amazon, the company that ate the world elizabeth akinsanya spencer haag
Post on 28-Dec-2015
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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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