Amazon Case Notes

Topics:, Amazon Web Services, Jeff Bezos Pages: 6 (1136 words) Published: December 7, 2012
Amazon Case Study – Notes

1. Using appropriate theories/tools/models covered on the module:

* Critically examine Amazon’s strategic positioning on the European market. Access the extent to which value innovations contributed to Amazon’s success as a global player (35 marks)

* Evaluate Amazon’s business and corporate-level strategy - a key component to the company’s continued success, by discussing approaches adopted to establish a truly global brand (25 Marks)

* Suggest and evaluate one possible strategy for, using SAFe methodology (15 marks)

2. Critically reflect upon your learning experience by referring to the learning cycle by Race (1999) as set against the modules learning outcomes (see Module handbook).

1. $29.4bn (£19.3bn) revenue, 2008
2. 20,700 staff, 2008
3. Continued to make strategic investment decisions during the global financial crisis 4. Strategic long term view on any investment decision, no expected ROI for 5-7 years 5. Diversification from online retailer to web services and infrastructure development

The Founder –Jeff Bezos
1. 2009 Possible problem areas identified by CEO Jeff Bezos include; * Depressed consumer spending
* Is investment in technology and innovation the correct strategy for sustaining competitive advantage? * Amazons SBU structure and customer focus
* Amazons forward thinking business model (5 years or more) Is this correct? 2. Visionary. Predicted the growth rate of WWW of 2300% per month 3. Technology enthusiast from a very early age

4. Graduated highest in his class at Princeton (Summa cum Laude “with highest Honour”) 5. Based on growth figures he quit Wall Street job to pursue opportunity 6. Business started on his rented home garage

7. Books chosen product as the global market exceeded $80bn per annum 8. Seattle chosen because;
* home location of the US largest book distributer (Ingram Books) * A great resource of computer software designers
* Washington state had Less sale tax
9. Spent first 12 months developing relationships with shippers and wholesalers 10. Amazon wet live July 1995

Early Growth
1. Word of mouth and branding considered crucial to success 2. Amazon chosen after the worlds largest river expecting it to become the worlds largest bookshop 3. Clear ethos to do things as well as possible

4. No significant online competition
5. Competition with standard market share (Barnes & Noble 14%) had no online sales functionality 6. Under 12 months to be recognised and world best & largest online book store 7. Bezos completed manual work tasks personally

8. Private investment $1.2m + $8m from Silicon Valley
9. 1997 initial public offering (IPO) raised $50m

1. Diversification into selling many other products
2. Develop products and ideas the customer wants (Customer-centric) 3. Personalisation of a customers experience

Defining the Business
1. Core commitments
2. Defined sets of customers
* Consumer customers
* Seller customers
* Developer customers
3. Commitment to growth
4. Commitment to future profits
5. Prepared to divest un-profitable divisions
6. A promise of continuous improvement and measurability
7. Culture of acceptable level of risk
8. Prepared to venture into new area
9. Brand “mantra” Continually serve the customer and shape their experience 10. 3 pillar strategy
* Selection
* Price
* Convenience
* All built on innovation and future investment

1. Global matrix of wholesale\storage facilities located close to main transportation links 2. Frustration free packaging created in partnership with larger product manufacturers Staff
1. Senior management positions occupied by...
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