Amazon, The Company That Ate the World

Elizabeth AkinsanyaSpencer Haag

• How many of you guys shop on Amazon?

• What are your impressions of the company?

• How many people in the room have Kindles?

Opening Questions

• Jeff Bezos, the CEO of Amazon, is excited to launch a new products: the Kindles. (starting at 79$)

• Four different models before introducing the Kindle Fire which is a long anticipated product that is said to compete with the iPad. o $199 less than half the price of cheapest Apple iPado Android app store, over 10,000 games, e-mail programs, shopping

guides, etc. o Amazon Web Services

Only 8 gigs of memory, but cloud servers are freeo Think of the Kindle as a "service" not a product

• Downside to Kindle Fire: doesn't have embedded cameras or a microphone, and there is not 3G cellular connection, only Wi-Fi

• Upside: Small and handy

Kindle

Kindle Fire

• This was amazons slogan in the 1990's.

• Today amazon sells millions of goods and services, from toys and high-definition televisions to server space for other Internet companies and digital reading devices for book lovers

• Borders could not compete and went out of business

• Best Buy watched Amazon undercut and commoditize whole product categories, so they are now trying to shrink store square footage

"Earth's largest bookstore"

• Company keeps learning and growing. Jeff Bezos is known as a hyper-competitor.

• Websites thats have matched Amazon in selction, price, and customer serveice- Zappos, Diapers.com o Bezos quickly acquired

• (In 2011) Amazon is reporting 50% growth in quarterly revenue and could reach 50 Billion in sales for the year o This growth took Walmart almost twice the amount of time

- 33 years

• Green Apple Books, a 44-year-old bookstore in San Francisco, Amazon has lowered the prices in the book business beyond his ability to match them

Rivals

• Major chains like Toys “R” Us, Sports Authority, and Radio Shack have teamed up to combat Amazon’s might, forming a free shipping program called ShopRunner that, like Amazon Prime, also offers free two-day shipping for $79 a year.o Now used by many other companies: NFL.com, MLB.com, Calvin

Klein, PetSmart, and many others

Rivals

• Huge opportunity to sell new device AND entice users to buy more “stuff”

• Summer ‘11: 20% all e-commerce sales from tablets. Nearly 60% tablet owners use for shopping

• Used to see spikes in traffic during work day lunch hours. Now more evenly distributed thanks to tablets

Tablets

• Tablet-optimized shopping app pre-installed

• 30-day free trial of Amazon Prime

• $79-a-year two-day delivery program tends to convert members into Amazon addicts

o Triple or even quadruple amount spent on site

o Features a "Lending Library"- with Amazon Prime, Kindle owners can choose from more than 270,000 books to borrow for free with no due dates

• Own appstore for Android devices

Shopping Tricks

• Introduction of a new product: Kindle Paperwhite o World's most advanced e-reader- higher resolution, higher contrast

touchscreen with built-in light and 8-week battery life o Patented built-in light that illuminates the screen

Kindle Paperwhite 3G- $179. Kindle Paperwhite $119

• Kindle Fire: Now has a front facing camera and has 3G capabilities.

www.amazon.com/gp/product/B008GFRBBW/ref=fs_jw

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