AMAZON

Stephen KimballCharles Golden

Christen Bergstresser

MGT590 - Lippert

BACKGROUND

• 1995 Founded• 2000 E-Commerce Platform• 2006 Web Services• 2007 Kindle

MISSION STATEMENT

Amazon.com strives to be Earth’s most customer-centric company where people can find and discover virtually anything they want to buy online. By giving customers

more of what they want – low prices, vast selection, and convenience – Amazon.com continues to grow and

evolve as a world-class e-commerce platform.

STRATEGIC EVOLUTION

Intended StrategiesVs.

Emergent Strategies

STAKEHOLDERS

BOARD OF

DIRECTORS

Jeffery P. Bezos, CEO, President and Chairman of the Board

Tom A. Alberg, MadronaVenture group

John Seely Brown, Visiting Scholar and Advisor to the

Provost at USC

Wiliam B. (Bing) Gordon, Kleiner Perkins Caulfield &

Byers

Jamie S. Gorelick, Wilmer Cutler Pickering Hale and

Dorr, LLP

Judith A. McGrath, Astronauts Wanted, *No

Experience Necessary

Alain Moiné, Ingram Micro, Inc

Jonathon J. Roberson, Former Chairman & CEO,

Palm, Inc.

Thomas O. Ryder, Former Chairman & CEO, Readers

Digest Association, Inc.

Patricia Q. Stonesifer, Martha’s Table

ORG CHART

Jeffery P. Bezos

CEO, President and Chairman of the Board

Jeffery M. Blackburn

Sr. Vice President,

Business Development

Andrew R. Jassy

Sr. Vice President,

Amazon Web Services

Diego Piacentini

Sr. Vice President,

International Consumer Business

Shelly L. ReynoldsVice President,

Worldwide Controller and Principal Accounting Officer

Thomas J. SzkutakSr. Vice President,

and Chief Financial Officer

Jeffery A. Wilke

Sr. Vice President, Consumer Business

David A. Zapolsky

Sr. Vice President,

General Counsel and Secretary

SIC: 5961

Catalog and Mail-Order Industry

2009 2010 2011 2012 2013

net sales 6197832 8103899 10790368 12582348 203936508

gross profit 2621683 3282079 4326938 4416404 74844698

net profit after tax 161144 259325 474776 452965 7137778

0

50000000

100000000

150000000

200000000

250000000

Axi

s Ti

tle

Industry Norms in US$

EXTERNAL ENVIRONMENT

• Technological• Macroeconomic• Political/Legal• Demographic• Global• Social

INDUSTRY ANALYSIS

Force Intensity of Force

Threat of Potential Entrants Low

Current Rivalry among Existing Firms High

Bargaining Power of Suppliers Moderate

Bargaining Power of Buyers High

Substitute Products High

STRATEGIC GROUP

Supply Chain Management Value Added

Operations Value Added

Distribution Value Added

Sales and Marketing Value Added

Service Value Added

Product R&D, etc. Value Added

Human Resources Neutral -Negative

General Administration Neutral

VALUE CHAIN

FINANCIAL RATIOS

2009 2010 2011 2012 2013

Amazon 1.3304 1.3254 1.1741 1.1207 1.0716

Industry medians 2.20 2.40 2.10 2.00 1.80

0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

Current Ratio

FINANCIAL RATIOS

2009 2010 2011 2012 2013

amazon 1.0356 1.0167 0.8390 0.8033 0.7491

Industry Medians 1.00 1.00 0.90 0.80 0.90

0.0000

0.2000

0.4000

0.6000

0.8000

1.0000

1.2000

Quick Ratio

FINANCIAL RATIOS

2009 2010 2011 2012 2013

Amazon 11.2893 10.6821 9.6308 10.1298 10.0461

Industry Standards 9.4 8.6 8.2 9.1 9.2

0.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

Inventory Turnover

FINANCIAL RATIOS

2009 2010 2011 2012 2013

Amazon 0.1716 0.1678 0.0813 (0.0048) 0.0281

Industry Standards 12.20 10.70 12.10 17.80 8.60

(2.0000)

0.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

14.0000

16.0000

18.0000

20.0000 Return on Equity (Net worth)

STRATEGY

Low Cost

• Advantages• Disadvantages

SWOT

Strengths:

S1. Cost Leadership StrategyS2. Brand RecognitionS3. Customer Satisfaction

Opportunities:

O1. Online Payment SystemO2. Physical PresenceO3. Amazon Brand

Weaknesses:

W1. DiversificationW2. Online OnlyW3. Low Profit Margins

Threats:

T1. SecurityT2. LawsuitsT3. Economy

TOWS ANALYSIS

• Amazon Brand• Physical Sites• Payment System

CSR & ETHICS

• Donations

• Ethical Implications• Security Breach• Price Sharing• Conflict of Interest

CONCLUSION

• Mature• Flexible• Lessons Learned

• Value Chain• Financial Ratios• SWOT

QUESTIONS?