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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
Bill Nye the science guy was an inspiration to kids all over the world. He let the children learn in a fun, and humorous ways. In his life he was an engineer. He played as a teacher in a Disney movie. He also appears in other things such as The Climate Code on The Weather Channel, VH1 reality show, and more. HE also has his own scientific work as a scientist. Bill Nye created a show that used humor to innovate ways to overcome boredom from the kids and illuminate the world by teaching the concepts of science.
From 2006 to present, Amazon’s Annual Revenue has grown increasingly higher and higher. Presently in 2015, it was estimated that Amazon hauled in around 107.6 billion dollars (“Amazon.com”). The Amazon Career Choice Program will prepay 95% of an employee’s tuition and fees that will not only benefit the company but as well as the employee (“Career Choice”). Some programs that the employees can go into include: aircraft mechanics, computer-aided design, machine tool technologies, medical lab technologies, nursing, and many others (“Career Choice”).
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).
Amazon 's disruption of the bookstore industry trickled down to other industries as Amazon grew with their product line and now services known as AWS. This could not be possible if Amazon did not invest and research more in the technology space. From selling books online and now providing virtual rack servers and software applications for businesses, technology is at the forefront for Amazon. The initiatives and investments come at a heavy price for Amazon as they have spent about $12 Billion in 2015 for research and development. The amount seems excessive but for a company with sales of $100 billion in a year and some of the technology and process which has changed the way on shopping online and utilizing technology, a small price to pay for the gain Amazon has earned. Competition like Microsoft, Google, IBM and other technical driven organizations know the technology has a greater return when speed and efficiencies are involved. The developmental budget for the artificial intelligence alone for the industry is in the billions because of the constant improvements technology is making for all humans. Amazon created "Lab 126" in 2004 as the development
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 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).
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 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
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
One thing need to be improved is its pricing strategies. The company should avoid reducing price on every new version as it could affect customer expectation and product value perception. Customer-oriented pricing strategies can be used in the future to establish Kindle standard price. This could be achieved by understand how customer use the product, the product benefit for customers, and estimate all relevant cost and compare how the product benefits offset these costs (Shiu, 2011b). This is an important point to consider in order to achieve sustainable position as the leading innovative e-book reader in the market.
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.
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.
Other site like Chegg and Overstock also have textbooks that are cheaper than many bookstores, but unlike Amazon they do not have the book selection that it does. Overstock averages about 60,000 textbooks in their selection and Chegg has only about 20,000 textbooks to browse from.(CITE) Amazon has over 50 opponents competing with them, and their only main competitor is Ebay. Amazon and Ebay are very similar and they both have their strengths and weaknesses, but Ebay's strength is textbooks as it has over 12 million textbooks while Amazon has only about three million books to browse from. College textbooks is a billion-dollar industry and Amazon gets to help lower that number just a little every
During the past few years, the publishing and reading world has been facing a veritable digital book onslaught. E-books have been outselling print books on Amazon since 2011 (Polanka, 7). While digital book sales skyrocketed, print book sales, especially those of mass marked paperbacks, diminished. Even the fact that e-books are not much cheaper than print books does not seem to interfere with the former’s popularity. It would seem that the age of print books is about to end, and quite soon.