Case study of E-business

Submitted by
Muhammad Gias uddin
mdgias89@gmail.com
 Background

 Amazon worldwide online market place

 Start 5 July ,1994
 Funder Jeff Bazos
 Place Seattle ,Washington

 Amazon is the largest online market place in the world by total sell and market capitalization. Fast start
bookstore and later diversifying to sell DVD, VIDEO ,CD ,SOFTWER,GAMES ,MP3 and the company
also consumer product ,food ,furniture

 2015 Amazon surprised Wal-Mart as the most valuable retailer in the united states by market capitalization


 CEO of amazon.com
A short history of Amazon's growth and business model evolution
and these offices

to its current Seattle headquarters

Amazon performs exceptionally efficiently measured against revenue per visitor, which is
one of the key measures for any commercial website, whether it's a media site, search engine,
social network or a transactional retailer or offers travel or financial services. Of course profit
per user would be quite different due to the significantly lower costs of other .com like
Facebook and Google.
 (A)Strategies &policies
 Customer loyalty
 Amazon rich and interactive website
 1-click@technology
 Real time shipping tracking data available
 IT capabilities
Marketplace Chapter 2
Marketplace analysis for e-commerce
Amazon performs exceptionally efficiently measured against revenue per visitor, which is one
of the key measures for any commercial website, whether it's a media site, search engine, social
network or a transactional retailer or offers travel or financial services. Of course profit per user
would be quite different due to the significantly lower costs of other .Coms like facebook and
google
Macro-economic
Economic : currency fluctuation: some countries where currencies is high with
dollar , it may bring additional cost to the company and maybe some product price
increases ,effecting the main cost and price
A. Economic stability of most developed markets (opportunity)
B. Increasing disposable income in developing countries (opportunity)
C. Potential economic recession of China (threat)
 In June 2017, US President Donald Trump spoke of a necessity to introduce ‘internet
tax’, specifically referring to Amazon. Analysts note that “one possibility is that Mr.
Trump was thinking of a proposal to allow state governments to force internet retailers
to collect sales taxes from their customers”. This instance can be referred to as an
illustration of potential implications of economic factor, namely taxation on Amazon.
Political AND legal:
 Political :Trade protectionism in the USA from the trump administration currently threatens the
existence of foreign firms in the country (Diamond, 2017). While Amazon is an American firm, a
considerable amount of its goods come from overseas, and thus its operations may be threatened
by a possible reduction in the number of foreign imports or tariffs to foreign imports.
 In light of Brexit negotiations, the British and American government are currently holding
discussions about potential trade deals between the two countries (Gilchrist, 2017). This could
serve to ease Amazon's operations in the UK as an American firm, potentially reducing import
taxes and resulting in less regulations.
A. Political stability of developed countries (opportunity)
B. Governmental support for e-commerce (opportunity & threat)
C. Increasing governmental efforts on cyber-security (opportunity)

 Legal : Selling overseas will require international laws for company. Most items need separate
laws which depend on shipping such as alcohols and chemicals. When dealing with multimedia,
the internet will give you certain rights to media. Hollywood is fighting sales and giving copies of
sale products. This will bring ease of making duplicates.
A. Rising product regulation (opportunity)
B. Easing of import and export regulations (opportunity)
C. Rising environmental protection regulations (opportunity)
Socio-cultural:
In some areas in the world the internet is restricted due to religious and ethical factors.  This will
prevent sales in these regions for Amazon.

Internet growth rate is outstanding.  With the amount of internet users increasing every year,
Amazon has the opportunity to increase their market share.

Social networks are booming.  Sites like Facebook and Twitter are visited by billions of people
every day.  These sites also offer marketing directly on their site.  Amazon can increase its
awareness through social network marketing
A. Increasing wealth disparity (threat)
B. Increasing consumerism in developing countries (opportunity)
C. Increasing online buying habits (opportunity)
Technological:
 Today, our employees work in technology enabled environments where the technology is
used to improve processes and assist them doing their daily role, ranging from random
stow and pick through to box sizing algorithms, software that determines the shortest,
most efficient walking route from one place to another and the SLAM process (Scan,
Label, Apply, Manifest), which was developed by Amazon and remains a revolutionary
innovation for customers because it speeds up the packing process and helps ensure
accurate deliveries

A. Rapid technological obsolescence (threat & opportunity)

B. Increasing IT efficiency (opportunity)
C. Increasing cybercrime (threat)
 B2B and B2C characteristics
Characteristic
Proportion of adopters with
access
Complexity of buying
decisions
Channel
Purchasing characteristics
Product characteristic
B2C
Low to medium
Relatively simple – individual
and influencers
Origination site :
www.amazon.com
Consumer marketplace :
www.kelkoo.com
www.pricerunner.com
Low value, high volume or
high value, low volume. May
be high involvement
Often standardised items
B2B
High to very high
buying process involves users,
specifies, buyers, etc.
Origination site :
www.dell.com
Consumer marketplace :
www.covisint.com
Similar volume/value. May be
high involvement. Repeat
orders (rebuys) more common
Standardised items or bespoke
for sale
Amazon operates ten online marketplaces (websites) worldwide, allowing you to grow your
business internationally independent of where your business is physically established. With
Amazon, you can quickly grow your business in other countries, introducing your brand and
products to millions of customers in Amazon's marketplaces. Amazon operates these
marketplaces:
 Disintermediation of a consumer distribution channel showing

Amazon.com Autobytel.com Orbitz.com Dell.com

Book publisher Auto Commercial Dell Inc

manufacture airline

Book wholesaler Auto dealer

Virtual Retail Virtual Broker Agent

Consumer Consumer Consumer Consumer

 Google Trends – useful for consumer interest in products

Google trend data suggests that the search term “Google Home” has been on par
or higher than searches for “Amazon Echo” since January 9th. There were a few
days in January and early February when “Google Home” received big search
boosts and since that time the trend lines have been nearly identical. By contrast,
the term “Google Assistant” is searched four times more frequently than
“Amazon Alexa” today. Right after Mobile World Congress the disparity was
10x.
E-marketing

 It freely proffers products and services.

 It uses a customer –friendly interface.
 It scales easily from small to large
 It user existing communication systems
 It user universal behaviors mentalities
Thank you