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NAME : SHIRISH KUMAR SRIVASTAVA

CLASS : MBA ( MARKETING )

SEMESTER : IV

ASSIGNMENT : E MARKETING

Amazon.com often referred to as simply Amazon,


is an American electronic commerce and cloud computing company with headquarters
in Seattle, Washington. It is the largest Internet-based retailer in the United States.
Amazon.com started as an online bookstore, later diversifying to sell DVDs, Blurays, CDs, video downloads/streaming, MP3downloads/streaming, audiobook downloads/stre
aming, software, video games, electronics, apparel, furniture, food, toys and jewelry. The
company also produces consumer electronicsnotably, Amazon Kindle e-book
readers, Fire tablets, Fire TV and Fire Phoneand is the world's largest provider of cloud
infrastructure services . Amazon also sells certain low-end products like USB cables under its
in-house brand AmazonBasics.
Amazon has separate retail websites for United States, United
Kingdom and Ireland, France, Canada, Germany, Italy, Spain,Netherlands, Australia, Brazil,
Japan, China, India and Mexico. Amazon also offers international shipping to certain other
countries for some of its products. In 2011, it professed an intention to launch its websites
in Poland and Sweden.
In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States
by market capitalization.
The company was founded in 1994, spurred by what Bezos called his "regret minimization
framework," which described his efforts to fend off any regrets for not participating sooner in
the Internet business boom during that time. In 1994, Bezos left his employment as vicepresident of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle. He began to work
on a business plan for what would eventually become Amazon.com.
Jeff Bezos incorporated the company as "Cadabra" on July 5, 1994. Bezos changed the name
to Amazon a year later after a lawyer misheard its original name as "cadaver". The company
went online as Amazon.com in 1995.
Bezos selected the name Amazon by looking through the dictionary, and settled on "Amazon"
because it was a place that was "exotic and different" just as he planned for his store to be;
the Amazon river, he noted was by far the "biggest" river in the world, and he planned to

make his store the biggest in the world. Bezos placed a premium on his head start in building
a brand, telling a reporter, "There's nothing about our model that can't be copied over time.
But you know, McDonald's got copied. And it still built a huge, multibillion-dollar company.
A lot of it comes down to the brand name. Brand names are more important online than they
are in the physical world." Additionally, a name beginning with "A" was preferential due to
the probability it would occur at the top of any list that was alphabetized.
CHALLENGES FOR AMAZON IN USA (DEVELOPED COUNTRY):

Competitors

In USA there are lots of competitors for amazon like alibaba,ebay


walmart, bestbuy,ikea,shop.com which poses challenges for amazon
to deal with it.

Credit frauds

There are lots of hacker out there which keep their open eyes on
customer account to hack their account and steal their money which
ultimatelu hinder the position of Amazon

Brick Store

Not only online site poses challenges but also brick store poses
challenges for amazon.For ex - wallmart

CHALLENGES FOR AMAZON IN INDIA (DEVELOPING COUNTRY):

1. Internet penetration is low: Internet penetration is low in India as many customers


are not using internet and if they are, then the quality/speed of internet is low.
2. E-mail address churning: It is seen that a lot of customers change their primary email address over a few months, which makes it critical for the company to recognize
them or to update their profile again.
3. Touch & Feel: Customers are in a habit of purchasing products physically, which
makes it difficult for this effect.
4. Security: Customers feel unsecured for online transaction as it can lead to frauds.
5. Long delivery timing: Delivery time can be in days, weeks for which customers
cannot wait.
6. Quality & physical condition of the product: Online products cannot be touched,
therefore, it is not possible to tell anything about the quality or physical condition of
the product.
7. Shipping cost: The shipping cost is more if we purchase online, and if we select the
option of COD then the shipping cost increases.

8. Customer satisfaction: There is no interaction between the customer and the


supplier, therefore, the scope of convincing the customer does not exist.
9. Price sensitive customers: Many customers are price sensitive, they compare prices
online on different e- commerce websites, and whichever website has a product with
less price the customers purchase from that very website.
10. Government policies: Tax structure of India varies from sector to sector. As well as
the changing government policies creates accounting problems for the Indian ecommerce companies.
11. Intense competition: There are a variety of e commerce companies which are
creating an intense competition among themselves.
12. Availability of delivery: In many cities the availability of products is not available.
For eg, Xiaomi Redmi mobile phone delivery is not available in Lucknow and many
cities of UP.
13. Logistics: Most of the town and small villages are still not covered under serviceable
area of many of the courier and logistic companies. Ecommerce is hampered in a big
way owing to the limited services offered by the courier service companies.
14. Competitors In India there are lots of competitors for amazon like flipkart,ebay
snapdeal, myntra,shopclues,homeshop18 which poses challenges for amazon to deal with
it.
15. Credit frauds There are lots of hacker out there which keep their open eyes on
customer account to hack their account and steal their money which ultimately hinder the
position of Amazon
16. Illeteracy Most of the Indian people are illiterate which posed challenge for amazon to
promote their product.
Opportunities in respect to INDIA & USA are as follows:
1. Changing trends: E commerce is fast & effective even financial transactions can be
made from any part of the world.
2. Global expansion: E commerce can be operated from anywhere and anytime without
3.
4.
5.
6.

any interruption.
High availability: Customers can purchase products 24*7.
Wide business growth: E commerce has a wider scope and broaden vision to grow.
Advertising: Advertising is cost effective as compared to offline system.
Save Time With just a couple of clicks of the mouse, customer can purchase his
shopping orders and instantly move to other important things, which can save time.