E-commerce Presentation Online Retailer Amazon.com Group 3 20 April 2005

> Amazon.com is a online retailers Use a website to merchandise Rely on third party service providers to deliver the goods > Amazon.com is a online retailers Use a website to merchandise Rely on third party service providers to deliver the goods Business Model

FounderFounder > Jeffrey Preston Bezos President Chief executive officer Chairman of the board of Amazon.com. > Jeffrey Preston Bezos President Chief executive officer Chairman of the board of Amazon.com.

> July 1994 : Jeff Bezoes founds Amazon.com > June 1995 : Bezoes launches Amazon.com Inc.on Web > July 1997 : Amazon.com enters into agreement with Yahoo! > September 1997 : Amazon.com become exclusive bookseller on Prodigy shopping network > March 1998 : Amazon.com Kids goes online > June 1998 : Amazon.com opens music store > September 1998 : Amazon.com and Yahoo! Strike Global Merchant Agreement > October 1998 : Amazon.com enters European book market > July 1994 : Jeff Bezoes founds Amazon.com > June 1995 : Bezoes launches Amazon.com Inc.on Web > July 1997 : Amazon.com enters into agreement with Yahoo! > September 1997 : Amazon.com become exclusive bookseller on Prodigy shopping network > March 1998 : Amazon.com Kids goes online > June 1998 : Amazon.com opens music store > September 1998 : Amazon.com and Yahoo! Strike Global Merchant Agreement > October 1998 : Amazon.com enters European book market MilestoneMilestone

> February 1999 : Amazon.com invests in DrugStore.com > March 1999 : Amazon.com invests in Pets.com > March 1999 : Amazon.com launches online auction site > April 1999 : Amazon.com agrees to purchase LiveBid.com, Internet provider of live auctions > February 1999 : Amazon.com invests in DrugStore.com > March 1999 : Amazon.com invests in Pets.com > March 1999 : Amazon.com launches online auction site > April 1999 : Amazon.com agrees to purchase LiveBid.com, Internet provider of live auctions MilestoneMilestone

Part 1 Value Proposition Cyberstore > A worldwide shop with the largest number of goods. Worldwide Book Shop  Cyberstore with the world’s largest selectionShoptainment > Continually enhance the customer experience “Recognize Customer’s Real Need with tailor-made recommendations” Effectively provide off-line shopping experiencesCyberstore > A worldwide shop with the largest number of goods. Worldwide Book Shop  Cyberstore with the world’s largest selectionShoptainment > Continually enhance the customer experience “Recognize Customer’s Real Need with tailor-made recommendations” Effectively provide off-line shopping experiences

Part 1 Value Proposition 4 Core Benefits > One-Shop Service > Variety of Product Selection > Convenience > Internet Transition Security 4 Core Benefits > One-Shop Service > Variety of Product Selection > Convenience > Internet Transition Security

Part 1 Value Proposition Segmentation > Sites in 7 Countries: USA, Canada, United Kingdom, Germany, Japan, France, China Over 39 million active customer accounts Segmentation > Sites in 7 Countries: USA, Canada, United Kingdom, Germany, Japan, France, China Over 39 million active customer accounts

Part 1 Value Proposition Competitors > Amazon.com first entered the market > Major competitor: Barnes and Noble > Competitor: Borders Books and Music Competitors > Amazon.com first entered the market > Major competitor: Barnes and Noble > Competitor: Borders Books and Music

Part 2 Marketspace Offering Critical Change > Amazon.com is no longer just an online bookstore. We’re committed to the communities we serves. We live here, too. And we believe good, works. (by Wal-mart) > Products beyond books to  make Amazon.com an online Wal-Mart Critical Change > Amazon.com is no longer just an online bookstore. We’re committed to the communities we serves. We live here, too. And we believe good, works. (by Wal-mart) > Products beyond books to  make Amazon.com an online Wal-Mart

Supplier Partnership > Books………………………. > Apparel & Accessories.. > Electronics………………... > Toys & Games………….. > Kitchen & Housewares. > Tools and Hardware….. > Others: > Books………………………. > Apparel & Accessories.. > Electronics………………... > Toys & Games………….. > Kitchen & Housewares. > Tools and Hardware….. > Others:

One Shop Service Security Variety Product Selection Easy Access (Convenience) Technology Integrated Partner Offers Strong Distribution Network Wide Reach to Customers Strong Brand Name Multiple Contact Pts Employee Commitment Popular Website HMV Toys”r”us CDNOW 39 Million Affiliates Catalog Online Hyperlink Bertelsmann Search Engine Visa Yahoo! 1-Click Through Oracle Part 3 Resource System

Part 4 Financial Model > Revenue Mix > Cost Mix > Profitability Trend > Revenue Mix > Cost Mix > Profitability Trend

ConclusionConclusion Founder ValueOfferingResourceFinanceIntro. Milestone Shopetainment Cyberstore Six main Categories Supplier Partnership Four Core Benefits Capabilities Resources & Activities Revenue Mix Cost Mix Profit Trend

Group Members Doris Wong Ivan Tong Bobby Chan Yan Chan Alice Sham Rita Chung

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