amazon (july 2012)

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This presentation reviews the business model of Amazon, the practices where it is best-in-class and its opportunities for improvement in terms of customer experience.

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  • 1. Just a digital shop 2

2. or a digital empire ?3 3. All these companies belong to Amazon 4 4. Amazon Web Services drives these companies 5 5. Worldwide salesCAGR = 32 %Year 2001Year 2011$ 3.123 m $ 48.077 mOtherOther 2% 3% EGM 19 % Media 37 %EGMMedia 60 %79 %Media Books, music, movies, games,EGM Electronics and general merchandiseOther Amazon Web Services,6 6. Amazon is a giant 40 % growth in 2011 3x$ 48.000 m of sales 1,25 x$ 90.000 m of market capitalization 2x152 m of customers2x51.300 employees25 x$ 189 of sales per unique user24 x7th site with the most unique users before1st retail brandbefore 7 7. Mission, vision and values Mission We seek to be earths most customer-centric company for four primary customer sets: consumers, sellers, enterprises and content creators. Vision We seek to be build a place where people can come to find and discover anything they might want to buy online and enjoy the best shopping experience on the internet. Values Customer obsession.Ownership. Innovation.High hiring bar. Bias for action. Frugality.8 8. Core value propositionAmazons corevalue propositionis not disruptive.Amazon perfectly understood theold economy retail cocktail. 9 9. Amazons virtuous cycle andits strategic imperative Get big fast by investingaggressively in new productcategories and new businesses, by spending money on brandawareness and by getting newcustomers.10 10. A picture is worth a thousand words 11 11. Marketing strategy Objectives Key actionsIncrease customer traffic.Pay per click advertising.E-mail marketing.Create awareness of ourAffiliate marketing.products and services.Continual web site improvement.Streamlined ordering process.Promote repeat purchases. Personalization and customization.Customers opinions and co-creation.Customer service.Develop incremental product andPartnerships and web services.service revenue opportunities.Strengthen and broaden theOnline advertisement.Amazon brand name.Offline advertisement. 12 12. Best practices where Amazon is best-in-classLarge selectionLow prices OtherService quality retailers Navigation experience Users co-creation13 13. Best practices where Amazon is best-in-class $ 73,54Large selection In stock. Sold by Car Toys. SuggestedretailerLow pricesService quality Navigation experience Pricecompetition Users co-creation14 14. Best practices where Amazon is best-in-classLarge selection Free shippingin two or three daysLow pricesService quality Navigation experienceReturnsand refunds Users co-creationare easy15 15. Best practices where Amazon is best-in-class $ 59,00 StreamlinedIn stock. Sold by LiveSpan. ordering processLarge selectionLow prices PersonalizedrecommendationsService quality Navigation experience Users co-creation16 16. Best practices where Amazon is best-in-classLarge selection Customers opinionsLow pricesService quality Helpful ? Navigation experience Users co-creation 17 17. Best practices where Amazon is best-in-classRate a product or create product reviewsLarge selectionLow pricesService quality Navigation experience Users co-creation Comment on other users reviews18 18. Best practices where Amazon is best-in-classLarge selectionLow prices Top reviewerService qualityranking Navigation experience Users co-creation 19 19. Best practices where Amazon is best-in-class CustomerdiscussionsLarge selectionLow pricesService quality Navigation experience Users co-creation20 20. Opportunities for improvement in termsof customer experience Length and design of the pages containing the informationabout the products. 21 21. Opportunities for improvement in termsof customer experience Purchasing process when shopping in anAmazons website that is not intended forthe country where the user lives.Calle Mara de Molina, 11 - 28006 Madrid - Spain 22 22. Opportunities for improvement in termsof customer experience It is not possible to searchThe search optionsin multiple departmentsare too basic. Limited sortingThere are no and filteringadvance optionssearch tools23 23. Functionality that we would add Wider interaction andinterrelation with social networks to create a largervalue added community.24