PGP 2021-23

Analysing Amazon Section - G

Marketing Management Group 1

through the 5C 2111451    Adithya MR

2111452    Joshika Agarwal
Framework 2111453    Harsh Agrawal
2111454    Saloni Agrawal
2111455    Adithya Anand
2111456    Ankit Kishore
5C Framework
• Refers to the core value offering of the company, its
Company 1 competitive advantage and range of products

• Identifying target market, customer need and wants and

Customer 2 strategies to engage/acquire customers

• Collaborators include members in the supply chain as well

Collaborators 3 as strategic 

• Understanding the other players in the market and  their

Competitors 4 relative strength/control over the market

• Context is the external environment in which a company

Context 5 operates
 Company
1997 2020
                                                                                  Product                                                                                               
• Online book seller • Consumer E-commerce, AWS, Smart Home Devices
                                                                Competitive Advantage                                                                          
• Wider selection than a physical store. • Save ~75h per year per customer through e-commerce
• Available 24*7 • Cost Reduction and enhanced development speed with AWS
                                                                                       Goals                                                                                                 
• Personalization • To create value for everyone they interact with
• Online commerce opportunities in other areas • Earth’s Most Customer-Centric Company, Earth’s Best
Employer, Earth’s Safest Place to Work
                         Value Creation                               
• Economic Value : $147.8 M revenue • Economic Value creation of $301B for shareholders, employees,
• Functional Value : low cost, wide selection third party sellers and customers
• Societal Value: Progress towards goal of 100% renewable
energy by 2025, Electric Delivery vans, Climate Pledge Fund 
• Functional Value : low prices, vast selection, fast delivery
 Customer
1997 2020
Market Segment and Reach
• Exponential Growth in customer accounts and sales • Established market leader in Cloud, E-Commerce,
• Market leader in online bookselling Smart Homes, OTT industry

Future focus to enter established and large markets, Future focus resist environmental equilibrium and
introduce music maintain distinctiveness
Frequency of purchase & Brand Loyalty
• Orders from repeat customers grew to 58% in Q4 • 100M connected smart home devices, 200M prime
(+12% YoY) members and AWS $50 B annual run-rate
Customer needs
• Customer obsession central to company strategy • $164 B as approximated overall customer value
• Focus on economic, experiential, social, and provided
functional values • Focus on economic value: saving time and pricing
Future focus expand value in all categories Future focus on invention to create more value
 Collaborator
1997 2020
                                                                  Shareholders
• Amazon.com believed shareholders • Created a total wealth of $1.6T for shareholders, out of which
measure their success in the long run. $21B created in 2020 only
• Gone public on Day 1 with split-adjusted • By the end of year 2020, stock price reached around 2200% of
stock price of $1.50 per share what in 1997, Day
                                                                                             Third
Third Party
Party Sellers
Sellers
•• ThirdThird party party sellers sellers play play aa vital vital role role in
in •• More
More than
than 1.9M
1.9M SMB
SMB sell
sell in
in their
their store,
store, close
close to
to 60%
60% of
of retail
retail sales
sales
spreading
spreading their market their market • The estimated profit of TPS was around
• The estimated profit of TPS was around $25 B
$25 B
                                                                      Partners
                                                                      Partners
• Established long-term relationship with • For electric vehicle, they invested $1B in Rivian.
• Established
some partners. long-term relationship with •• For electricwith
Partnered vehicle, they invested
Mahindra $1BMercedes-Benz
(India) and in Rivian. (Europe)
some partners.
• Including America Online, Yahoo!, Excite, • For zero carbon economy, they invested $2 B in CarbonCure • Partnered with Mahindra (India) and Mercedes-Benz (Europe)
• Including
Netscape,America Geocities, Online,
AltaVista, Yahoo!, Excite, • For
@Home zero carbon
Technologies, economy,
Redwood they invested
Materials, $2 B ZeroAvia,
Pachama, in CarbonCure
Turntide
Netscape,
and Prodigy Geocities, AltaVista, @Home Technologies, Redwood
Technologies and Infinium Materials, Pachama, ZeroAvia, Turntide
and Prodigy Technologies and Infinium
 Competitor
1997 2020
Present competitor landscape
• E-commerce sector just budding and new to other  Global leader with a significant market share
competitors  40% of all USA online retail in 2020 [3]
 14% of all retail sales in 2020 [3]

• Amazon had initial advantage in online platform  Diversified business created diversified areas of
competition
Areas of
Areas of
competition competition

Upcoming online Other online e- Cloud Consumer

Large scale retailers Entertainment
platforms commerce computing Electronics
Approach to the future
• Lot of focus on competition in initial letter to • More focus on sustained operational growth and
shareholders innovation in 2020 letter
• Wary of large-scale sellers entering online sector
• Solidify market leadership
• Expanding the platform across sectors
 Context
• Antitrust lawsuit against Amazon
in the US & EU
• Allegations of misuse of data to • Onset on unionisation in Big
gain unfair trade advantage Tech
• Tightening of regulations in
LEGAL
emerging markets
• Push for sustainable,
environment friendly business ENVIRON-
POLITICAL
practices MENTAL
• Expectation of environmental
responsibility from Big Tech PESTEL
PESTEL
ANAYSIS
ANAYSIS • Economic revival in developing
TECHNO-
countries after COVID-19
ECONOMIC
LOGICAL
• Growing demand for cloud
computing platforms
• Rapid strides in UAV technology SOCIAL
for faster delivery • Increased focus on employee treatment
and well-being.
• Rapid growth in new Internet users &
technological literacy
Insights
• Establish market presence
• Expand product offering 1
1997 • Customer-centric value creation
CHALLENGES AHEAD

2
• Market Leader in e-commerce and cloud services • Increasing share of TPS
• Established B2B and B2C presence on Amazon.com at the

2020 TPS
3
• Holistic value creation- shareholders, employees, customers, expense of home brand

• Navigating a dynamic
political landscape
4
• Environmental sustainability
• Earth’s Best Employer, Earth’s safest place to work

Future • Continued focus on maintaining originality and distinctiveness

5
Thank You