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Amazon.com is a publicly traded worldwide online retail company founded by Jeff Bezos on July 5, 1995 in Seattle, Washington. The company originally began as an online bookstore as Bezos felt there was a high demand for literature, and books had a low price point and a huge selection of titles available in print. Technological innovation drives the growth of Amazon.com to offer customers more types of products, more conveniently and at lower prices. Since 1995, Amazon has significantly expanded its product selection, international retail websites, and worldwide network of fulfillment and customer service centers. Today, Amazon retail websites offer everything from toys and video games to MP3 downloads and collectible items (amazon.com, 2014). Amazons business model is fairly simple; to sell various products and goods online at an affordable cost to consumers. Amazon has managed to not only achieve this business model but they have also managed to consistently expand and become the largest online retailer to date. To keep up with global demand, Amazon had to expand its products and services offered while continuing to forecast consumer’s needs. “In 2000, Amazon.com began to offer its best-of-breed e-commerce platform to other retailers and to individual sellers. Today, hundreds of thousands of world-class retail brands and individual sellers increase their sales and reach new customers by leveraging the power of the Amazon.com e-commerce platform. Partners work with Amazon Services to power their e-commerce offerings from end-to-end, including technology services, merchandising, customer service, and order fulfillment. Other branded merchants leverage Amazon.com as an incremental sales channel for their new merchandise. Over 2 million third-party sellers participate in Amazon where they offer new, used, and…
In planning their business, Amazon had to take into account all internal and external factors to avoid catastrophic troubles while beginning their company. The same concept holds true, even today. Internal and external factors affect the planning, organizing, leading, and controlling (four functions of management) functions of management involved in the successful and continual growth of Amazon’s company. Their company began as a planned rival to Google and Microsoft, for lead in the online retail industry. With their original focus, Amazon used four different key values to help their business off-the-ground, and stay focused on their personalized progress. Their ability to zone-in on customers, dynamic pricing, personalized service, and brand variety was their plan for success (Amazon, 2011). It became a primary goal for Amazon to make their customers’ online shopping experience easier and more enjoyable while supplying dynamic pricing options and the convenience of a ‘one-stop’ retail ordering system. The business model of Amazon included selling books, compact discs, movies, electronics, and games. Currently, Amazon has the largest online retail selection because it extends its inventory out to offer home goods,…
Founded in 1995 by Jeff Bezos, Amazon.com has become one of the largest known online stores in the world. In 1995, Amazon.com sold its first book online, which was shipped from Bezos’s garage in Bellevue, Washington (Amazon.com Mission Statement, 2012). Many may not know that Amazon.com had a slow start because their online layout was not appealing. Within a few years Bezos attracted a few investors who took interest in his venture and invested approximately $140,000. Bezos decided to use the money to create a more appealing website to attract more customers. The sales for the next three years surpassed Bezos’s expectations. After analyzing the sales data, he found that people were not only purchasing domestically, but also from around the world. Amazon.com has grown from a small company to a worldwide business in just a few short years. This rapid growth requires a company to reevaluate how it does business if it plans to expand or maintain its marketplace for the future.…
Amazon.com, from a strategic approach, is dominating the world-wide-web. They have become the world leader in online sales of books, music, videos, movies and other products and services. Amazon knew that the Internet could be used as a distribution channel, thus reducing their supply chain relations. By making these strategic advances, Amazon was able to achieve and sustain their competitive advantage.…
Amazon is rapidly evolving and it is intensely competitive, and competitors in different industries are attempting to break into this business. These competitors include retail, e-commerce services , digital content and digital media devices, and web services. Many of Amazon’s current and potential competitors have far greater resources, longer histories, more customers, and greater brand recognition. This is a challenge to Amazon’s operation where competitors might have more viable abilities to aggressively…
In 1994, Jeff Bezos was a 30-year-old hedge fund analyst with a degree in computer science and electrical engineering from Princeton University. It was at this time Bezos decided to put his business plan in play. Jeff pulled up a file that had the business model he intended to use, which had been write in early that year in the passenger seat of a 1988 Chevy Blazer (A Retail Revolution Turns 10, 2005). Amazon.com opened its virtual doors on the World Wide Web in July 1995 and offers Earth’s Biggest Selection. The company seeks to be Earth’s most customer-centric company. Amazon.com is now a digital strip mall branching beyond books into music, DVDs, electronics and toys (Penenberg, 2000). Many people wonder how Amazon became on of the few dot-com companies to survive the dot-com bubble burst that took effect during 1997-2000. One of the best ways to evaluate Amazon’s performance is to complete a thorough review of its financial statement, pro forma financial statements, ratio analysis, return on equity, its calculated economic value added projects, and its financial policies.…
Amazon.com is an internet giant in terms of e-commerce. It was incorporated by Jeff Bezos in 1994 under the name Cadabra. In 1995 he changed the name to Amazon because he decided the former sounded too similar to “cadaver” and because he wanted a name beginning with “A” so it would potentially be at the top of any search results returned in alphabetical order. Amazon.com has headquarters in Seattle, Washington but has retail websites across the globe. It is the world’s largest internet company. Jeff Bezos has a solid reputation that is appreciated by colleagues, employees, and customers alike. Forbes magazine touts his status as “our greatest living CEO” while his employees perhaps know him best for leaving an empty seat open at conference meeting tables. The empty chair is symbolic of the customer at Amazon.com and Bezos often refers to it as “the most important person in the room” (Hartung 2013). While many leaders in retail recognize the importance of customer satisfaction, by making the customer an active presence at meetings Jeff Bezos sends a powerful message to his constituents.…
Foremost among the existing objectives of Amazon.com is to achieve market leadership as a priority over the attainment of short-term profitability goals (David, 2003). Jeff Bezos founded Amazon.com in 1994. From the beginning, Amazon.com was a Web-based company that focused on B2C (business to consumer) operations. The company's Web site became functional in July 1995. By September 1995, sales at Amazon.com were averaging $20,000 per week. Operationally,…
Jeffrey Bezos started Amazon.com in 1994, after recognizing that Internet usage was growing at a rate of 2,300 percent a year. Operating from a 400-square foot office in Seattle, Jeffrey launched Amazon.com on the Internet in July 1995. Amazon.com mission is to use the Internet to transform book buying into the fastest, easiest, and most enjoyable shopping experience possible. By the end of 1996, his firm was one of the most successful Web retailers, with revenues reaching $15.6 million. Almost overnight Amzon.com quickly became the world’s largest e-tail bookstore in the world. Amazon has continued to expand its customer base, and sales revenues have increased every year. The firm’s revenues increased from $15.7 million in 1996 to $2.76 billion in 2000 (Table 1). Today, Amazon.com is the place to find and discover anything you want to buy online. Amazon offers the Earth’s Biggest Selection of products to 29 million people in more than 160 countries across the world making them the leading online shopping site accessed via the World Wide Web.…
Amazon.com has remained on top of the online retailing business despite the entrance of giants such as Barnes and Nobles and Borders. Their success is attributed to two factors; timing and continuing to…
The launch of Amazon.com in July of 1995 was the creation of a new and bold way of doing business on the Internet. Amazon.com forced the traditional physical world brick and mortar retailer in the book industry to change the way they target the industry 's consumers and then epitomized Business-2-Consumer e-retailing. Although, Amazon.com started as an online bookstore, according to eRetailNews , they have since spread its wings into other industries such as music, DVD, toys, videos etc...…
Amazon.com was one of the first major companies to sell goods over the Internet and has become a worldwide established name. Amazon.com is an American e-commerce company that is based in Washington. It was founded by Jeff Bezos in 1994 and began as an online bookstore but due to its success, Amazon has diversified into other product lines and services such as groceries, electronics and Merchant Program with stock price which fluctuated from $105 in 1999 to $5 in 2001(Lauden and Traver, 2000), but responding positively to economic stimuli, Amazon.com stock presently stands at $384.8.(www.Nasdaq.com, 26/02/15) Amazon.com has developed separate websites for Canada, UK,Germany, France, China and Japan with a vision to become. Amazon’s U.S. sales came to $44 billion last year, placing it in the top 10 US retailers. See appendix 1…
Amazon has flourished because it had a viable and innovative business model built around a market-changing customer value proposition and a radical profit formula, which upended the staid book industry (Johnson, 2010). The adaptive nature and potential to attract customers has kept Amazon on the top. Today amazon utilized an innovational, adaptive diversified business model by catering to a broader market not limited to books.…
Executive summary In this report a research has been done on Amazon and why it might be gone. With the research was tried to find out the following: how Amazon could use positioning to create a strong brand identity in the near future. To research was tackled by using two research methods; first one being the use of secondary research and second of all an observation list. Several objectives where tackled at the same time starting off with the first two being; describe the brands current pricing strategy and devise a way that shows the current range of brands. Amazon can be classified as a high-value brand as they offer a broad range of products, starting…
E- commerce in the past decade has emerged as a growing platform for selling and buying of products and services on the Internet. During times of financial crunch throughout the world recently there was an immense effect on the growth and success of the electronic alternatives like Amazon (Solomon et al, 4th ed, Consumer Behavior: A European Perspective pp.73-74). Therefore, in this report I consider the leader in e-retailing Amazon.com, Inc. (Amazon.com). So if for example Amazon’s 66 million customers lived in the same country, then it would have been the 19th largest country in the world in terms of population, with more citizens than every European country except Germany (http://www.wikinvest.com/stock/Amazon.com_(AMZN)). The company started its expansion in the 90s to offer the "Earth's Biggest Selection" of books, apparel, electronics products and home improvement products through its online website, www.amazon.com to consumers, sellers as well as developers (http://www.referenceforbusiness.com/history2/35/Amazon-com-Inc.html).…