Amazon.com Inc. is the largest global electronic commerce and cloud computing company in the United States. Its home domain amazon.com is the sixth largest website in the world in terms of web based hits and the number one shopping portal in the United States. The company brings in over $100 billion worth of revenue a year and has an operating income of $2.2 billion a year. What makes Amazon such a successful company is their transformational leader, Jeff Bezos who is always looking out for new frontiers to conquer, and new products to sell to his loyal customers. Jeff Bezos started from nothing and had his own share of problems but he was able to overcome his shortcomings due to his brilliance as a leader, because of this Amazon.com Inc. is …show more content…
Jeff Bezos stated in a conference that “Amazon.com was actually profitable in the spring of 1995 for about one hour.” One reason for this is the scale of products that Amazon.com sells. The products range from small items such a toothpaste and soap up to large products such as a tiki hut. The products are sold at a razor thin profit margin on top of the guaranteed free shipping when a customer reaches a certain dollar amount. Offering such a large product selection has its downfalls such as not being able to buy in bulk which forces Amazon.com to take a lean manufacturing approach in their business model. Amazon.com has a motto which is “get big fast”, what they mean by this is investing aggressively in product categories and themselves instead of focusing on the company’s business health and bottom line. The problem with this is the fact that Amazon only has a 2% profit margin where the retail industry average is over double that depending on the products that a retailer specializes in. Instead of specializing in one type of product which allows for a company to buy in greater bulk to reduce their costs, Amazon focuses on every industry which is the exact opposite of a successful retail business
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
Although Amazon has been active trying to find the perfect strategy to make profits, the numbers in its financial statements had not shown the most optimal results. We have discuss that even though its strategies have been right according to supply chain and logistics methodologies and theory, something had been missing to represent this successful strategies into financial results. It is seen that Amazon had spent too long time finding the right strategy which the last might be the one because in the financial statements profits started to come up. Amazon still have a long way to go to mature its strategy and represents it into profits for its shareholders.
Amazon is number eight on Interbrand’s 2016 ranking, which is up 33% from last year to 50 billion 338 million.1 This year they plan on reaching 72.8 billion.2 Amazon is an e-commerce company offering cloud based services as well. It is an extremely customer-centric company and the largest internet based retail company in the country.3 Amazon is about innovation and bringing new technology and new ideas to their customers. With all their successes, there has been a misstep or two that has kept the company grounded. This is shown for the most part with the up and down of the stock market but overall has steadily climbed over the past year.4 Consumer confidence is a great indicator of these ups and downs.
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Bezos turned his online book store into a multi-faceted powerhouse. Other than their retail store, Amazon has a cloud service, their own line of e-book readers, smart speakers, and their own multimedia streaming service with original movies and TV shows. Amazon has come a long way since their creation in 1995 and will continue to branch out to different markets including pharmaceuticals and even the grocery store market with
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 has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
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.
Amazon.com is a electronic commerce company with its headquarters in Seattle, Washington, United States. It is the largest internet company in the world. Amazon was founded in 1994 by Jeff Bezos , an American business magnet and investor. He is the chairman, CEO and president of the company. Amazon is a worldwide company with 132,600 employees working in it.
Amazon.com, Inc. alternately destined to be known as Amazon is an American electronic business and distributed computing organization with home office in Seattle, Washington. It is the biggest Internet-based retailer in the United States. Amazon.com began as an online book shop, later they began to offer CDs, video downloads, DVDs, Blue-beams, MP3 downloads/streaming, book recording downloads/streaming, programming, computer games, gadgets, attire, furniture, sustenance, and toys. The company also produces consumer electronics, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone and is the world's largest provider of cloud infrastructure services (IaaS). Amazon additionally offers certain low-final items like USB links under
Amazon started its business with selling books online. In the first month of its launch, Amazon had already sold books to people in all 50 states and in 45 different countries. (3) Amazon’s founder had an amazing idea and he made that successful because everyone can see that Amazon still exists today. In 1997, Amazon started its public offering (IPO) in Nasdaq and their value was modest 438 million dollars. (15 May 2017, Rani Molla and Jason Del Rey, recode, Amazon’s epic 20-year run as a public company, explained in five charts)4 Through this reader has information that Amazon was a multi-million dollars company.
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
Amazon.com, Inc Company started in 1994 and featured online in 1995. The company has done extremely well in the market achieving remarkable success. Initially, Amazon was known as Cadabra. Inc. however, the name of the company changes when the owners of the company knew that people confused the name for cadaver. Jeff Bezos is credited for founding the company. The company has its base in the United States of America as a multinational e-commerce company. Its headquarters are in Seattle, Washington. It has been rated as the largest online retailing company, in the entire world. It has close to three times the sales revenue that staples, Inc made as a runner up, in January 2010 (Shire, 2008).
Amazon is the world’s largest retailer online. Founded in 1994 it has started as an online bookstore but soon expends its catalog with software, video games, electronics, furniture, food, toys etc.
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.