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A brief history of amazon
A brief history of amazon
A brief history of amazon
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SUMMARY Amazon.com, Inc. (hereafter referred to as “Amazon”, “it”, “the business”, or “the company”), is an online retailer that has branched into content creation and web services. Its main competitors include retail giants Wal-mart and Target, as well as entertainment providers Netflix and Barnes and Nobel. Recently, it has found itself competing with technology giant Apple as ventures into cloud services. Amazon was incorporate in 1994 and was offered publically in 1999. It has grown rapidly into the world’s number one online retailer, with millions of products. To achieve this, Amazon has acquired a global network of distribution centers and used technology to provide consumers with access to the best products at the lowest rates. Amazon’s services have become integrated into the modern consumer’s demands for immediate (or near immediate) gratification and investors are highly optimistic about the company’s prospects. Amazon has recently been demonstrating growing revenues in a time where overall sales in the retail industry are growing much more slowly. However, this is not all that is important to an investor. While the company’s revenues are high, it reports losses as it continues to spend to expand rapidly. Investors should carefully analyze past financial statements to determine whether the growth rate in sales is sufficient to match the current expectations and market prices for the retail giant. Such an analysis will reveal that Amazon’s current method of operation plans for the company’s long term profitability, so the company may not be an ideal choice for the more short-term investor. Additionally, Amazon has increased its areas of operation by branching into content and web services and the investor should be aware... ... middle of paper ... ...e Amazon its positive image in the eyes of consumers. Recently, much has come to light that shows less than stellar working conditions for Amazon’s employees. In December 2013, Amazon workers in Germany walked off of their jobs and went on strike claiming “ We are people, not robots”. Claims across the world state that Amazon pays its workers in its distribution warehouses only a little more than the appropriate minimum wage for work that is more demanding than typical retail work. The BBC even found that working conditions at Amazon warehouses could be linked to higher rates of mental and physical defects. If Amazon does not provide better worker’s rights and benefits, it may lose its competitive advantage as employees turn to other employers. However, it is possible that this will just push Amazon to pursue technological improvements to replace human workers.
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
Since 1996, when Amazon.com was incorporated it has never offered dividends to its shareholders (Nasdaq, 2015). The company’s dividend policy is not to pay dividends so that it is reinvested by seeking out opportunities and developing new products (Reeves, 2012, p. 17). In addition, the company’s net income has been fluctuating since 2004. According to Market watch (2015), the company’s net income in 2010 was US$1.15 billion, it reduced to US$ 631 million in 2011, it reduced further to US$ 39 million in 2012 before increasing to US$ 274 million in 2013. In 2014 the company’s net income reduced to US$ 241 million. The fluctuations in net income arise from strategic investments that have long-term returns. Stewart, (2014), notes that the high prices of Amazon.com’s shares are due to investors’ positive outlook about the company’s profitability in future. In this regard, the long-term bets have paid off the company resulting to investor confidence. Amazon 's net income for the three months ending in June 2015 was $92 Mil. Its net income for the trailing twelve months (TTM) ending in June 2015 was $-188 Mil (Bezos, 2015). In comparison to three of its top competitors, Amazon has the lowest net income.
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
Treanor, T.. (2010). Amazon: Love Them? Hate Them? Let's Follow the Money. Publishing Research Quarterly, 26(2), 119-128. Retrieved February 24, 2012, from ABI/INFORM Trade & Industry. (Document ID: 2377177581).
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.
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).
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 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’s also tried to spearhead the industry by introducing the customer-pleasing traits in terms of the technology, order fulfillment and retailing strategies categori...
For our business profile project, we focused on Amazon. Amazon.com Inc. was founded by Jeff Bezos in 1994. Amazon was first started in Bezos ' garage and has turned into a billion dollar operation over the course of 22 years (Smith). Amazon is currently headquartered in Seattle, Washington and has branch locations all over the world. Amazon is most known for their kindle, fast shipping, and selling various products (Smith). With Amazon being such a large corporation professionalism, academics, character, and engagement are crucial parts of the success of the company.
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).
Bezos’ vision and mission statement for Amazon is “Our vision is to be earth 's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” For the most part, this vison has been achieved, Amazon is the “top revenue maker in online retail worldwide” and is geared towards giving consumers the ability to find what they want on their marketplace site. In 2014, Amazon’s mission statement was changed “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.” This was due to Amazon’s expansion of their range of consumers from only customers to customers,
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.