest tech toys can be thought as an attempt to take their(customers) eye off the ball(from what the competition is offering) ` ` .` ` ` 1st: Amazon¶s sales growth 2nd: competition from Google 3rd : competition from social upstarts such as Youtube and MySpace Challenge is: Can Amazon catch up them? Considering all these challenges.

charge 10 cents an hour Amazon Mechanical Turk: 10% commission Customers: busineses of all kinds are ultimate targets.. ` . Warehouse: Charge merchants 45cent/square foot per month for real space in its warehouse Elastic Compute Cloud service=renting out computer power equivalent of basic server computer. starting from startup business to highly-powered customers such as Microsoft Corp. Linden Lab. Powerset Inc.` ` ` ` Storage Service: charge 15cent/GB for a month for businesses to store data and programs on Amazon¶s vast array of disk drives. etc.

five. seven years´ . Analyst Scott W.` ` ` Direct cost of providing them appears relatively low because the hardware and software are in place.Devitt notes: ³There¶s not going to be any economic return from any of these projects for the foreseeable future´ Bezos himself admits this fact. but he hopes to reap them in the long run: ³We think its going to be a very meaningful business for us one day. and in-house developed. because what we have historically seen is that the seeds we plant can take anywhere from three.

gradually adding more and more. . aim of the most Web giants like Microsoft. Bezos aim is to be ³a pretty serious dark horse´ in this race and to lead the next wave of the Internet By sharing the same idea with Youtube.the powerful layer of basic services on top of which everyone else builds their Web sites. Google etc Amazon¶s infrastructure on the cheap. So. Google. Amazon¶s prime innovation engines are its employees who work in small groups. Amazon began offering outside software and Web site developers access to selected Amazon data such as pricing trends.` ` ` ` ` Nowadays. Bezos is taking the same idea into realm of physical goods and human talent. and Amazon is to become the ³platform´ for the Web.

Powerset secretive search startup. Thus. and with Fulfillment by Amazon its serving not only upscale retailers and manufacturers. Amazon empowers new startups. Google¶s competitors.` Amazon¶s services helped many startups to get a much better and faster start. by using the Amazon site for part of the company¶s computing power could cut its first year capital costs by more than half Opened 20 distribution centers worldwide. but also small and midsize businesses. ` ` ` .

one might critize amazon. Bezos says: ³We are willing to go down a bunch of dark passages.` ` ` Due to its business diversification.com and Bezos for not having a clear aim. . and occasionally we find something that really works. investing in Bezos idea and his company require faith that there¶s a light at the end of his newest tunnel.´ But.

982 blogs ‡ Amazon earns around $5.96 billion in 2012 . it is a seamlessly integrated ecosystem ‡ up.42 billion revenue in 2011 ‡ will climb to at least $7.and download ‡ 650 e-books. ‡ 94 e-magazines ‡ 12.‡ Esteblished in 2008 ‡ Like iTunes. ‡ 167 e-newspaper.


This hardly covers the expense of dedicating a developer to the service! . ‡ Average revenue per day for Amazon is around 200 per day (10% of the requester's payment).‡ The average value of HITs posted in any day is around $2000.

com retail sites. .Amazon´ Amazon´s Brandwidth In January of 2008 Amazon announced that the Amazon Web Services consume more brandwidth (a rate of data transfer) than do the entire global network of Amazon.

Amazon´ Amazon´s Sales Revenue Source: Annual Report 2010 .



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