Founder Jeff Bezos was born
in January 12, 1964 at New Mexico,
USA. He enrolled in physics programme at
Princeton University later on
switched to electrical eng. & computer science. Bezos started at
D.E.Shaw wall street company as computer specialist and became vise president at 28 years old.
In 1995, he launched the bookselling site Amazon.com and was
chosen as Time person of the year in 1999. In 2013, he purchased The
Washington Post newspaper.
Today (2014) he is still CEO of Amazon which is a 145B$ company with 75B$ sales revenue, 20B$ gross income and 274M$
net income in 2013.
Amazon’s Business Model Cogwheel consists of Low prices, Large Selection
and Convenience strategies. It started with 1 category in 1995 and increased to 18 category in 2014.
In 1997 books, music, video was %100
of products and in 2014 these three categories are just %35 of all products. Some new examples are Kindle and Fire Phone and Fire TV
Amazon has several services including Amazon Instant Video: video on
demand, Amazon Fresh: ordering groceries online, Amazon Web Services: cheap and fast cloud platform. It also owns large number of web sites.
Some examples are IMDB: internet
movie database, Zappos.com: online shoe and clothing shop, Alexa.com which provides
commercial web traffic data
Amazon started with Web 1.0 and evolved with Web right now using Web 4.0
opportunities with products like Amazon
Dash and Prime AIR.
In terms of digital marketing it has done a lot with pioneering A/B testing in 1997. In 2001, for the first time in its history, Amazon implemented software
to measure its costs for each shipped product. It used real-time optimization
and ever-improving metrics.
Jeff Bezos says “Online, we can show half of our customers’ one thing
and half of customers another, and very quickly get some results back on how
people actually behave”.
Other digital marketing tools used by Amazon such as experimental
marketing, network economy, user experience and gamification are explained in
the following slides.
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