a strategy analysis - … filea strategy analysis . ... 1.market structure of aws a. target...
TRANSCRIPT
![Page 1: A Strategy Analysis - … fileA Strategy Analysis . ... 1.Market structure of AWS a. Target customers b. Competitors ... Positioning (cost leadership + differentiation)](https://reader031.vdocuments.us/reader031/viewer/2022022522/5b2f354c7f8b9a594c8e015a/html5/thumbnails/1.jpg)
Ge Yifan (Cindy) | Nguyen Quynh Thu (Rosanna)
A Strategy Analysis
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What is ?
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Key milestones in Amazon history
1995
2007
2006
2003
1998 1994
Founded by Jeff
Bezos. Named
Cadabra
Changed
name to
Amazon
Expanded to music and
DVD/video sales
Acquired Internet Movie
Database
Launched
A9.com, a search
engine
2000
Changed logo to the
current one
Launched AWS
- Elastic Compute
Cloud (EC2)
- Simple Storage
Service (S3)
Kindle
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2016
2013
2014
2015
2010
Started Amazon Studios Beta test of Amazon Go
Operated Amazon Wind and
Solar Farms
Introduced Fire TV
device and Fire Phone
Began producing movies
for theaters
Introduced Amazon
Launchpad for startups
Began offering
Amazon Art logic
services to other
websites
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Keys to ’s success
Expanding to many industries mostly
by acquisition of other companies Exploiting crowdsourcing
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About Bezos - CEO
- Fun fact: Easily explode at
employees
- Customer-oriented
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About Bezos - CEO
- Fun fact: Easily explode at
employees
- Customer-oriented
- Dares to think, dares to do
Amazon’s profit/loss
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- Fun fact: Easily explode at
employees
- Customer-oriented
- Dares to think, dares to do
Amazon’s profit/loss
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Stock price soared from around $300 in 2014 to nearly $1,000 in 2017
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About Bezos - CEO
- Fun fact: Easily explode at
employees
- Customer-oriented
- Dares to think, dares to do
- Has long vision over business
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Most of Amazon’s profit comes from AWS in Q2 2017.
AWS is facing fierce competition
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Agenda
1. Market structure of AWS
a. Target customers
b. Competitors
c. Positioning strategy
2. Issues & challenges (SWOT analysis)
3. Recommendations
4. Key takeaways
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Demographic ( who they are)
• Different industries
• America, Asia, Europe
• Startups, enterprises
Psychographic (how they think)
• Positive to change
• Market oriented
Behavior (what they do)
• Data storage
• Run new applications or tests
Environment (where they are)
• High technology
• Quick change
• Fierce competition
Customer profile (AWS)
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● Infrastructure as a service Data storage
● Platform as a service
Run application tests
● Software as a service
ERP/CRM applications
photo/video sharing
Competitor analysis (AWS)
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dominance
Dark horse
Strong competitor
Competitor analysis (AWS)
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Large scale of products and service
AWS & GCP & Azure
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Revenue brought in by
early customers
More enterprise features
and higher-performance
services
Attract larger
apps or
companies
Higher profit
Virtuous cycle
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Revenue brought in by
early customers
More enterprise features
and higher-performance
services
Attract larger
apps or
companies
Higher profit
Virtuous cycle
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Large scale of products and service
Easy to use(machine learning),
brand image, technology,
Enterprise-know-how, hybrid
cloud,discount on other products
AWS & GCP & Azure
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Company Pricing Model
Per hour – rounded up On demand, reserved, spot
Per minute – rounded up
(minimum 10 minutes) On demand – sustained use
Per minute – rounded up
commitments (pre-paid or
monthly)
On demand – short term
commitments (pre-paid or
monthly)
Pricing and model
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● Higher-end cloud infrastructure capacity
● Faster database than Amazon Cloud Databases
• Hire employees from competitor
• Different types of cloud (hybrid cloud, private cloud)
“Oracle is the only vendor that provides a complete, integrated stack for the cloud”
- Mohindroo -
Oracle
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AI (artificial intelligence)
● Faster computing capacity
● Analytics technology
● Machine learning
● Cognitive computing
Artificial intelligence
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Issues & challenges (SWOT analysis)
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
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Recommendations
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
1. Have a good supply chain info systems in which customers’ complaint can go
straight to the vendors
2. Make sure the vendors are capable of dealing with emerging problems in short
time
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Recommendations
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
3. Slow down the acquisition pace or Make sure all sub-companies can integrate
well
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Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Strengths Weaknesses
Opportunities Threats
● Technical know-how
● Capital resources
● Strong brand with history
● Product portfolio
● Targeting
● Positioning (cost leadership + differentiation)
● Not fully integrated because the services
are offered by different vendors
● Increasing number of tech-savvy startups
● Growing market for cloud computing
● Strong competition
● Fast acquisition pace -> management,
integration, capital resource
Recommendations
4. Keep up to the latest trends and invest wisely
5. Pay more attention to attracting startups and SMEs
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Key takeaways
Key to Amazon’s success:
● Be the innovator or at least keep up with the latest trends
● Exploiting crowdsourcing
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Key takeaways
Recommendations:
1. Have a good supply chain info systems in which customers’ complaint can
go straight to the vendors
2. Make sure the vendors are capable of dealing with emerging problems in
short time
3. Slow down the acquisition pace or Make sure all sub-companies can
integrate well
4. Keep up to the latest trends and invest wisely
5. Pay more attention to attracting startups and SMEs
![Page 29: A Strategy Analysis - … fileA Strategy Analysis . ... 1.Market structure of AWS a. Target customers b. Competitors ... Positioning (cost leadership + differentiation)](https://reader031.vdocuments.us/reader031/viewer/2022022522/5b2f354c7f8b9a594c8e015a/html5/thumbnails/29.jpg)
References
Hartmans, A. (2017). 15 fascinating facts you probably didn't know about Amazon. [online] Business Insider. Available at:
http://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4/#amazon-wasnt-the-companys-original-name-1
[Accessed 6 Oct. 2017].
Gershgorn, D., Griswold, A., Murphy, M., Coren, M. and Kessler, S. (2017). What is Amazon, really?. [online] Quartz.
Available at: https://qz.com/1051814/what-is-amazon-really/ [Accessed 8 Oct. 2017].
Google. (2017). amazon stock price - Google. [online] Available at:
https://www.google.com.hk/search?q=amazon+stock+price&spell=1&sa=X&ved=0ahUKEwiRy9bo6OfWAhWJW5QKHUf2A
AQQvwUIIygA&biw=1280&bih=615 [Accessed 10 Oct. 2017].
Sherman, E. (2015). 20 years of Amazon's expansive evolution. [online] Cbsnews.com. Available at:
https://www.cbsnews.com/news/20-years-of-amazons-expansive-evolution/ [Accessed 6 Oct. 2017].
Statt, N. (2016). Amazon, once a big spender, is now a profit machine. [online] The Verge. Available at:
https://www.theverge.com/2016/7/28/12313526/amazon-q2-2016-earnings-report-aws-cloud-profit [Accessed 10 Oct. 2017].
Streitfeld, D. (2014). Amazon’s Investments Are Piling Up, as Big Losses. [online] Nytimes.com. Available at:
https://www.nytimes.com/2014/10/24/technology/amazon-loss-quarterly-earnings.html [Accessed 10 Oct. 2017].
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Thank you Q&A