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Amazon entered the Indian e-commerce market in 2013 with the launch of Amazon.in. It targeted major cities like Bangalore, Hyderabad, and Chennai initially. While it faced intense competition from established local giants like Flipkart, Amazon became the second largest e-retailer in India within a year of launch by focusing on a wide selection of products and fast delivery options. However, it still trails Flipkart in overall market share and revenue as it works to gain ground against strong local competitors in the rapidly growing Indian e-commerce sector.

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Amazon andTheWorld A Group 4 Presentation
Background Amazon.com, Inc. is an American electronic commerce company with headquarters in Seattle, Washington. Delivering products since 1994. Started with e-retailing books. Grew exponentially. Amazon also sells certain low end products like USB cables under its in-house brand Amazon Basics. The company also produces consumer electronicsnotably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone and is a major provider of cloud computing services.
Our vision is to be Earth's most customer centric company; to build a place where people can come to 鍖nd and discover anything they might want to buy online. Amazons Mission/Vision
01 ! Mission orVision? Mission Vs. Vision Strategic Management Insight score 1.7? The focus on Customers. Diversi鍖cation into all commodities that can be sold online. Our vision is to be Earth's most customer centric company; to build a place where people can come to 鍖nd and discover anything they might want to buy online.
Amazons Venture Into India Strategy 1
01 What?When?Where? Amazon.com entered the Indian e- commerce space with its online marketplace Amazon.in. Junglee.com tested waters. June 5, 2013 Initial cities targeted- Bangalore, Hyderabad & Chennai.
Why? Indian e-commerce market expected to grow to $200 billion by 2020. India a vital market for global dominance in e-commerce. Indian market far from saturation. Internet penetration is a mere 20%.
How? How much? Cap of 49% for FDI in B2C online markets. Use of marketplace model to work around the FDI limit. Catalogue size: 7 million books and 12000 movies, through 100 sellers. Investment amount not disclosed.
Amazon Indias performance and strategic moves Amazon now has a base of 5000 sellers. Selection of 15 million products across 25 categories. First among its competition to introduce same-day and next-day deliveries.
01 Competitor Comparison Intense competition has led to aggressive pricing and discounts being paid by venture capitalists. Money is being burned to acquire new customers. Flipkart leads in Net Revenue. However Flipkart leads in losses as well, by a greater margin. !
Was the strategy successful? Amazon.in became the second largest e-retailer a year from launch. Hard work ahead to catch up with local giants. Timing of the entry had certain advantages - 1. Groundwork already done by homegrown competitors. 2. An exhausted competition.
Did a competitor execute a similar strategy? eBay entered India in 2004 by buying out baazee.com. In 2005 renamed it eBay.in. One of the earliest online marketplaces in the country. It has slipped behind both Flipkart & Amazon.
Conclusion
Concentric Diversi鍖cation The FIRE Phone
01 Unique Features Exclusively on AT&T $199.99 on contract High quality speakers Cloud Storage Mayday-24 hour live support Dynamic 3D perspective Fire鍖y
WHY DIDTHEY DO IT? To revolutionise Brick & Mortar and e-Commerce shopping. To understand consumer behaviour in depth. CAGR in the cellphone market - 12.3%.
LETS DO SOME NUMBER CRUNCHING
Amazon sold a total of 35,000 鍖re phones till August 2014. Value of unsold phones - $83 million. Losses on Fire Phone- $170 million.
Smartphone market share in 2014
Strat
01 WHY DIDTHEY FAIL? It doesnt do anything you cant already do with a stock Android device. Restricted application usage. It is quite expensive. It has 3D but without a 3D screen It takes away the consumers power to choose. Only sold on AT&T.
01 WHAT COULD HAVE BEEN DONE BETTER? Offer it on multiple carriers. Get better services. Be more creative with the pricing.
01 HOW DID MICROSOFT DO IT? Used forward integration to acquire Nokia. Nokia already used Windows OS for 80% of its devices. Nokia brought 鍖nancial capabilities to Microsoft.
SWOT Strength Brand well known along with a strong customer base. Diverse product offerings Strong business relationships with publishing houses, major electronic companies etc. Experience of almost two decade. Weakness Operates at very low margin KINDLE is not up to the mark to its competitors Brand dissonance with Junglee and Amazon Opportunity Acquiring more small business enterprises. Opening physical stores so as to give the customers a feel of touch and experience. Indian retail industry is estimated to be $450 Billion. Threats Online security threats Regional low-cost retailers Strong online presence of Indian competitors like Flipkart and Myntra Flexible rules against FDI enabling other major players like Wal-Mart etc. to enter
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  • 1. Amazon andTheWorld A Group 4 Presentation
  • 2. Background Amazon.com, Inc. is an American electronic commerce company with headquarters in Seattle, Washington. Delivering products since 1994. Started with e-retailing books. Grew exponentially. Amazon also sells certain low end products like USB cables under its in-house brand Amazon Basics. The company also produces consumer electronicsnotably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone and is a major provider of cloud computing services.
  • 3. Our vision is to be Earth's most customer centric company; to build a place where people can come to 鍖nd and discover anything they might want to buy online. Amazons Mission/Vision
  • 4. 01 ! Mission orVision? Mission Vs. Vision Strategic Management Insight score 1.7? The focus on Customers. Diversi鍖cation into all commodities that can be sold online. Our vision is to be Earth's most customer centric company; to build a place where people can come to 鍖nd and discover anything they might want to buy online.
  • 5. Amazons Venture Into India Strategy 1
  • 6. 01 What?When?Where? Amazon.com entered the Indian e- commerce space with its online marketplace Amazon.in. Junglee.com tested waters. June 5, 2013 Initial cities targeted- Bangalore, Hyderabad & Chennai.
  • 7. Why? Indian e-commerce market expected to grow to $200 billion by 2020. India a vital market for global dominance in e-commerce. Indian market far from saturation. Internet penetration is a mere 20%.
  • 8. How? How much? Cap of 49% for FDI in B2C online markets. Use of marketplace model to work around the FDI limit. Catalogue size: 7 million books and 12000 movies, through 100 sellers. Investment amount not disclosed.
  • 9. Amazon Indias performance and strategic moves Amazon now has a base of 5000 sellers. Selection of 15 million products across 25 categories. First among its competition to introduce same-day and next-day deliveries.
  • 10. 01 Competitor Comparison Intense competition has led to aggressive pricing and discounts being paid by venture capitalists. Money is being burned to acquire new customers. Flipkart leads in Net Revenue. However Flipkart leads in losses as well, by a greater margin. !
  • 11. Was the strategy successful? Amazon.in became the second largest e-retailer a year from launch. Hard work ahead to catch up with local giants. Timing of the entry had certain advantages - 1. Groundwork already done by homegrown competitors. 2. An exhausted competition.
  • 12. Did a competitor execute a similar strategy? eBay entered India in 2004 by buying out baazee.com. In 2005 renamed it eBay.in. One of the earliest online marketplaces in the country. It has slipped behind both Flipkart & Amazon.
  • 15. 01 Unique Features Exclusively on AT&T $199.99 on contract High quality speakers Cloud Storage Mayday-24 hour live support Dynamic 3D perspective Fire鍖y
  • 16. WHY DIDTHEY DO IT? To revolutionise Brick & Mortar and e-Commerce shopping. To understand consumer behaviour in depth. CAGR in the cellphone market - 12.3%.
  • 17. LETS DO SOME NUMBER CRUNCHING
  • 18. Amazon sold a total of 35,000 鍖re phones till August 2014. Value of unsold phones - $83 million. Losses on Fire Phone- $170 million.
  • 21. 01 WHY DIDTHEY FAIL? It doesnt do anything you cant already do with a stock Android device. Restricted application usage. It is quite expensive. It has 3D but without a 3D screen It takes away the consumers power to choose. Only sold on AT&T.
  • 22. 01 WHAT COULD HAVE BEEN DONE BETTER? Offer it on multiple carriers. Get better services. Be more creative with the pricing.
  • 23. 01 HOW DID MICROSOFT DO IT? Used forward integration to acquire Nokia. Nokia already used Windows OS for 80% of its devices. Nokia brought 鍖nancial capabilities to Microsoft.
  • 24. SWOT Strength Brand well known along with a strong customer base. Diverse product offerings Strong business relationships with publishing houses, major electronic companies etc. Experience of almost two decade. Weakness Operates at very low margin KINDLE is not up to the mark to its competitors Brand dissonance with Junglee and Amazon Opportunity Acquiring more small business enterprises. Opening physical stores so as to give the customers a feel of touch and experience. Indian retail industry is estimated to be $450 Billion. Threats Online security threats Regional low-cost retailers Strong online presence of Indian competitors like Flipkart and Myntra Flexible rules against FDI enabling other major players like Wal-Mart etc. to enter