ACHARYA JAGADISH CHANDRA BOSE COLLEGE

NAME :- UDAY ROUTH

ROLL NO. :- 87
COLLEGE ID :- 20230264
COURSE NAME :- BCOM(HONOURS)
CLASS :- SEMESTER 1
TOPIC :- PROJECT PROPOSAL
 INTRODUCTION OF AMAZON

COMPANY PROFILE : Amazon.com, Inc., founded on July 5, 1994, by Jeff Bezos, is a

multinational technology and e-commerce giant headquartered in Seattle, Washington.
Renowned as one of the world's largest and most diverse online retailers, Amazon has
expanded its operations far beyond its initial focus on book sales. The company operates
across a broad spectrum of industries, including e-commerce, cloud computing, artificial
intelligence, digital streaming, and consumer electronics. Amazon is known for its customer-
centric approach, aiming to provide an extensive selection of products and services at
competitive prices. The company's commitment to innovation is evident in its development of
cutting-edge technologies such as drone delivery and its leadership in cloud computing
through Amazon Web Services (AWS). With a global presence and a strong emphasis on
sustainability, including a pledge to be carbon-neutral by 2040, Amazon continues to shape
the future of e-commerce and technology on a global scale.

MISSION : Amazon's mission statement is to be Earth’s most customer-centric company,

where customers can find and discover anything they might want to buy online, and
endeavors to offer its customers the lowest possible prices.

VISION : As of my last update, Amazon's vision is to be the world's most customer-centric

company; to build a place where people can come to find and discover anything they might
want to buy online.

LONG-TERM GOALS AND ASPIRATIONS : Amazon's long-term goals have

been centered around innovation, customer satisfaction, and global expansion. Some
key aspects of their long-term goals include:

1. Innovation: Amazon has a strong focus on technological innovation. This includes

the development and implementation of new technologies, such as drone delivery,
artificial intelligence, and automation in their fulfillment centers.
2. Customer Satisfaction: The company places a high priority on providing an
exceptional customer experience. This involves not only offering a wide range of
products but also ensuring fast and reliable delivery, excellent customer service, and
continuous improvement based on customer feedback.
3. Global Expansion: Amazon has expanded its operations globally, aiming to reach
customers worldwide. The company has invested in building distribution centers and
data centers in various countries to enhance its global presence.
4. Diversification: Amazon has diversified its business beyond e-
commerce. The company has entered industries such as cloud computing
 (Amazon Web Services), streaming services (Amazon Prime Video), and
smart devices (Amazon Echo) to broaden its reach and revenue streams.
5. Sustainability: Amazon has committed to sustainability goals, including becoming
carbon-neutral by 2040. The company is actively working towards reducing its
environmental impact through initiatives such as renewable energy investments,
sustainable packaging, and more.
 PROBLEM STATEMENT
BACKGROUND : This project focuses on one of the primary challenges in the E-
commerce industry that is the prevalence of counterfeit products, which jeopardizes
consumer trust and raises concerns about product quality and safety. The open nature of e-
commerce platforms allows unauthorized sellers to exploit the system, impacting both
customers and legitimate businesses. Additionally, issues such as data breaches and privacy
concerns have become more prevalent as online transactions continue to rise.

PROBLEM STATEMENT : To address challenges in the e-commerce business, a multi-

faceted approach is essential. Implementing advanced AI-driven technologies for fraud
detection and product authentication can significantly curb the prevalence of counterfeit
goods. Strengthening regulatory compliance and collaborating with relevant authorities can
enhance the legal framework, deterring illicit practices. E-commerce platforms should invest
in robust cybersecurity measures to protect customer data and privacy, fostering trust among
users.

CHOOSING AMAZON : Choosing Amazon often stems from its unparalleled

convenience, vast product selection, and efficient delivery services. Amazon's user-friendly
platform allows customers to effortlessly browse and purchase a diverse range of products,
from everyday essentials to niche items, all in one place. The convenience of Prime
membership further enhances the shopping experience with benefits like fast and often free
shipping. Additionally, Amazon's robust customer reviews and ratings provide valuable
insights for informed decision-making. The company's foray into various services, including
streaming and cloud computing, adds value for users seeking multifaceted benefits. Overall,
the combination of convenience, extensive offerings, reliable logistics, and innovative
services makes Amazon a preferred choice for many consumers.
 EXPANSION AND FUNDING OF THE BUSINESS
Global Market Penetration: Continuously expanding into new international
markets allows Amazon to reach a broader customer base. This involves adapting to local
regulations, preferences, and logistics while maintaining a global brand image.

Diversification of Product and Service Offerings: Introducing new product

categories and services, such as Amazon Web Services (AWS), Amazon Prime Video,
and Amazon Fresh, allows the company to tap into different industries and cater to a
wider range of consumer needs.

Acquisitions and Partnerships: Strategic acquisitions, like Whole Foods and

Zappos, and partnerships with other businesses enable Amazon to integrate new
capabilities and enter niche markets, contributing to overall business growth.

Investment in Emerging Technologies: Staying at the forefront of technological

advancements, such as artificial intelligence, machine learning, and voice recognition (as
seen with Alexa), enables Amazon to innovate and offer cutting-edge solutions that
attract new customers.

Enhancing Logistics and Fulfillment Networks: Continual improvements in

supply chain management and fulfillment centers allow Amazon to optimize delivery
speed and reliability, which is a crucial factor in customer satisfaction and market
dominance.

Subscription Services and Loyalty Programs: Expanding subscription services

like Amazon Prime not only increases customer loyalty but also provides a steady
revenue stream. Offering exclusive content and benefits incentivizes customers to engage
more deeply with the platform.

Targeting B2B Markets: Expanding into the business-to-business (B2B) sector

through platforms like Amazon Business caters to the procurement needs of enterprises,
creating a new revenue stream.

Investment in Sustainable Practices: Addressing environmental concerns and

promoting sustainability in its operations can enhance Amazon's brand image and attract
environmentally conscious consumers.

Innovation in Retail Formats: Experimenting with new retail formats, such as

Amazon Go cashier-less stores and the acquisition of physical retail spaces, allows
Amazon to bridge the gap between online and offline retail experiences.

Enhanced Customer Engagement: Improving customer engagement through

personalized recommendations, social media integration, and community-building
initiatives fosters a stronger connection with consumers and encourages repeat business.

For Funding :
Revenue Generation: The primary source of funding for Amazon is its revenue from e-
commerce sales. The company sells a vast array of products and services, earning income
through transactional fees, subscription services (such as Amazon Prime), and third-party seller
services.

Amazon Web Services (AWS): AWS is a major contributor to Amazon's revenue. By

providing cloud computing services to businesses, government organizations, and individuals,
AWS generates substantial income for Amazon.

Advertising Services: Amazon has developed a robust advertising platform that allows
businesses to promote their products on the platform. Advertising fees and sponsored product
placements contribute to Amazon's revenue.

Third-Party Seller Services: Fees charged to third-party sellers on the Amazon

marketplace for services like fulfillment, storage, and access to customers contribute to the
company's funding.

Prime Membership Fees: Amazon Prime, a subscription service offering benefits such as
free shipping, access to Prime Video, and more, generates revenue through membership fees. The
subscription model encourages customer loyalty.

Financing and Loans: Amazon has a program called Amazon Lending that provides loans
to eligible sellers on its platform. This financing option supports sellers in growing their
businesses, and the interest on these loans contributes to Amazon's revenue.

Investor Relations: Amazon raises capital through the sale of stocks. The company is
publicly traded on the NASDAQ stock exchange, and investors can purchase Amazon shares,
providing the company with equity capital.

Debt Issuance: Amazon may issue bonds and take on debt to fund its operations or specific
projects. The company's strong financial performance generally allows it to secure favorable
terms for debt financing.

Strategic Partnerships and Alliances: Collaborations with other businesses and strategic
partnerships can bring additional funding or resources. For example, acquisitions like Whole
Foods have provided Amazon with new revenue streams.

Continuous Innovation and Cost Optimization: Amazon's focus on innovation and

cost optimization contributes to its profitability, providing internal funding for new projects and
ventures.
 PROPOSED BENEFIT
Amazon offers a myriad of benefits to consumers, making it a preferred choice for online
shopping. The unparalleled convenience of a vast and diverse product selection, coupled with
competitive pricing, ensures that customers can find almost anything they need on the
platform. The efficiency of Amazon's logistics and delivery system, particularly through
services like Amazon Prime, provides swift and reliable shipping, enhancing the overall
shopping experience. Additionally, features such as customer reviews and ratings empower
users with valuable insights, aiding informed purchasing decisions.

CHANNELS OF DISTRIBUTION
Amazon utilizes a multi-faceted distribution strategy to reach customers efficiently. Its
primary distribution channel is its extensive network of fulfillment centers strategically
located worldwide. These centers act as hubs for storing, packing, and shipping products to
customers, ensuring timely delivery. Additionally, Amazon leverages a vast transportation
network, including a fleet of delivery vans, trucks, and partnerships with third-party carriers,
to facilitate last-mile delivery. The company also utilizes technology such as robotics and
automation within its fulfillment centers to optimize order processing. Beyond physical
distribution, Amazon's digital platform serves as a crucial channel, connecting customers to a
vast marketplace of products and services. Third-party sellers and vendors further contribute
to the distribution network, using Amazon as a platform to reach a global audience.

SUCCESS CRITERIA
Specific: Increase annual revenue by 20% through the expansion of product categories,
enhanced customer engagement, and the acquisition of new customers.

Measurable: Achieve a customer satisfaction rating of 90% or above based on feedback and
reviews on the platform. Additionally, track the growth of Prime memberships by 15% over
the next fiscal year.

Achievable: Implement cost optimization measures to improve operational efficiency,

reduce shipping costs, and enhance profitability. Leverage technological advancements in AI
and machine learning to streamline processes and improve customer recommendations.

Relevant: Align success criteria with Amazon's core business objectives, focusing on
customer-centric strategies, innovation, and sustainable growth. Ensure that the criteria
contribute to maintaining Amazon's position as a leader in the e-commerce and technology
industries.

Time-Bound: Achieve the specified revenue increase and customer satisfaction targets
within the next fiscal year, ensuring that milestones are regularly reviewed and adjusted to
meet evolving market conditions and business priorities.
 TIME TO BREAK-EVEN
I don't have real-time financial data, and predicting a specific break-even time for a company
like Amazon would require up-to-date financial information and market analysis. It is advised
to consult recent financial reports or seek insights from financial analysts for the latest
assessment of Amazon’s break-even timeline.

COST/BUDGET
I don't have real-time data, but typically, fixed costs for a company like Amazon may include
rent, salaries, and insurance. The company incurs significant costs related to fulfillment,
technology and content, marketing, and general administrative expenses. Fulfillment costs
involve the operation of vast warehouses, shipping, and order processing. For the latest and
most accurate financial information, it's advisable to refer to Amazon's official financial
reports or recent news sources.
 STUDENT DECLARATION

I hereby declare that the Tutorial Assignment for Entrepreneurship Development with the
title “OPTION A – Project Proposal on Existing Business” submitted by me for Semester I
under NEP(CCF 2022) for SEC - A under the University of Calcutta is my original work and
has not submitted earlier to any other university/institution for fulfilment of the requirement
for any course of study.

Date : ______________________
Place:Kolkata Signature of Student
Name : Uday Routh
C.U.Registration No.: 011-
1111-0264-23
Executive Chairman of Amazon , Jeff Bezos