E-commerce PresentationE-commerce PresentationOnline RetailerOnline Retailer

Amazon.comAmazon.comGroup 3

20 April 2005

> Amazon.com is a online retailers• Use a website to merchandise• Rely on third party service providers to delive

r the goods

> Amazon.com is a online retailers• Use a website to merchandise• Rely on third party service providers to delive

r the goods

Business ModelBusiness ModelBusiness ModelBusiness Model

FounderFounderFounderFounder

> 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 Prodi

gy 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 Prodi

gy 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

MilestoneMilestoneMilestoneMilestone

> 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

MilestoneMilestoneMilestoneMilestone

Part 1 Value PropositionPart 1 Value PropositionPart 1 Value PropositionPart 1 Value Proposition

CyberstoreCyberstore> A worldwide shop with the largest number of goods.

• Worldwide Book Shop Cyberstore with the world’s largest selection

ShoptainmentShoptainment> Continually enhance the customer experience

• “Recognize Customer’s Real Need with tailor-made recommendations”

• Effectively provide off-line shopping experiences

CyberstoreCyberstore> A worldwide shop with the largest number of goods.

• Worldwide Book Shop Cyberstore with the world’s largest selection

ShoptainmentShoptainment> Continually enhance the customer experience

• “Recognize Customer’s Real Need with tailor-made recommendations”

• Effectively provide off-line shopping experiences

Part 1 Value Proposition Part 1 Value Proposition Part 1 Value Proposition Part 1 Value Proposition

4 Core Benefits4 Core Benefits> One-Shop Service

> Variety of Product Selection

> Convenience

> Internet Transition Security

4 Core Benefits4 Core Benefits> One-Shop Service

> Variety of Product Selection

> Convenience

> Internet Transition Security

Part 1 Value PropositionPart 1 Value PropositionPart 1 Value PropositionPart 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 PropositionPart 1 Value PropositionPart 1 Value PropositionPart 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 OfferingPart 2 Marketspace OfferingPart 2 Marketspace OfferingPart 2 Marketspace Offering

Critical ChangeCritical 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 ChangeCritical 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 PartnershipSupplier PartnershipSupplier PartnershipSupplier 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 ShopOne ShopServiceService

SecuritySecurity

VarietyVarietyProductProduct

SelectionSelection

EasyEasyAccessAccess

(Convenience)(Convenience)

Technology

IntegratedPartner Offers

Strong DistributionNetwork

Wide Reachto Customers

Strong Brand Name

Multiple Contact Pts

Employee Commitment

Popular Website

HMV

Toys”r”us

CDNOW

39 MillionAffiliates

Catalog

Online

E-mailHyperlink

Bertelsmann

SearchEngine

Visa

Yahoo!

1-ClickThroughOracle

Part 3Part 3Resource Resource SystemSystem

Part 3Part 3Resource Resource SystemSystem

Part 4 Financial ModelPart 4 Financial ModelPart 4 Financial ModelPart 4 Financial Model

> Revenue MixRevenue Mix

> Cost MixCost Mix

> Profitability TrendProfitability Trend

> Revenue MixRevenue Mix

> Cost MixCost Mix

> Profitability TrendProfitability Trend

ConclusionConclusionConclusionConclusion

FounderFounderFounderFounder

ValueValueValueValue OfferingOfferingOfferingOffering ResourceResourceResourceResource FinanceFinanceFinanceFinanceIntro.Intro.Intro.Intro.

MilestoneMilestoneMilestoneMilestone

ShopetainmentShopetainmentShopetainmentShopetainment

CyberstoreCyberstoreCyberstoreCyberstore

Six mainSix mainCategoriesCategories

Six mainSix mainCategoriesCategories

SupplierSupplierPartnershipPartnership

SupplierSupplierPartnershipPartnership

Four CoreFour CoreBenefitsBenefits

Four CoreFour CoreBenefitsBenefits

CapabilitiesCapabilitiesCapabilitiesCapabilities

ResourcesResources& Activities& Activities

ResourcesResources& Activities& Activities

RevenueRevenueMixMix

RevenueRevenueMixMix

Cost MixCost MixCost MixCost Mix

ProfitProfitTrendTrend

ProfitProfitTrendTrend

Group MembersGroup MembersGroup MembersGroup Members

Doris WongDoris Wong 023001023001

Ivan TongIvan Tong 023009023009

Bobby ChanBobby Chan 023075023075

Yan ChanYan Chan 023096023096

Alice ShamAlice Sham 023098023098

Rita ChungRita Chung 023102023102

End of Our PresentationEnd of Our Presentation