AMAZON, THE COMPANY THAT ATE THE WORLDKimmy Ni

Drew Meriwether

WHAT IS AMAZON? The world’s largest online retailer Founded in 1994 by Jeff Bezos Headquartered in Seattle, Washington Had revenues of 48 billion in 2011 Did not show a profit until 2001 http://www.youtube.com/watch?v=LJRsEW3Q

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THE KINDLE FIRE 7 inch screen and $199 (less than half as

much as the cheapest IPad)

Easy-to-use interface that ties in with other Amazon services (e.g. cloud computer engine)

Other products that tried to mimic the IPad (HP

TouchPad, Motorolla Xoom, and RIM playbook) have failed

HOW AMAZON COMPETES WITH APPLE

IPad has an Amazon app, but Apple takes a 30% cut of sales and doesn’t let Amazon refer users to its own site

Amazon has opened online media stores and offers free Netflix streaming service with Amazon Prime

Unlike Apple, Amazon “has no problem operating at low profit margins”

$199 $499

http://www.youtube.com/watch?v=tCiC9h2tit4

http://www.youtube.com/watch?v=b2LLSrlKr3c

WHAT HAS MADE AMAZON SUCCESSFUL

Went from “Earth’s Largest Bookstore” to selling millions of different products and services

Borders and Circuit City have gone out of business

Best Buy and Wal-Mart are losing sales

Websites that match Amazon’s price and speed (e.g. Zappos, Diapers.com) have been bought out by Amazon

CHALLENGES FOR AMAZON Worker conditions aren’t so good –

http://www.mcall.com/news/local/amazon/mc-allentown-amazon-complaints-20110917,0,6503103.story

Employees get few benefits and perks

Large sales-tax debate between Amazon and many state legislators

THANK YOU

QUESTIONS?