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Value creation of amazon
Conclusion about amazon.com
Conclusion about amazon.com
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Amazon.com
Taking the e-commerce market by storm, Amazon.com was founded in 1994 (Amazon.com). Bringing the company to life was Princeton engineering graduate Jeff Bezos. He first thought of the idea to create Amazon.com when he was simply searcing the internet. He first worked as an investment banker D.E. Shaw & Co. where he was looking for investment opportunities for the company. surprisingly, he found that the internet was growing over 2,000 percent per month (“Jeff Bezos the King of E-Commerce”). He saw this as a massive opportunity and decided to start Amazon.com to first sell books. Amazingly, Amazon.com now has over 232 million products for sale for United States residents including electronics, clothing, and their own movie streaming
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This mission statement reflects Amazon’s beliefs that they are interested in growth and helping people in their daily lives. In the future, Amazon wants to continue to offer their services with even more products and shipping locations. In addition, they are starting to expand on their own endeavours such as Amazon Prime video and their Kindle line. The mission statement matches the public’s view of the company in many ways. Most of the public views Amazon.com as one of if not the biggest online retailer. Their goal is to have anything a person could want on their website. This is true for the most part as I, personally, use Amazon more than any other website for online shopping. The image that Amazon presents is that they are a growing, and competitive company. They are constantly releasing new products and services that show the public that they are interested in growing. Amazon is named after the Amazon River. The Amazon River is the largest river in South America and is one of the largest in the world. It discharges the highest volume of water out of any river in the world (Britannica). Amazon’s image reflects this because as the Amazon River moves many gallons of water, Amazon.com sells an immense amount of products every year. In Amazon 's logo the arrow begins under the “a” and ends under the “z”. This indirectly implies that the company sells anything from a to z online
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
Looking at Bezos’s business model from an entrepreneurial standpoint is very interesting. He decided to take a very unique approach to business and in doing so he took some big risks to get where he is today. For a company like Amazon that is constantly pushing the boundaries and moving into new territory one could do a SWAT analysis for nearly every year they have been in business and it would look drastically different. For now I want to retrospectively focus on the initial plan that Bezos laid out and strengths, weaknesses, opportunities, and threats that came with it.
Amazon is best 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. Professionalism: Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about $0.6 billion, which held steady growth from 1998-2006 (“Amazon.com”).
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 $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
In the article “Inside Amazon: Wrestling Ideas in a Bruising Workplace” by Jodi Kantor and David Streitfeld, both authors noted Amazon’s business and work strategy as harsh and strict but rewarding and life-changing at the same time. Apparently, Amazon’s business model focuses on harsh and strict regulations to keep employees more motivated, productive, and innovative. In comparison to other companies who values benefits and positive reinforcement for their workers, Amazon values constant productivity for improvement and growth and compensation as a competitive aspect in workplace. Many people may see this business strategy and the company as harsh and a horrifying experience; however, I believe and agree that this strategy
Since the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i...
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 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,
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
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 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.
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.
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.