AMAZON, THE COMPANY THAT ATE THE WORLDKimmy 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=LJRsEW3Q
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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-20110917,0,6503103.story
Employees get few benefits and perks
Large sales-tax debate between Amazon and many state legislators
THANK YOU
QUESTIONS?
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