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Competitive strategy of amazon
Brief history of amazon company
Competitive strategy of amazon
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Case Analysis: Amazon Kindle Fire Founded by Jeff Bezos in 1994, Amazon.com accomplished the goal of being the largest online bookstore by 1999. By 2011, they reported $50 Billion in revenues and controlled approximately 10% of the e-commerce market in North America. Bezos invested in different emerging opportunities and offered cloud based information technology services. In 2007, the first-generation Kindle was released. Bezos launched the Kindle Fire in 2012 to undercut the current tablet market, with the differentiator being Amazon Silk web browser. (Sharma, 2016) With all the eReader on the current market; iPad, B&N’s Nook, Bezos had to come up with an eReader that would be successful yet still affordable. The Kindle already had the capability for Amazon customers to find, buy and sync content swiftly and effortlessly any place the customer was located. Bezos wanted …show more content…
There are four main types of eReaders, Amazon Kindle, Sony eReader, Barnes & Noble Nook and the Apple iPad/iPhone. These and many other eReaders are used and owned by 2.1 million adults. The Kindle user demographics show that it is used by people 35 and older with less than a quarter of users under the age of 35. The split is that the 18-34 age group prefers the iPad over the Kindle. (Jennifer, 2010) Economic Trends: Economic stability has increased the probability of achievement for Amazon.com in the market. The Kindle Fire is priced at a range that between 40 and 70% of consumers are either interested in knowing more about it, have already purchased or intend to purchase at a price of $98 and below. (Jennifer, 2010) Amazon also has programs “that pre-pays 95% of tuition for employees ‘to take courses in-demand fields, such as airplane mechanic or nursing, regardless of whether the skills are relevant to a career at amazon’” (Dudovskiy, 2016) Global
History”, n.d.). But the unbelievable pace at which Amazon added new products and new customers proved to be a formidable barrier for any competitors. Within the first 10 years Amazon accomplished an unbelievable feat; it had 49 million customers and 6.9 billion dollars in revenue, and it had done so by selling some products at a loss to build market share (Rivlin, 2005). At times it was difficult leveraging so much capital to grow market share, but Jeff Bezos’ focus on the customer and long term growth of the company proved to be the real reason Amazon didn’t fall prey to the .com bust like so many other internet
Amazon was founded in 1995 by Jeff Bezos and became one of the first major companies to sell goods over the internet
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which could be conducted more efficiently over the internet than by traditional means he decided on books” (Academy of Achievement, 2010). He thought books were perfect because attempting to send huge catalogs for all the available books would be expensive and cumbersome, but an online resource database that was easy to navigate would provide customers with easy access and a single point from which to shop. “In 30 days, with no press, Amazon had sold books in all 50 states and 45 foreign countries, obviously by the success of Amazon he was right (Academy of Achievement, 2010). In a case study written by Javad Kargar called “Amazon.com in 2003” he stated that “Amazon's online store was a big hit, with about $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
Our research analysis is on Amazon and the amazing mind of Jeff Bezos who started Amazon in 1994 as an online merchant of books but later found how the internet revolution was an opportunity to sell products, live streaming and web services that would revolutionize the world of the internet. The company is based in Seattle Washington with subsidiaries around the world because of the technical presence required in each region. High level engineers and technical talent from around the world are required to support the Amazon vision and it will be discussed in our final submission. Amazon has several subsidiaries purchased and acquired through the years to help their business Portfolio such as:
Ten years ago, the tablet was just a nice thought and mp3 players, fold up cell phones, and laptops were the big new thing. Apple, Amazon's current top competitor for the Kindle Fire and the new Fire Phone, was making computers and IPods while Windows, another big competitor of Amazon was also making computers and laptops as well. Amazon then, was just a good replacement for EBay. In 2007, Amazon released the original first generation kindle e-reader. It has evolved to many different species of kindles including the high competing tablet, the Kindle Fire HDX.
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
Amazon.com entered the UK market as Amazon.co.uk on October 1998 by acquiring the site previously operated by Bookpages Ltd. The company began as US online book store in 1994. The retailer soon became very successful in the new market as its primary offer included over 1.4 million book titles, comprehensible search tools, secure transaction, direct shipping and also high discounts on thousands of popular books (Amazon, 1998). During 17 years of its presence on the market, Amazon offers various products and services including books, DVD, jewellery, electronics, furniture, , clothes, cosmetics, digital downloads, website development etc. (Datamonitor, 2010). Amazon significantly extended its product offer and currently is one of the leading online retailers in the world with several international websites and customers in over 200 countries.
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
"There are two kinds of companies, those that work to try to charge more and those that work to charge less. We will be the second." (Jeff Bezos) The creator of Amazon stated this quote when he talked about pricing on Amazon and how he wanted to make something that was affordable for everyone and allow people to earn money through the website. In 1994, Jeff Bezos founded Amazon just in his garage when he learned that the Internet was becoming very popular. Bezos decided to drive to Seattle to make his project known, after coming up with a plan in garage and held meetings at local Barnes and Noble, Amazon started to become famous.
Amazon began in 1995, founded by Jeff Bezos in 1994 in Seattle, Washington. Starting out in book sales over the internet, they sold their first book, “Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought, by Douglas Hofstadter”, in July of 1995. Since then, Amazon has expanded their sales beyond books to other various products, growing into one of the world’s top e-commerce businesses.
Amazon is one of the largest brands in the world, reporting $23.18 billion in sales last quarter. They operate with a customer-first mentality. This is clear in their mission statement, which is as follows: “We seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators (Amazon).” Amazon’s CEO, Jeff Bezos seeks to bring the highest quality products and most efficient services to their customers. According to critics of Amazon, Bezos’ goals have lent themselves to a
Jeffrey Bezos, the founder and current CEO of Amazon.com, initially started the company as an online bookstore in 1994. Within several months, Amazon spread its operation to all 50 states and abroad. Presently, customers from over 45 countries buy at Amazon. Over a short period of time, the company expanded sales to electronics, video games, software, CDs, DVDs, MP3 downloads, food, furniture, apparel, jewelry, and toys. Today, the company even produces its own products such as the Kindle series. Also, Amazon.com is one of the major providers of cloud computing services. Currently, the company is the largest global online retailer responsible for 20% of online retail market share.
In addition, Amazon has also given the customer the opportunity to sell goods. The customers have a huge amount of power when researching and choosing products of the thousands of products at the tips of their fingers. Amazon has just about every department of a store you can imagine, from gardening and lawn accessories, to kitchen machinery, to shoes, and to the strongest departments in my opinion, which is the reading and electronics. The book was the very first product and vision behind Amazon as Bezos “narrowed the list to what he felt were the five most promising [products to be sold via Internet]: compact discs, computer hardware, computer software, videos, and books…”: then deciding to create the worldwide selection and platform to sell literature in print. Little did Bezos realize at the time, that his print literature idea would develop into the foundation of the electronic department. This transformed into varying products and services to be offered to the consumers: from actual devices to purchase, to the Amazon exclusive “Kindle” E-reader and accessories, developing growth into the “Kindle Fire” TV, and the exclusive purchase of “Audible”, which is now an Amazon company audio book
...y discardable, but has an advantage of changing font size and page brightness. With this exception, print books are going to survive. To quote British actor and writer Stephen Fry, "Kindles are no more likely to replace books than escalators are going to replace stairs“ (9). Works cited: Fry, Stephen. The Fry Chronicles: An Autobiography. New York: Overlook Press, 2012. Print. Polanka, Sue, ed. No Shelf Required 2: Use and Management of Electronic Books. Chicago: American Library Association, 2012 Pratchett, Terry and Stephen Baxter. The Long War. London: Haper Voyager, 2013. Print.
With technology progressing from drones fulfilling shipments to electronic books becoming cheaper, major companies such as Apple and Amazon have had a big impact on not only the tech industry but the publishing industry as well. Companies are outputting resources like IBook’s and the Kindle bookstore to take full advantage of the transition to digital publishing. As a result of this we have greener, more budget friendly books, and outdated traditional copies of text. With the introduction to these resources it is making the lives of students and the mass market more convenient. Students are now able to purchase books on one device that won’t weigh their bags down on a daily basis. Companies have created bookstores that can be accessed from devices that we use every day, resulting in paperless copies of books that are substantially cheaper than the traditional hard copy. E-books are replacing physical books and textbooks rapidly, and as a result they are becoming more widely and readily available for students.