Amazone case study
Strategy Amazon’s case
1) Explain Amazon.com’s strategy during the period 2007 to early 2010.
Founded in 1995, Amazon makes twenty years later a turnover of $ 10 000 per second with 150 million customers with nearly 200 million records, it is greater than $ 60 billion annual sales.
The Amazon company is really different with other companies because it is the only one to make an incredible turnover but no real profits since the beginning. Its strategy is to become the leader in books sector and in general on the e- commerce by proposing to the customer more choices than every other competitors. It took less than a year to Amazon to propose over one million different books. The entire company is organized around a big chess game. Every asset is a piece on the board thanks to the location of the different facilities in the world.
The Amazon strategy is based on three major pillars:
Selection
Price
Convenience.
Amazon is the largest e commerce company in the world thanks to the wild selection of products that customer can find. Amazon has known a real expansion in the world wide e commerce. At the beginning in 1995 their strategy was to become the biggest bookshop in the world. Over the year the Amazon catalogue has been developed and now it proposes a lot more products like software, materials. In fact in 2004 materiel sells have created more turnover than books.
Amazon is the only company to sell products with negative margin profits. This strategy is divided in two ways : try to attract more customers than possible by lowering the price and proposing a free and quick delivery. the negative margin is also due to the continually investment made by the company to expand their brand and propose more products every day.
Amazon tries all the time to please his customer. Indeed the vision of the company is based on « a pleased customer is a customer who is going to come back ». Many resources have been dedicated to understand the customer and his
1) Explain Amazon.com’s strategy during the period 2007 to early 2010.
Founded in 1995, Amazon makes twenty years later a turnover of $ 10 000 per second with 150 million customers with nearly 200 million records, it is greater than $ 60 billion annual sales.
The Amazon company is really different with other companies because it is the only one to make an incredible turnover but no real profits since the beginning. Its strategy is to become the leader in books sector and in general on the e- commerce by proposing to the customer more choices than every other competitors. It took less than a year to Amazon to propose over one million different books. The entire company is organized around a big chess game. Every asset is a piece on the board thanks to the location of the different facilities in the world.
The Amazon strategy is based on three major pillars:
Selection
Price
Convenience.
Amazon is the largest e commerce company in the world thanks to the wild selection of products that customer can find. Amazon has known a real expansion in the world wide e commerce. At the beginning in 1995 their strategy was to become the biggest bookshop in the world. Over the year the Amazon catalogue has been developed and now it proposes a lot more products like software, materials. In fact in 2004 materiel sells have created more turnover than books.
Amazon is the only company to sell products with negative margin profits. This strategy is divided in two ways : try to attract more customers than possible by lowering the price and proposing a free and quick delivery. the negative margin is also due to the continually investment made by the company to expand their brand and propose more products every day.
Amazon tries all the time to please his customer. Indeed the vision of the company is based on « a pleased customer is a customer who is going to come back ». Many resources have been dedicated to understand the customer and his