12 May 2011

Amazon.com: the Hidden Empire

When Amazon.com CEO Jeff Bezos explains what his company is about, he always stresses the fact that it is safer to rely on a strategy of things that won’t change: “I can’t imagine that ten years from now [customers] are going to say: ‘I really love Amazon, but I wish their prices were a little higher’”

Undoubtedly, this is the reason why Amazon.com does not evoke the same innovative and exuberant impression Apple, Google or Facebook give us – despite being one of the oldest companies on the web. While most of the Internet’s well-known brands focus on ideas that are deeply disruptive, Amazon relentlessly strived on selling stuff, which is one of the oldest forms of communication.

Reading this presentation will let you know everything about Amazon.com’s strategy; and discover how its three digital engines (enjoying no limits, owning customer accounts, building an ecosystem) helped it become Earth’s largest e-retailer.

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Key ideas

Why should you read this presentation?

  • This paper presents everything you need to know about Amazon.com’s strategy with graphic-rich slides
  • Discover Amazon.com’s digital engines (when applied to existing businesses, digital engines provide a significant advantage to outperform one’s competitors).
  • Understand how this strategy could significantly disrupt or improve your business.

Did you know that?

  • Amazon.com’s revenues are larger than Google’s.
  • IMDb, woot!, Zappos and Stanza belong to Amazon.com.
  • The e-retailer sells Amazon-branded products (Amazon Basics).
  • Quora, Zynga and Yelp are using Amazon Web Services.
  • Amazon.com has 33,700 employees (15 times more than Facebook).

Amazon.com’s three digital engines

Amazon.com leveraged three digital engines to become Earth’s largest e-retailer.

  1. No limits: Amazon.com CEO Jeff Bezos perfectly understood the limitless nature of the Internet and fostered it with limitless inventory, excellence in customer care and low prices.
  2. Customer accounts: Amazon.com is trying to commoditize the sellers and gain customers via multiple entry points (mobile application, affiliation, devices…). Its true asset lies in its ability to own and control the customer account.
  3. Ecosystem is the place where the likes of Facebook, Google, Apple and Amazon.com meet. All these players are actually trying to build up an ecosystem thanks to a combination of recurring usage, seamless integration and customer lock-in. This is most importantly the case with the cloud.

Amazon in 2020: four dream products

(download)

Readers’ testimonials

We hope you’ll enjoy reading this presentation as much as we enjoyed writing it!

A real deep dive into Amazon’s business model and future prospects” – TechCrunch

"Fascinating slideshare presentation" – Tim O'Reilly, Founder & CEO, O'Reilly Media

Wow” – Gustavo Santana

Very impressive set of statistics” – Doug Pepper

Terrific slides on Amazon’s breath in the market place, and how to fear customers rather than competitors” – @angusjdmurray

Want to understand THE eCommerce strategy?” – @Mimeo

One of the best presentations I’ve ever seen” – @Commodity_Bull

Pretty long read. But worth the time.” – @Nambitious

I […] hope that my startup will be just as focused on customer satisfaction and innovation.” – Michael Raneri, CEO Smeevee

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Created in 2003, faberNovel is an innovation agency specialized in designing and implementing innovative projects. Based in Paris, San Francisco, New York, Moscow and Ho Chi Minh City, faberNovel leverages emerging technologies, methodologies or practices to create new products and services.

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