1. Goran Nagradic

2. History of the company  Amazon was born in 1995  Company was founded by Jeff Bezos  First name for the company was Cadabra (but it didn’t last long)  Amazon – starts with A, something big and easy to spell  In July 1995 company went online  In May 1997 company went public

3. Management team  Jeffrey P. Bezos - Chief Executive Officer, President, Chairman of the Board  Thomas J. Szkutak - Senior Vice President, Chief Financial Officer  Diego Piacentini - Senior Vice President, Merchandising  Richard L. Dalzell - Senior Vice President, Chief Information Officer

4. Product description  The company, together with third parties, sells various product categories, such as books, music, DVDs, inbox video downloads, VHS, magazines and newspapers, video games, software, Amazon shorts, electronics, audio and video, cameras and photos, cell phones and service, computers and PC hardware, office products, musical instruments, outlet, home and garden products, bed and bath products, furniture and decor, gourmet food, kitchen and house wares, pet supplies, automotives, tools and hardware, industrial and scientific, apparel and accessories, shoes, jewelry and watches, grocery, beauty, health and personal care, sports and outdoors, toys and games, and baby products.

5. Market share YearRevenueGross profitTotal Net Income Dec 0610,7711.02,456.0190.0 Dec 058,490.02,039.0359.0 Dec 046,921.11,602.0588.5 Company TypePublic (NASDAQ (GS): AMZN)AMZN Fiscal Year-EndDecember 2006 Sales (mil.) $10,711.0 1-Year Sales Growth 26.2% 2006 Net Income (mil.) $190.0 1-Year Net Income Growth (47.1%) 2006 Employees 13,900 1-Year Employee Growth 15.8%

6. Main competitors Amazon.co m Barnes&No ble Columbia house Ebay Annual sales10,771.05,261.3401.95,969.7 Employees13,90039,0002,30013,200 Market Capital 37,881.22,331.20.046,544.1

7. Marketing strategy  Jeff Bezos vision (challenge) of the company: Build world’s most consumer-centric company Establish a place where customers could buy everything  Amazon Marketing communications strategy is to: Increase customer traffic to our websites Create awareness of our products and services Promote repeat purchases Develop incremental product and service revenue opportunities Strengthen and broaden the Amazon.com brand name

8. What made the company successful?  Amazon was pioneer in trying new technology: One-click shopping Product review information Purchase cycles E-mail alerts Recommendations Wish list The page you made  Free shipping  Creating partnerships with other companies  in 2004 American Customer Satisfaction Index gave Amazon.com a score of 88 which was at the time, the highest customer satisfaction score ever recorded in any service industry, online or offline.

9. Top E-tailors in books, toys, videos and music

10. Doing great but not earning profits…

11. Implementation plan  Amazon was spending too much money on marketing purposes which didn’t have any effect on earning more profits  Amazon made some bad and ineffective investment which resulted in company’s loss  They were adding products to fast what also had an impact on company’s loss  Being first in technology features among other companies caused company to spend huge amounts of money

12. Implementation plan (cont’d)  Not focusing on profits made the company constantly dealing with losses  They should focus more on the selling products that gave them biggest revenues (books, toys, videos and music)