CASE STUDY ON AMAZON

Origin of Amazon in India:

Amazon is an American international e-commerce company that was started by the computer scientist and philanthropist Jeffrey P. Bezos, in the year 1994 as a bookstore and soon expanded and became the everything store. It went online in 1995 and issued an IPO in May 1997 and not to mention it was launched in India in June 2013. Since its launch in India Amazon has built the biggest online marketplace in the country. Fact behind formation of Amazon in India was its huge number of headcounts who are internet users i.e.  500 million, around 35% of around 1.25 million the total population. Since the launch Amazon has invested 5billion US dollars in India. The company covers every serviceable pin codes in India for delivery of their products. Moreover It has the largest storage capacity in India with 41 fulfilment centers across 13 states, also as a matter of fact there are more than 20,000 Indian sellers on Amazon marketing their products worldwide.

Amazon’s business model:

 Amazon opted marketplace model to begin with. Marketplace model provides small business a huge scaling opportunity without having to build the technical or operational infrastructure of scale. Now Amazon is the largest marketplace on earth selling over 40categories of goods, from books to electronics to groceries to jewellery to auto parts. The company is also an ecommerce and internet technology platform, a fulfillment and logistics platform, a search technology, an internet advertising platform and even an internet startup breeding place. In terms of operating income, the growth is mainly driven by the high margins deriving from the service sales. By looking in depth at the revenue sources, subscription and AWs services have accelerated the income growth.

Key features of the company:

Key features of their websites include editorial and customer reviews, manufacturer product information; webpages tailored to individual preferences, such as recommendations, notification secure payment systems; image uploads; searching on their websites as well as the internet and search the entire contents of many of the books they offer with their” look inside the book” feature.

Other business strategies:

They serve consumers through their retail websites and focus on selection, price and convenience. They design their websites to enable hundreds of millions of unique products to be sold by them and by third parties across dozens of product categories. Customers access their websites directly and through their mobile websites and apps. They also manufacture and sell electronic devices, including kindle e-readers, Fire tables, Fire TVs, and Echo, and they develop and produce media content. They strive to offer their customers the lowest prices possible through low everyday product.

While the company core business model is based on its online store. Amazon launched its physical stores, which generated already over 5billion dollars in revenues in 2017. The latest example of innovation in their business model is the launch of Amazon Go, a new kind of store with no checkout required. Boasting a “just walkout shopping experience”, the Amazon Go app users enter the store, take the products they want, and go with no lines and no checkout. Amazon prime launched in 2005, offering free shipping for a flat annual fee also plays a crucial role in amazon overall business model. Besides, In august 2007 appeared AmazonFresh, a grocery service offering perishable and nonperishable foods.AmazonMP3, launched in September 2007, sold MP3 downloads without digital rights management. Amazon began film production in 2008.Kindle, Amazon’s e-book reader, proved a runaway success, inspiring many lookalikes and allowing more e-books than hardbacks to be sold in July 2010.Amazon also offers a third party selling platform, amazon marketplace, that allows marchants to offer goods and services through an online shopping mall. The company also has its cloud infrastructure called AWS, which is a world leader and a business with high margins. Amazon also has an advertising business worth a few billion dollars. Thus, amazon business model looks like many companies in one.

Target group:

Amazon targets the middle class and upper class people who have hands on experience in technology but don’t have much time to do shopping from the physical outlets. Taking this into consideration amazon has successfully positioned itself as a glocal (go global act local) e-commerce giant where one can buy anything and get it delivered at any remote locations.

Amazon products are generally offered at a discount, a steep discount in the case of books. Amazon often has the largest selection of goods in a particular category, especially books. Amazon focuses on the customer and try make purchasing an enjoyable experience, offering an easy to use customer interface. Fast and reliable delivery from vast, fully automated warehouses, first located in strategic spots in the US but increasingly worldwide.

The company acquired many IT and e-commerce start-ups like pets.com, audible.com, jungle.com, IMDB.com, Zappos.com, Woot.com for providing high value to their customers using existing technology of the acquired partners at low cost.

Conclusion:

Amazon performs exceptionally efficiently in terms of revenue per visitor, which is one of the key plans for any commercial website, whether it’s a media site , search engine, social network or a transactional retailer or offers travel or financial services. This is a brand well respected for prices and customer convenience. It has Accumulated technological expertise in retailing and customer management technology. precisely to conclude with Achieving customer loyalty and repeat purchases has been clue to amazon’s triumph. Many dot-coms failed because they succeeded in achieving awareness, but not loyalty. Amazon achieved both.