Amazon, The Company That Ate the World Elizabeth Akinsanya Spencer Haag

How many of you guys shop on Amazon? What are your impressions of the company? How many people in the room have Kindles? Opening Questions

Jeff Bezos, the CEO of Amazon, is excited to launch a new products: the Kindles. (starting at 79$) Four different models before introducing the Kindle Fire which is a long anticipated product that is said to compete with the iPad. o $199 less than half the price of cheapest Apple iPad o Android app store, over 10,000 games, programs, shopping guides, etc. o Amazon Web Services  Only 8 gigs of memory, but cloud servers are free o Think of the Kindle as a "service" not a product Downside to Kindle Fire: doesn't have embedded cameras or a microphone, and there is not 3G cellular connection, only Wi-Fi Upside: Small and handy Kindle

Kindle Fire

This was amazons slogan in the 1990's. Today amazon sells millions of goods and services, from toys and high- definition televisions to server space for other Internet companies and digital reading devices for book lovers Borders could not compete and went out of business Best Buy watched Amazon undercut and commoditize whole product categories, so they are now trying to shrink store square footage "Earth's largest bookstore"

Company keeps learning and growing. Jeff Bezos is known as a hyper- competitor. Websites thats have matched Amazon in selction, price, and customer serveice- Zappos, Diapers.com o Bezos quickly acquired (In 2011) Amazon is reporting 50% growth in quarterly revenue and could reach 50 Billion in sales for the year o This growth took Walmart almost twice the amount of time - 33 years Green Apple Books, a 44-year-old bookstore in San Francisco, Amazon has lowered the prices in the book business beyond his ability to match them Rivals

Major chains like Toys “R” Us, Sports Authority, and Radio Shack have teamed up to combat Amazon’s might, forming a free shipping program called ShopRunner that, like Amazon Prime, also offers free two-day shipping for $79 a year. o Now used by many other companies: NFL.com, MLB.com, Calvin Klein, PetSmart, and many others Rivals

Huge opportunity to sell new device AND entice users to buy more “stuff” Summer ‘11: 20% all e-commerce sales from tablets. Nearly 60% tablet owners use for shopping Used to see spikes in traffic during work day lunch hours. Now more evenly distributed thanks to tablets Tablets

Tablet-optimized shopping app pre-installed 30-day free trial of Amazon Prime $79-a-year two-day delivery program tends to convert members into Amazon addicts o Triple or even quadruple amount spent on site o Features a "Lending Library"- with Amazon Prime, Kindle owners can choose from more than 270,000 books to borrow for free with no due dates Own appstore for Android devices Shopping Tricks

Introduction of a new product: Kindle Paperwhite o World's most advanced e-reader- higher resolution, higher contrast touchscreen with built-in light and 8-week battery life o Patented built-in light that illuminates the screen  Kindle Paperwhite 3G- $179.  Kindle Paperwhite $119 Kindle Fire: Now has a front facing camera and has 3G capabilities. Today's Analysis