Marketing Analysis Amazon

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Amazon.com the

Hidden Empire

Three digital engines to reshape and dominate retail

Amazon.com: a digital shop around the corner…

… and a digital colossus.

Did you know: all these companies belong to Amazon…

Did you know: Amazon is also…

AmazonBasics Amazon-branded electronic products

AmazonFresh sells and delivers groceries in Seattle

AmazonStudios online social movie studio

Amazon WarehouseDeals offers discounts on refurbished products

Did you know: Amazon has had one of the fastest growths in the Internet’s history…
Revenues reached within first 5 years $2,8 bn

$1,5 bn

$0,4 bn

eBay

Google

Amazon

Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga
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1995

1997

2010

Garage 400 sq feet

2 fulfillment centers 300,000 sq feet

50 fulfillment centers 26,000,000 sq feet

Source: Amazon.com. Warehouse image: seanau.com

Limitless categories too
Books, Music and DVD/Video 100% Media vs. others in the U.S.1 80% 60% 40% Others

20%
0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

3 categories

16 categories

By introducing two new product categories every year for almost a decade, Amazon‟s market share represents one third of U.S. e-commerce sales.2
1Amazon.com 2RBC

Case study: from books to music (1995-1998)
Contrary to books, Amazon.com was no first-mover in music e-retailing. But the company went back to work and used the same cocktail:

Large selection
130k titles, 280 sub-genres

Convenience “most efficient song search of the web” (NYT)

Low prices up to 30 % discount on some albums

Largest online seller of music…

in 120 days!
Amazon acquired CDNow in 2002 and
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