amazon

Information System Case Study

About Amazon.com
• American multinational technology company
• Focuses on e-commerce, cloud computing, online advertising, digital streaming, and artificial
intelligence
• Headquartered in Seattle, Washington
Statistics

20+ 12m+
COUNTRIE PRODUCT
S S

148m+ 89%
PRIME CUSTOMER
USERS TRUST
The Founder
Jeffrey Preston Bezos is an American
entrepreneur, media proprietor, investor, and
commercial astronaut. He is the founder,
executive chairman, and former president
and CEO of Amazon.

JEFF
Founder
BEZOS
 199 199 200 200 201 201 201 202
4 8 2 6 0 4 8 2

1st physical Minimum wage raised to

Amazon founded
1994 store
2015 $15/h
2018
Kindle e-books outsell hardcover 25-year
IPOs at $18.00/share $1 trillion market cap reached
1997 books
2010 2018 anniversary
2019
Company Expands beyond
Amazon Launches in India
Milestones books
1998 2013

Jeff Bezos steps down

as CEO
2021

Amazon Elastic Compute Cloud Kindle Fire

2006 2014
Amazon Instant
Amazon Prime Amazon Fresh Amazon Underground
Video
Product 2005 2007 2011 2015

Launches Amazon Mechanical Turk

2005
Amazon Music
2007
Amazon Appstore
2011
Amazon Prime Air
2016
Amazon S3 Amazon Kindle Amazon Care
2006 2007 2019

IMDB Joyo Zappos GoodReads Whole Foods

1998 2004 2009 2013 2017
Acquisitions Audible Kiva Systems Twitch PillPack MGM
2008 2012 2014 2018 2022
 Large
Low Price
Selection

Convenience

Mission
We strive to offer our customers the lowest possible prices, the best available selection, and the utmost
convenience

Vision
To be Earth’s most customer-centric company, where customers can find and discover anything they might
want to buy online, and endeavors to offer its customers the lowest possible prices.
Guiding Principles Values
• Customer obsession rather than competitor • Customer Obsession
focus • Ownership
• Passion for innovation • Invent and Simplify
• Commitment to operational excellence • Learn and Be Curious
• Long-term thinking • Hire the Best
• The Highest Standards
• Think Big
• Bias for Action
• Earn Trust
• Deliver Results
Value Proposition
Multiple value propositions, as it serves target customers in different markets

• Kindle: Easy to read on the go

• Prime: Anything you want, quickly delivered
• Marketplace: Sell better, sell more
• & many more

Amazon measures its success via a customer experience obsession, lowering prices, stable tech
infrastructure and free cash flow generation.
Amazon’s Multi-sided Value Proposition
Amazon Leadership

Jeffrey P. Bezos Andy Jassy Brian T. Olsavsky Douglas J. Herrington

Executive Chair President and CEO Senior VP and CFO CEO, Worldwide Amazon Store

Shelley L. Reynolds Adam N. Selipsky David A. Zapolsky

VP, Worldwide Controller CEO, AWS Senior VP, General Councel
Ownership
Name Hold Share

Jeffrey P. Bezos 9.73% 992,633,688

Vanguard Group Inc 6.88% 701,550,877

877Blackrock Inc 5.71% 582,127,081

State Street Corp 3.23% 329,849,003

Fmr LLC 2.96% 302,056,199

Price T Rowe Associates Inc 2.77% 282,601,501

Geode Capital Management LLC 1.55% 157,659,175

Morgan Stanley 1.18% 120,416,818

Capital Research Global Investors 1.03% 105,050,354

Jpmorgan Chase Co 0.99% 100,509,386

Amazon Product Line
Amazon Store
Brand home within Amazon. Custom
shopping destination for individual
brands to share their story and
offerings. Increases product selection
Devices and Services
Alexa and Echo, Fire TV, Fire Tablets
and many more that makes customer’s
daily lives easier and enjoyable

Amazon Web Services Delivery and Logistics Entertainment

On-demand cloud Helps Amazon to be Amazon Originals, Prime
computing platform. the most customer Video, Audible, Twitch,
World’s most centric company Amazon Music, and
comprehensive and more
broadly adapted
Revenue
Amazon Revenue Breakdown 2021 Revenue Revenue(in %)

Online Stores $222B 47.27

Physical Stores $17B 3.62

Third-party seller services $103.3B 21.99

Subscription services $31.76B 6.76

AWS $62.2B 13.24

Advertising $31.16B 6.63

Other $2.17B 0.46

Revenue
Competition Analysis
Amazon works in various spaces like e-commerce, cloud computing, electronics, AI, entertainment
and many more.
So, there are a lot of competitors in each space.
● Amazon has dominated in e-commerce and cloud computing. Amazon.com is the largest e-
commerce platform and AWS is the number one cloud computing provider.
● In electronics, Google, Apple, Microsoft are competing with Apple at the top.
● Amazon’s Prime Video is competing with Netflix, Hulu, HBO and many more with Netflix as the
top streaming service.
 SWOT Analysis
Strengths Weaknesses
● Strong brand name ● Easily imitable business model
● Brand valuation ● Losing margin in few areas
● Differentiation and Innovation ● Product Flops and Failures
● Customer oriented ● Tax Avoidance Controversy
● Cost leadership ● Declining Customer Safety

S W
Opportunities
● Investing in smart materials
O T Threats
● Few Controversies
● More acquisitions ● Government regulations
● Self Driving Technology ● Increasing Cybercrime
● Expanding physical Stores ● Aggressive Competitions
● Expanding operations in developing markets ● Imitations
Balanced Scorecard
Balanced scorecard is a strategic management performance
metric used to identify and improve various internal business
functions and their resulting external outcomes.

Measures 4 aspect:
● Learning and growth
● Internal Business Process
● Customer
● Financial
Financial Perspective
Objectives
Increase cross-selling products
Bigger margin on premium services
Increase conversion rate
Expansion to new market
Measures
Number of cross-sold items after each purchase
Increase the profit margin and maintain
premium services growth
The conversion rate on Amazon Market Place
Percentage revenue from new market
Customer Perspective
Objectives Measures
Enhance customer shopping experience and Average NPS Score
Increase Net Promoter Score(NPS)
Build Loyalty Number of returning users after their first
purchase
Fast delivery Add more distribution centres
Improve Service Quality Percentage of returns
Internal Process Perspective
Objectives
Same Day Delivery
Strategic partnership with vendors in
underserved markets
Decentralized warehousing
Optimize search algorithm
Measures
Orders with same day delivery available option
Percentage of revenue increase in currently
underserved market
Number of users served per warehouse in the
new market
Number of products purchased from the first
page search results
Learning & Growth Perspective
Objectives
Increase skills and capabilities of employee
Increase motivation
Research and Development
Measures
Employee satisfaction rating, Employee
turnover percentages, Productivity
Payscale, Services per employee
Percentage of sales from new product
 Strategy Map

Learning and Internal Business Customer Financial

Growth Process • Increase customer • Increase conversion
• Increase employee • Fast delivery satisfaction rate
skill • Decentalized • Build Loyalty • Increase cross
• Increase motivation warehousing selling product Grow
• Company culture • Optimized search • Increase margin Revenue
• Research and algorithm
Development
thanks!
Slide Chef