When you think about ecommerce, you think about Amazon. But how did a company that started with online books come to dominate an estimated one third of ecommerce in the U.S.? In the 72 slides above, global consulting boutique faberNovel breaks down Amazon’s business and strategy. The keys to Amazon’s success are 1) the Internet imposes no limits on how much Amazon can sell; 2) its control of customer accounts and loyalty, and 3) and a growing ecosystem that is helping it cement its place in the world of digital goods as well.
It’s instructive to see how Amazon has expanded over the years and moved away from its reliance on books, music, and movies. You also forget that along the way, Amazon piled up $3 billion in losses between 1995 and 2003. Now it’s got $34 billion in annual revenue, and is spitting out $1 billion a year on profits. Who says you can’t spend your way to profitability?
The slides are a real deep dive into Amazon’s business model and future prospects. Every year faberNovel puts together one of these strategy presentations. In the past it’s analyzed Google (twice), and Apple.
Amazon.com, Inc. (AMZN), is a leading global Internet company and one of the most trafficked Internet retail destinations worldwide. Amazon is one of the first companies to sell products deep into the long tail by housing them in numerous warehouses and distributing products from many partner companies. Amazon directly sells or acts as a platform for the sale of a broad range of products. These include books, music, videos, consumer electronics, clothing and household products. The majority of Amazon’s...
faberNovel is an innovation agency that helps organizations think and act like startups. The company works with clients and partners all over the world helping them to discover new business models, use a startup approach to growth, prototype new ideas, and connect with the broader startup ecosystem for success. Founded by serial entrepreneur Stephane Distinguin in 2003, faberNovel began in Paris and now operates from Paris, San Francisco, New York City, Lisbon and Moscow. In San...
Seattle, WA
San Diego, CA
Menlo Park, CA
Boston, MA
Berlin, Germany
San Francisco
