MGT590 - Lippert AMAZON Stephen Kimball Charles Golden Christen Bergstresser
BACKGROUND 1995 2000 2006 2007 Founded E-Commerce Platform Web Services Kindle
MISSION STATEMENT Amazon.com strives to be Earth s most customer-centric company where people can find and discover virtually anything they want to buy online. By giving customers more of what they want low prices, vast selection, and convenience Amazon.com continues to grow and evolve as a world-class e-commerce platform.
STRATEGIC EVOLUTION Intended Strategies Vs. Emergent Strategies
STAKEHOLDERS
BOARD OF DIRECTORS Tom A. Alberg, Madrona Venture group John Seely Brown, Visiting Scholar and Advisor to the Provost at USC Wiliam B. (Bing) Gordon, Kleiner Perkins Caulfield & Byers Jamie S. Gorelick, Wilmer Cutler Pickering Hale and Dorr, LLP Jeffery P. Bezos, CEO, President and Chairman of the Board Judith A. McGrath, Astronauts Wanted, *No Experience Necessary Alain Moiné, Ingram Micro, Inc Jonathon J. Roberson, Former Chairman & CEO, Palm, Inc. Thomas O. Ryder, Former Chairman & CEO, Readers Digest Association, Inc. Patricia Q. Stonesifer, Martha s Table
ORG CHART Jeffery P. Bezos CEO, President and Chairman of the Board Jeffery M. Blackburn Sr. Vice President, Business Development Andrew R. Jassy Sr. Vice President, Amazon Web Services Diego Piacentini Sr. Vice President, International Consumer Business Shelly L. Reynolds Vice President, Worldwide Controller and Principal Accounting Officer Thomas J. Szkutak Sr. Vice President, and Chief Financial Officer Jeffery A. Wilke Sr. Vice President, Consumer Business David A. Zapolsky Sr. Vice President, General Counsel and Secretary
Axis Title SIC: 5961 Catalog and Mail-Order Industry 250000000 Industry Norms in US$ 200000000 150000000 100000000 50000000 0 2009 2010 2011 2012 2013 net sales 6197832 8103899 10790368 12582348 203936508 gross profit 2621683 3282079 4326938 4416404 74844698 net profit after tax 161144 259325 474776 452965 7137778
EXTERNAL ENVIRONMENT Technological Macroeconomic Political/Legal Demographic Global Social
INDUSTRY ANALYSIS Force Threat of Potential Entrants Current Rivalry among Existing Firms Bargaining Power of Suppliers Bargaining Power of Buyers Substitute Products Intensity of Force Low High Moderate High High
STRATEGIC GROUP
VALUE CHAIN Supply Chain Management Operations Distribution Sales and Marketing Service Product R&D, etc. Human Resources General Administration Value Added Value Added Value Added Value Added Value Added Value Added Neutral -Negative Neutral
FINANCIAL RATIOS Current Ratio 3.0000 2.5000 2.0000 1.5000 1.0000 0.5000 0.0000 2009 2010 2011 2012 2013 Amazon 1.3304 1.3254 1.1741 1.1207 1.0716 Industry medians 2.20 2.40 2.10 2.00 1.80
FINANCIAL RATIOS 1.2000 Quick Ratio 1.0000 0.8000 0.6000 0.4000 0.2000 0.0000 2009 2010 2011 2012 2013 amazon 1.0356 1.0167 0.8390 0.8033 0.7491 Industry Medians 1.00 1.00 0.90 0.80 0.90
FINANCIAL RATIOS 12.0000 Inventory Turnover 10.0000 8.0000 6.0000 4.0000 2.0000 0.0000 2009 2010 2011 2012 2013 Amazon 11.2893 10.6821 9.6308 10.1298 10.0461 Industry Standards 9.4 8.6 8.2 9.1 9.2
FINANCIAL RATIOS 20.0000 Return on Equity (Net worth) 18.0000 16.0000 14.0000 12.0000 10.0000 8.0000 6.0000 4.0000 2.0000 0.0000 (2.0000) 2009 2010 2011 2012 2013 Amazon 0.1716 0.1678 0.0813 (0.0048) 0.0281 Industry Standards 12.20 10.70 12.10 17.80 8.60
STRATEGY Low Cost Advantages Disadvantages
SWOT Strengths: S1. Cost Leadership Strategy S2. Brand Recognition S3. Customer Satisfaction Weaknesses: W1. Diversification W2. Online Only W3. Low Profit Margins Opportunities: O1. Online Payment System O2. Physical Presence O3. Amazon Brand Threats: T1. Security T2. Lawsuits T3. Economy
TOWS ANALYSIS Amazon Brand Physical Sites Payment System
CSR & ETHICS Donations Ethical Implications Security Breach Price Sharing Conflict of Interest
CONCLUSION Mature Flexible Lessons Learned Value Chain Financial Ratios SWOT
QUESTIONS?