Amazon India

Amazon India

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  Abhay Prakash Dubey 15/IMB/002 GautamBuddha University
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  MESSAGE BEHIND LOGO •The Amazon logo was created to represent the message that it sells everything from A to Z (the arrow connects the two letters) and also represents the smile that customers would experience by shopping on theAmazon.com Web
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  I N D E X 01 02 03 04 05 06 07 08 Company Profile Product Offered OperatingCountries Company Rating Market Share Market Strategy Mode Of Entry SWOT Analysis
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  AMAZON.COM INC • Amazon.com,also called Amazon, is an American electronic commerce and cloud computing company that was founded on July 5, 1994, by Jeff Bezos and is based in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization.Amazon.com started as an online bookstore, later diversifying to sell DVDs, Blu-rays, CDs, video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, software, video games, electronics etc. The company also produces consumer electronics—notably, Kindle e-readers, Fire tablets, Fire TV, and Echo—and is the world's largest provider of cloud infrastructure services.Amazon also sells certain low-end products like USB cables under its in-house brand AmazonBasics. • Amazon has separate retail websites for the United States, the United Kingdom, Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico. Amazon also offers international shipping to certain other countries for some of its products. In 2016, Dutch, Polish, and Turkish language versions of the German Amazon website were launched. • In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization, and was in the third quarter of 2016 the fourth most valuable public
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  OPERATING COUNTRIES 1. UnitedKingdom 2. Ireland 3. France 4. Canada 5. Germany 6. Italy 7. Spain 8. Netherlands 9. Australia 10. Brazil 11. Japan 12. China 13. India 14. Mexico
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  MODE OF ENTRY •Amazon India has signed up Aditya Birla Group-owned online fashion store abof (Aditya Birla Online Fashion) as a seller on its marketplace in a move that will help the Seattle-headquartered company expand its offerings in the high margin fashion business while exposing abof to a wider audience base during the coming festive season. Initially, abof will list more than 1,200 products in apparels, priced between INR 395 and INR 1,995 and will launch footwear and accessories in the coming months. Amazon claims to sell more than two million fashion products from 15,000 brands. Amazon launched fashion in a full-fledged way only towards the end of 2014 but it has quickly caught up with Flipkart by spending thousands of million on marketing, forging alliances with fashion labels, offering deep discounts through the year and delivering products fast.
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  PRODUCT OFFERED ININDIA • Amazon Device Accessories • Baby Products (excluding apparel) • Books • Cameras, Camcorders, Telescopes • Cell Phones • Consumer Electronics • Electronics Accessories • Home Appliances • Music CDs, Cassettes, Vinyl, and other sound recordings • Musical Instruments • Office Accessories • Office Products Supplies, Furniture, Printers, Calculators • Personal Computers • Software & Computer Games • Tools & Home Improvement • Toys & Games • Video Games & Video Game Consoles Types of Products
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  MARKET SHARE OFAMAZON INDIA 44% 32% 15% 7% 2% 9% Market Share 2015 Flipkart Snapdeal Amazon India Paytm Others 45% 26% 12% 7% 10% 17% Market Share 2016 Flipkart Snapdeal Amazon India Paytm Others
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  MARKET SHARE OFAMAZON UK 62% 22% 12% 2%1%1% 2016 Others Ebay Amazon Argos.co.uk Marksandspenser.com Next.co.in Tesco.com
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  DISTRIBUTION CHANNEL :- DIGITAL
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  • E-Books-Kindle reader •AmazonMP3 & Cloud Player • Instant Video • AppStore for android • Amazon Cloud drive • Amazon Game Studios & Softwares “On-line channel has significant cost benefit” Digital Channel Digital Channel
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  Distribution channel - Physical
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  • • Centralizeddistribution centers • Faster response time • Lower transportation cost • Use a hybrid approach in stocking and pricing • Pricing varies for delivery options • Supply Chain Strategy • Pure pull • Pure push • Push-pull Physical Channel Physical Channel
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  Have an holding inventoryof 15 days and an inventory turnover of 26. And also a credit period of 45 days from its suppliers. Amazon's goal is to collaborate with suppliers to increase efficiencies and improve inventory turnover
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  AMAZON INDIA COMPETITORS
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  S W OT Swot Analysis
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  STRENGTH •Brand well knownalong with a strong customer base in many parts of the world. • Diverse product offerings • Free home delivery above a minimum purchase • Working with minimum profit and gaining from economies of scale. • Strong business relationships with publishing houses, major electronic companies etc. • Experience of almost a decade in online shopping industry
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  WEAKNESS •Operates at verylow margin. •Criticism for its working conditions. • ‘KINDLE’ is not up to the mark of its competitors
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  OPPORTUNITIES •Acquiring more smallbusiness enterprises, enabling them to expand. • Opening physical stores so as to give the customers a feel of touch and experience • Indian retail industry is estimated to be $450 Billion . •Expand into more product segments •Tie ups with major players of untapped market
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  THREATS •Online security threats •Regionallow-cost retailers • Strong online presence of Indian competitors like Flipkart and Myntra • Flexible rules against FDI enabling other major players like Wal- Mart etc. to enter
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  THANK YOU