ACE Innovation Challenge 2011

Amazon Prime is a key membership program offered by Amazon.com providing customers with “All You Can Eat” Express Shipping. In North America, for an annual fee of $79, members receive unlimited 2-day shipping on all orders and overnight shipping for $3.99. It works for all product categories and there is no minimum purchase requirement. Also, members are able to share the benefits with up to four family members in the same household.

Amazon launched Student Prime and Amazon MOM, a modified version of Prime, with an intent of targeting the Prime offering towards specific customer segments.

You can read more about these offerings using the links below:

Amazon Prime - http://amzn.to/amazonprimeprogram

Amazon Student Prime - http://amzn.to/amazonstudentprogram

Amazon MOM - http://amzn.to/amazonmomprogram

1. Write a critique of the Amazon Prime strategy (Specified Limit - 1 page).

2. Based on your analysis and research, identify a potential customer segment within North America, towards which the Prime offering can be targeted next. Also, identify the biggest opportunities and risks in launching this type of service.

As part of this analysis, you are required to cover the following aspects (Specified Limit - 3 pages):

Definition of the offering Promotion Strategy for the offering Price point for the offering and the reasoning for the same Market size and cash flow projections for the next 5 years The implications of the proposed Prime offering on Transportation, Warehouse and

Customer Service teams

Please refer to the guidelines specified while documenting your submission.

For any queries, write in to avantiks@amazon.com.

Good Luck !

Amazon.com Confidential The ACE Challenge 2011