Case amazon

Editor's Notes

• #2: Introduce ourselves.
• #3: Amazon has a “mystery box” promotion during November. Customers would purchase a “video streaming mystery box” for $120 or a “SLR camera mystery box” for $300. Customers didn’t know what they were getting until it arrived. (the deals were usually better than average)
• #4: Pass agenda handout to class. Approx. 40 copies.
• #5: - This mission statement I believe is pretty broad and shows that Amazon is completely open to any new opportunities and Ideas.
• #6: -Amazon was originally founded in a garage in Bellevue, Washington in 1994 by Jeff Bezos. The name Amazon was actually selected by Bezos by looking through the dictionary and settled on Amazon because it was a place that was exotic and different just as he planned for his store to be. - It is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is also the largest internet based retailer in the United States. - It originally started as an online bookstore and later diversified itself to sell DVDs , CDs, apparel, furniture, food and many other products you may find at a brick and mortar store. In the first two months of business, Amazon sold to all 50 states and over 45 countries. Within two months, Amazon’s sales were up to $20,000/week. - This is Amazon’s logotype and its featuring a curved arrow leading from A to Z, representing that the company carries every product from A to Z, with the arrow shaped like a smile.
• #7: Some of Amazon’s products and services includes:   - Retail goods: With its product line including several media, apparel, baby products, consumer electronics, beauty products, gourmet food, health and personal care items, and the list goes on and on …   - One of its great services includes Amazon prime: Which is a membership offering free-two day shipping within the U.S on all eligible purchases for a flat annual fee of $99. As well as discounted one day shipping rates.   -Consumer electronics -In September 2011, Amazon announced its entry into the tablet computer market by introducing the Kindle Fire, which runs a customized version of the operating system Android for now at a low price of only $49.99.   -Prime Now In December of 2014, Amazon announced that as a benefit to prime members, parts of Manhattan, in New York city , could get products delivered to them within one hour for a fee of $7.99 or within two hours for no additional fee. 25,000 daily essential products are available with this delivery service. And now I will pass it on to Angela with the current news …    
• #8: Release Amazon Echo (Alexa) Play music, provide information, turn on light, heater At the Consumer Electronics Show 2016 in Las Vegas, Ford just announced a partnership with Amazon that will integrate its vehicles with Echo, the e-commerce company's smart-home device. That means that from the comfort of your living room, you could ask Amazon's Alexa to start your vehicle or to tell you how much charge your electric car has. Also, you could ask Alexa to open your garage as you're turning onto your street so you could cruise right in when you got home, or turn your porch lights on so you're greeted with a warm glow.
• #9: AMZN stock is at $609 and has performed better than the market by nearly 200%.
• #10: Larger than Microsoft and Target, but smaller than Apple and Walmart Amazon reinvests nearly all net income in growth and expansion. Net income is near $0 every year. Amazon has a P/E ratio of 341
• #11: Larger than Microsoft and Target, but smaller than Apple and Walmart Amazon reinvests nearly all net income in growth and expansion. Net income is near $0 every year. Amazon has a P/E ratio of 341
• #12: For comparison, Apple and Microsoft report net income of nearly 22% of sales. Retail sector has lower net income, 4% for Target, 3% for Walmart, but Amazon’s is near 0% (their business model shows all growth is reinvested).
• #13: Another slide showing that Amazon’s revenue (and operating income) are growing exponentially, even though net income remains near zero.
• #19: Supplier power: is driven by the number of key input, the uniqueness of products/services, cost of switching Buyer power: is driven by the number of buyers, the importance of each individual buyer to one’s business, cost of switching Threat of new entrant: the ability of people to enter the market Threat of substitution: the ability of your customers to find a different way of doing what you do Competitive rivalry: the number and capability of your competitors.
• #20: Porter’s competitive structure indicate strong strength for Amazon. In the macro-economic sense, for the foreseeable future is continued expected profitability for Amazon.
• #21: Target shipping is 3-5 days USPS delivers on Sunday for amazon only.
• #22: Chart: amazon office space is growing exponentially
• #23: Amazon Prime signing up more new members @ $99 than Costco is at $55.
• #24: Macro: (plus) AMZN is not as sensitive to recession as other retailers due to low prices. (minus) AMZN is in many foreign markets and there is always a forex risk. Tech: (plus) AMZN is a top place to buy new tech so it benefits. (minus) sharing culture could someday cut into all retail sales. Political/Legal: (plus) AMZN has low taxes due to nearly zero NI. (minus) As a large corporation laws and regs always pose a threat to profits. (minus) when states passed laws requiring AMZN to charge sales tax, sales in those states went down 10%. Social: (minus) go green movements don’t like wasted packaging materials or gas used in shipping. (minus) hackers are always a threat to large online companies.
• #25: Amazon is a competitor within various industries; Amazon's top competitors include EBay, Barnes & Noble, and Wal-Mart. For instance, Wal-Mart aim at offering their customers' the lowest prices available. EBay, is similar to Amazon in that consumers can go to the site to find anything they wanted and have it shipped right to their front door. Barnes and Noble also have an e-bookstore. However, Barnes and Noble do not offer the widespread selection of products that Amazon does. COST: Low-cost operations are the primary advantage that keeps it on top of its competitors. Amazon is doing is negotiating for space inside of supplier's existing warehouses. SHIPPING: Amazon has no physical stores, it has efficiency in the delivery business: 1. WH is around the country, so ship faster. Also, their robot work efficiently, rapidly, precisely. Has great deal from USPS and UPS that giving them a shipping edge
• #26: Leading E reader: Amazon has developed its Kindle e-reader In 2007 As of today, the Kindle has access to the largest selection of books including over 630,000 titles. Amazon claims that the Kindle can carry up to 3,500 books wherever you go. Kindle ebook exclusives – become one of the most important advantages of using Amazon’s ebook platform. Dedicated Kindle devices and apps, a distinctive file format, and an aggressive low-price policy. Prime membership: 30-minute early access to Lightning Deals on Amazon, and can shop on MyHabit.com. unlimited streaming video, music. free same day, 1 day or 2-day shipping for a variety of products, in addition to borrowing a free Kindle book per month free of cost. Amazon also offers buying and renting of movies and TV-shows.