1. Amazon.com INC Presented to: Mr. Zaffar Manan

4. Internal Factors

7. External Factors

10. TWOS Strategy

11. WT strategies ST strategies T H R E A T WO strategies SO strategies O P P O R T U N I T Y WEAKNESS STRENGTHS

12. Internal Factor Evaluation Matrix IFE Matrix

13. IFE Strengths .20 4 .05 Effective promotions and advertisements. 8 .15 3 . 05 Expansion has propelled Amazon.com in innumerable directions. 9 2.00 .55 .15 3 .05 Customized home pages for website Members. 7 .15 3 .05 Product Offering is easily understandable. 6 .20 4 .05 Enables customers to compare prices across different products being sold by Amazon 5 .15 3 .05 Amazon has proven themselves to be the most successful retailer online 4 .20 4 .05 Efficient Web Browsing 3 .40 4 .10 Worlds Biggest Book Store 2 .40 4 .10 Large customer database. 1 Strengths TWS Rated Weighted INTERNAL FACTORS

14. IFE Weakness .65 .45 2.65 1.00 TOTAL (ST + WK) .20 1 .05 Fear of competition is high as there are low barriers to market entry 5 .10 2 .05 More browsers than buyers 4 .20 2 .10 A huge need of adding values to the online shopping experience (aesthetics needs). 3 .05 1 .05 Purchasing items from distributors rather than manufacturers 2 .10 2 .05 Lack of business skills in all products being sold 1 Weakness TWS Rated Weighted INTERNAL FACTORS

15. External Factor Evaluation Matrix EFE Matrix

16. EFE Strengths .55 .15 .05 Growth in consumer to consumer auctions 7 .15 .05 Increase in acceptance of E-Commerce 6 .20 .05 Increasing availability of other access channels is providing more opportunities for customers to shop online 5 .15 .05 Number of women internet users are growing 4 .20 .05 More people are willing to buy online 3 .40 .15 More things can be easily sold on the internet 2 .40 .10 Market size is growing. 1 Opportunities TWS Rated Weighted EXTERNAL FACTORS

17. EFE Weakness . Some retailers may get jealous if Amazon promotes one company more than another 6 Customers still prefer try-and-buy shopping habits for clothing 7 .65 .45 2.65 1.00 TOTAL (ST + WK) .40 2 .20 Threat that retailers will draw back the partnership at the end of the alliance agreement 5 .10 2 .05 Customer might shop at partner's website for the next purchase after the first shopping at Amazon 4 .20 2 .10 High Taxation possibilities 3 .05 1 .05 New entry barriers in the industry 2 .10 2 .05 High competition from direct and indirect sources 1 Threats TWS Rated Weighted EXTERNAL FACTORS

18. Strategic position and Action Evaluation Matrix SPACE Matrix

19. SPACE MATRIX: 5 Average 35 Total 4 5 4 5 6 6 5 FINANCIAL STRENGTHS

20. SPACE MATRIX: -2.33 Average -14 Total -2 -1 -1 -4 -5 -1 RATES COMPETITIVE ANALYSIS

22. SPACE MATRIX: 3.80 Average 19 Total 2 4 4 5 4 RATES INDUSTRY STRENGTH

24. SPACE MATRIX I S C A F S E S Aggressive

26. Amazon Growth Source : www.iwishiknew.com 15.4% 1-Year Employee Growth 9,000 2004 Employees 1,567.1% 1-Year Net Income Growth $588.5 2004 Net Income (mil.) 31.5% 1-Year Sales Growth $6,921.1 2004 Sales (mil.) December Fiscal Year-End

27. Boston Consulting Group Matrix BCG Matrix

28. BCG Matrix Growth Rate Relative Market Share Low 0.0 High 1.0 Medium 0.5 High +20 Low -20 Medium 0 Question Mark “?” Star “*” Cash Cows Dogs

29. Grand Strategy Matrix

30. Grand Strategy Matrix Rapid Market Growth Quadrant II Quadrant I Weak Strong Competitive Competitive Position Position Quadrant III Quadrant IV Slow Market Growth

32. IE Matrix

33. IE MATRIX: 2.2 1.8 Others 2.65 Amazon.com EFE IFE DIVISIONS

34. 1.0 1.0 2.0 2.0 3.0 3.0 4.0 LOW WEAK MEDIUM HIGH AVERAGE STRONG EFE SCORES IFE SCORES Build & Grow IE - Matrix

35. Quantitative Strategic Planning Matrix

36. CP Matrix