‘Amazon.com’ founded in 1994 by Jeff Bezos as a pure online book retailer
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Vision is becoming the place for consumers to find and discover anything they might want to buy online
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This vision of ‘breadth and selection’ takes its roots from the name of The World’s Largest River
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Amazon select the lead strategy so they conduct largescale innovative e-commerce activities
•The Retail Model
•The Market Place Model
•Integrating the Businesses
•Executing the Single-Store Vision
•The Apparel Opportunity
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In July of 1995 opened for business as ‘Earth’s Biggest Bookstore’
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In 1996 achieved $875.000 in sales , in 1997 $16 million
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Daily site visits 80.000 with 340.000 unique customers
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In 1997 went public, in 1998 stock price increased by 3700% from
$1.5 to $53
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Business to Consumer Transactions
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Ordering its books on demand from large book distributors limits
Working Capital and Warehousing Investments.
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They didn’t take responsibility, used drop shipping technique
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Problem: While they are avoiding investments on warehousing, don’t they risk the delivery of products on time and
Expanding Its Product Range
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In June 1998 started to sell music
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In Nov 1998 entered DVD/ Video Business
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During last half of 1999 launched toys, electronics, tools, software •
During 2000 launched lawn and patio and kitchen products as well as cell phones and wireless services
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Expanded overseas to UK, Germany, Japan…
Investing in Distribution
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In preperation for Christmas 1999 season, invested its warehouse and fulfillment capabilities
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Increased distribution capability in product categories where it could not rely on third-party distributors
Supporting the Business with Technology
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Innovations in Customer Facing Technology
Tabs
Web site personalization and customization
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One click buying
Stored