Strategic Management

What business is amazon in?

• It is a technology leading firm (Artificial Intelligence)
• Devices like Alexa, Fire TV Stick, Kindle
• Application like Amazon Music, Prime Video
• Amazon Care-Health Care facility- Virtual Medical Clinic

• E-Commerce
• Groceries
• fashion accessories
• Books
• Electronics

• B2B
• Data Management-AWS(Amazon Web Services – Cloud storage and Management.
• Amazon Studios
• Merchant@amazon.com
Who are Amazon’s competitors ?
Costco
Home Wholesale
– Retail, Walmart –
Depot Inc –
Logistics Retail,
Retail,
Logistics
Logistics Google –
Target –
Product,
Retail,
Cloud
Logistics
computing
eBay –
Online FedEx -
Retail, Delivery
Logistics
Competitors
Netflix –
Best Buy -
Videos,
Electronics
movies

Apple –
Product, UPS -
Cloud Delivery
computing Oracle – Microsoft
Product, Alibaba – Product,
Cloud groups – Cloud
computing Retail, computing
Logistics
Competitive Analysis-Market Share Overall Retailing
2018 Rank Company 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1 Walmart Inc 12.5 12.1 11.9 11.9 11.8 11.7 11.6 11.6 11.7 11.6
2 Amazon.com Inc 0.6 0.8 1.2 1.6 2.1 2.6 3.3 4.3 6 7.7
3 CVS Health Corp - - - - - 3.5 3.6 3.8 3.9 3.9
4 Kroger Co 2.8 2.8 2.9 2.8 2.9 3.1 3.3 3.2 3.3 3.2

5 Walgreens Boots Alliance - - - - - 2.7 2.7 2.7 2.9 2.9

6 Costco Wholesale Corp 1.8 1.8 1.9 2 2 2.1 2.2 2.2 2.3 2.4
7 Target Corp 2.7 2.7 2.7 2.7 2.6 2.6 2.5 2.3 2.3 2.3
8 Home Depot Inc 1.6 1.6 1.5 1.5 1.6 1.6 1.7 1.7 1.8 1.9
9 Albertsons Cos Inc. 0.2 0.2 0.1 0.1 0.8 0.9 1.9 1.8 1.8 1.7
10 Lowe's Cos Inc 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.4 1.4 1.4
11 Express Scripts - - - 1.5 1.4 1.4 1.4 1.4 1.4 1.4
12 Ahold Delhaize NV - - - - - - - 1.4 1.4 1.3
13 Best Buy Co Inc 1.5 1.4 1.4 1.3 1.2 1.2 1.2 1.1 1.2 1.2

14 Public Super Market Inc 1 1 1.1 1 1.1 1.1 1.1 1.1 1.1 1.1

15 Apple Inc 0.4 0.5 0.7 0.8 0.8 0.9 0.9 0.9 0.9 0.9
16 TJX Cos Inc 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9
17 eBay Inc 0.4 0.5 0.5 0.6 0.7 0.8 0.8 0.9 0.9 0.8
18 Dollar General Corp 0.5 0.5 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.8
19 Macys Inc 1 1 1 1 1 1 0.9 0.8 0.8 0.8
20 Rite Aid Corp 1.1 1 1 1 1 1 0.9 0.9 0.8 0.7
Competitive Analysis-Market Share Internet Retailing
2018 Rank Company 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1 Amazon.com Inc 12 15.3 19.7 23.3 26.7 30 34.3 39.1 45.1 52.5
2 eBay Inc 8.4 8.4 8.3 8.6 9.1 9.3 8.7 7.8 7.3 6.2
3 Walmart Inc 2.3 2.5 2.5 2.9 3 3.1 3 3.2 3.9 4.5
4 Apple Inc 3.1 3.3 3.7 4.5 4.8 4.6 4.4 3.7 3.6 3.5
5 Macys Inc 0.8 0.9 1 1.3 1.6 1.9 2.1 2 1.9 1.9
6 Qurate Retail Inc - - - - - - - - - 1.6
7 Best Buy Co Inc 1.5 1.5 1.5 1.4 1.4 1.4 1.4 1.5 1.6 1.5
8 Home Depot Inc 0.6 0.6 0.6 0.7 1 1.1 1.2 1.3 1.3 1.4
9 Wayfair LLC - - 0.2 0.2 0.3 0.4 0.7 0.9 1 1.3
10 Target Corp 0.7 0.7 0.7 0.7 0.7 0.8 0.9 0.9 1 1.1
11 Nordstrom Inc 0.5 0.5 0.7 0.8 0.9 1 1 1 1 1
12 Costco Wholesale Corp 1.5 1.4 1.2 1.1 1 1 0.9 0.9 0.9 1
13 Kohl's Corp 0.4 0.5 0.6 0.8 0.8 0.8 0.9 0.9 0.9 0.9
14 Wish - - - - - 0.1 0.4 0.7 0.8 0.9
15 PetSmart Inc - - - - - - - - 0.5 0.7
16 Lowe's Cos Inc 0.1 0.2 0.2 0.3 0.4 0.4 0.5 0.5 0.6 0.7
17 L Brands Inc - - - - 0.8 0.7 0.7 0.6 0.6 0.7
18 Gap Inc 0.9 0.9 0.9 0.9 0.9 0.8 0.7 0.7 0.6 0.6
19 Willaims - Sonoma Inc 0.8 0.9 0.9 0.9 0.9 0.9 0.8 0.7 0.7 0.6
20 Newegg.com Inc 1.8 1.7 1.3 1.2 1 0.9 0.8 0.7 0.6 0.5
 Brand Shares of Portable Players-Competitive Analysis
Brand Company 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Amazon Echo Amazon.com Inc - - - - - 0.1 7.3 12.6 27.7 34.7

Google Home Alphabet Inc - - - - - - - 0.7 9.8 10

Kindle Amazon.com Inc 3.9 13.7 23.7 17.4 18.7 20 17.5 12.6 8 6.2

JBL Samsung Corp - - - - - - - - 5 4.4

iPod Apple Inc 41.6 37.6 30.4 32.8 25.9 17.9 13.5 9 5.7 4.3

Bose Bose Corp - - - - 1.3 2.9 3.8 4.8 3.7 3.2

Ultimate Ears Logitech Int'l - - - - 1.2 2.7 3.5 4.3 3.4 3

HomePod Apple Inc - - - - - - - - - 2.5

sony Sony Corp 4.8 5.9 5.8 6.4 7.1 6.6 5.4 4.4 3 2.5

Kobo Rakuten Inc - - 1.3 2.4 4.2 4.2 3.5 2.5 1.4 1

SanDisk Western Digital - - - - - - - 1.9 1.2 0.9

Beats Apple Inc - - - - - 0.6 0.8 0.9 0.8 0.7

Sonos Sonos Inc - - - - 0.3 0.5 0.6 0.7 0.6 0.6

Samsung Samsung Corp 2.5 2.7 3 4.3 3.4 3 1.8 1.1 0.7 0.5

Nook Barnes & Corp 0.5 3.2 3.7 4.7 3.5 2 0.9 0.5 0.2 0.2
What are Amazon’s competitive advantage?
• Digital platform
• Third- Party Relationship
• Good Inventory Management
• Product Diversification
• Customer Service
• Focuses on loyal customers(Prime)
• Prompt delivery service
• Technology Lead(with cloud computing and invention of personalized digital
products(AI))
• Best Logistic Management
Is amazon likely to succeed in the future?
• Yes, Amazon can be successful if they are on the same path
discovering more and satisfying every individuals in their needs.
• The main reason is they are technological oriented and are ahead in
manufacturing the personalized devices.
• Also, they are now focusing in the B2B market; benefitting
corporates as well.
• Rather being only online, their physical pop up store also benefit
them. On expansion, they are going to benefit to larger extent and
gain revenues.
 ROE
ROE
2

1.5

0.5

0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
-0.5

-1

-1.5

-2

-2.5

-3
Revenues
Revenue
250000
232887

200000
177866

150000
135987

107006
100000
88988
74452
61093
48077
50000
34204
24509
19166
14835
3122 3933 5264 6921 8490 10711
148 610 1640 2762
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Working Capital
WC
8000

7000 6710

6000

5000

4000
3375 3238
3000
2594 2575
2433 2294 2314
1965
2000
1645
1450 1411
919 1000
1000 841
550 568
263 273 386 287
94
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
 Liquidity Analysis
Liquidity Rati o
3.5

2.5

1.5

0.5

0
1995 2000 2005 2010 2015 2020
If you are a local retailer how will you face the challenge
posted by Amazon?

• As a local retailer we will provide easy access to returns and refunds.

• Dynamic Pricing Model on the products.
• Launch a web page being more user friendly(Guided selling, deep prompting,
video explanations, better search filters)
• Gain attention through social media with mass reach.
• Sell unique or customised product.
• Have a prototype store.
• Treat Loyal customer providing them some benefits like credit score and
rewards at the end of the year.
Thank You!!