Where Did You Find the Book?

Where Did You Find That Book

Learning Team D

BIS 219

July 17, 2012

Myles Jackson

Where Did you find that book

Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2.8 bn $1.5 bn $0.4 bn eBay Google AmazonAmazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven’t been compared because 1- sales have not been officially disclosed 2- they haven’t reach their fifth year.

Did you know: Amazon.com is a giant… E-commerce Y/Y growth for Q1 2011 +38% 3 × growth of market Market, cap $90 bn 2 × market cap, Customers 137 m 2 × # customers Employees 33,700 15 × more than Annual revenue $34 bn 16% more than Internet traffic rank 16th before Retail brand 1st before Paid out $1.2 bn to buySource: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011.

Not that disruptive of a model:“sell and deliver stuff to customers” Amazon perfectly understood the old-economy retail cocktail: low prices, large selection, convenience/customer experience. “I cant imagine that ten years from now [customers] are going to say: „I really love Amazon, but I wish their prices were a little higher‟” Low Large prices selection Jeff Bezos Convenience

Amazon began with books… Competition Product Search Market was large and A book does not have to Search would make it fragmented. be accurately described: easy for customers to it is a universal and find books among the Contrary to the simple object. entire database. concentrated music industry, no player would Book distributors were Amazon repeatedly have the power to freeze already exchanging appears first on Google‟s out a new entrant. digitalized listing. results page. Source: Robert Spector, Amazon.com: Get Big Fast (2002)

needed to get big fast Buying power Brand & trust Cost management With great size comes a It is logical to amortize Trust is hard earned, better...