1. Donald Tabor Charles Range Demetrius Ferguson James Menzies Ningchen Xiong

2. Agenda Firm overview and initiative Current retail strategy mix Target market Value proposition Pros and cons of initiative Urgency of initiative Fit of initiative Implication on current retail strategy mix

3. Firm Overview & Initiative Large E-commerce presence Expand into a brick and mortar retail location in NYC Kiosks in California Sample sales and data collection Motives  Increase sales  Ease distribution and returns  Marketing and branding

4. Amazon’s Current Retail Strategy Mix Product  Diversity Price  Low Location  Internet  New brick and mortar Communication  Online promotion Operations Management  88,400 employees across all business functions

5. Target Market Current target market: Anyone  Current market must have Internet access  Outliers include youth and elders  Amazon addresses all non-perishable consumer needs Brick and mortar target market: NYC population Streamlined inventory matching NYC purchase data Large electronics inventory targeting young adults

6. Value Proposition Selection  Widest selection of goods on the internet  Consumer can find everything they need - improves the E-commerce search function Convenience  Store is online, consumers do not have to leave their house  Delivery is quick Price  Amazon offers extremely low prices due to their low overhead costs prices due to their low overhead costs

7. Pros of a Brick and Mortar Location 61% of consumers prefer to shop in a bricks and mortar retail locations 40% of shoppers that go to brick and mortar locations spend more than they intend to before arriving at the store

8. Pros of a Brick and Mortar Location Allows the customer to physically see the products they want to potentially purchase (Tablets) Opening in New York City, which has the highest population in the US Stores may double as distribution and return center for online purchases

9. Cons of a Brick and Mortar Location Storefront costs Product selection? Low price standard and high cost of operations Data reliance (weakness?)

10. Urgency of Initiative Brick and Mortar location developed to compete in electronics and gadget market Distribution center: supply chain simplicity and ease Conclusion: low-moderate urgency  Dominating E-commerce market (largest online retailer)  Tactic to grow the company as a whole

11. Fit of Initiative to Target Market Streamlined product offerings in brick and mortar location  Based on NYC consumer e-commerce purchasing activity (data collection) Amazon must:  Assess needs of NYC population  Provide quality customer service  Adjust to and identify seasonality of purchases Initiative & elder consumer market  Fear of online shopping

12. Implications to Current Retail Strategy Mix No implications to current E-commerce retail strategy mix Potential Issues:  Operations cost unbearable -Renting costs -Staffing - Maintenance of facility - Marketing and promotion Conclusion:  If the brick and mortar location is unsuccessful the impact will be minimal to the overall success of Amazon

13. Questions?