Amazon Research Paper

Introduction

For this writing, I will research Amazon.com Inc., also known as Amazon. Amazon is headquartered in Seattle, Washington and is an electronic commerce and cloud computing company. Amazon is a company of builders and pioneers who are energized by inventing on behalf of their customers.

Amazon offers products and services through its websites and offers merchandise and content that they purchase for resale from vendors and third party sellers. Amazon operates in three segments North America, Internal and Amazon Web Services. North American segment focuses on retail sales of consumer products from sells through it North America focused websites which include www.amazon.com, www.amazon.ca and www.amazon.com.mx (Statistica, 2016).

ARK Investment Management reported that reduced shipping cost would directly benefit the customer and with the launch of Amazon Prime Air, Amazon would be able to charge $1 to have drone technology deliver a package in 30 minutes or less to the customer (Kim, 2016).

Amazon will start out delivering packages that weigh less than 5 pounds because 86% of all order shopped weigh less than that which would result in tremendous benefits (Kim, 2016).

Theory

The use of Amazon Prime Air drone delivery service according to the article What is Disruptive Innovation? by Christensen, Raynor and McDonald (2015) in this case would create new market where none currently exists (Christensen, Raynor, McDonald 2015).

Amazon Prime Air has created value innovation by developing a systematic framework for developing new products that go beyond existing market boundaries. They have implemented a two-step process of, first listing the main factors on which the industry competes and, second, exploring options for radically increasing, reducing, and adding new factors, to develop innovative products with the potential to create uncontested markets (Barwise,

Amazon employs 230,800 full and part-time employees and is the leading e-commerce retailer in the United States with a $89 billion in net revenues (Statistica, 2016).

The organization was selected for research purposes because of their innovation efforts in the use of drone technology. Amazon’s Jeff Bezos unveiled Amazon Prime Air a delivery service that will utilize autonomous drone technology to deliver packages to customers within 30 minutes from the time their order is placed (Stern, 2013). With the use of drone technology has opened and created a new market where none currently exists (Christensen, 2015). Innovation is a new idea, device or process and can be view as the application for a better solution to meet new requirements, existing markets or needs that have not been articulated (Merriam Webster, 2016). Disruptive innovation is a process whereby a simple application of a product or service that starts at the bottom of a market, moves up in the market and displaces and established competitor (Christensen,