1. Adriana Masnyj Raquel Flores Andrew MacDonald Christofer Russo

2. Company Overview  Amazon was founded by Jeff Bezos in 1994 and was launched online the next year  Was first an online bookstore  Soon diversified to selling CDs, DVDs, and MP3s  By 2001, the company was generating losses of up to $1.4 Billion  Bezos decided to restructure the company’s plan  He started by laying off 15% of its workforce (1,300 workers)  They developed algorithms to become more efficient in storing and delivering merchandise  They also expanded by selling products from other companies’ warehouses  By the end of 2001 they had their first profit (1 cent per share)  Today, Amazon is America’s largest online retailer with nearly three times the sales of the runner-up

3. Goals  At Amazon, we want to be the largest online retailer in America and keep on growing  We want to be the number one e-book seller by being the most convenient and competitive Strategy  We will focus on the e- book sales as that is where lies all the opportunities  People will buy one or two e-reader devices but will use them to read multiple books  We want to attract even users or other brands to our bookstore

5.  Our mission underlines our purpose as a company. We make it our mission to promote a new and improved way of reading in which : ◦ Natural resources are protected by eliminating the need of paper ◦ Wireless device where any book in the world can be delivered to a user in seconds ◦ Readers are provided with a convenient method to carry their library  Our vision is to make reading more accessible and more fun in a fast evolving world. Company Mission and Vision

6. VRINE Model Value - 4  Enables Amazon to take advantage of a large expanding market  Sales of e-books has outnumbered sales of hardcover books Rare - 3  Recently started to expand with all new devices  Still many people who have not tried devices Inimitability - 1  E-reader industry is growing very quickly and many new devices are coming into the market Nonsubstitutability - 3  Books, laptops, magazines, newspaper Exploitability - 4  Amazon has good reputation  Bookstore is easily accessible

7.  Financial perspective o Profitability - measure market share, target: increase profit gain, initiatives: enhance productivity strategy o Revenue Growth - measure of revenue, target: bring in more revenue, initiatives: market cheap Kindle, make apps available on other devices  External perspective o Customer satisfaction - measure by customer surveys, target: increase of customers, initiatives: good quality of product and service o Good price - measure of # of Kindles sold, target: increase of e-books sales, initiatives: cheaper device o Reliable delivery - measure of # of seconds to download book, target: easier access to e-books, initiative: good relationship with service provider

8.  Internal Business Process o Quality - measure of # of complaints/ comments, target: produce effective and efficient devices, initiatives: improving on quality control o Design productivity - measure by customer needs, target: create a convenient device, initiatives: research what consumers want o Availability - measure order and delivery time, target: raise e-book sales, initiatives: maintain and update features  Learning and Growth o Innovation - measure by customer needs, target: Provide the best e- reader, initiatives: Learn from previous versions to make improvements o Leadership - measure by # of e-books sold, target: Kindle in every household, initiatives: Make Kindle format compatible with other devices

11.  Pools Generating Profit: ◦ E-Book Sales (25%) ◦ Complimentary Products (20%) ◦ Newspaper/Magazine Subscriptions (10%) ◦ Component Manufacturing (7.5%) ◦ Device Manufacturing (2.5%)

13.  We will be successful in the E-reader industry. We will accomplish this by selling the device for a lower cost than competitors. Our low profit devices will offer more availability to sell our eBooks to a higher market at a higher price.  Winning for our company means to achieve our goal of being the best and most convenient provider for eBooks.

14.  Resources and capabilities ◦ Amazon Bookstore ◦ Reputation as a reliable online retailer ◦ Application free on other devices  Opportunities ◦ Bad economy; lowered price of device ◦ Want and hype for eReaders ◦ Access to wireless bookstore wherever one is  Barriers ◦ Competition, barriers to entry are low ◦ We are going to maintain being an eReader device  What we need to win ◦ Relationship with AT&T and publishers ◦ Relationship with other devices to allow Apps

15. Thank you!