AMAZON, THE COMPANY THAT

ATE THE WORLD

Kimmy 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=LJRsEW3Qhl8
 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-201109
17,0,6503103.story

 Employees get few benefits and perks

 Large sales-tax debate between Amazon and many state

legislators
THANK YOU

QUESTIONS?