Value Creation of Amazon
Value Creation of Amazon
1 Introduction
With the development of technology and economic globalization, the lives of people have been enriched and online shopping is becoming the first choice of the majority. Amazon Company is an online retailer which has the most varieties of goods in the world. This report would introduce the Amazon’s background first, following with the discussion and analysis of Amazon’s strengths and weaknesses as well as its opportunities and threats. At last, this paper would propose and defend one of the most appropriate strategic directions of Amazon Company in different aspects to take over in the next three to five years.
2 Introduction and analysis of Amazon
2.1 Amazon’s background
Amazon is a Fortune 500 company which was established by Jeff Bezos in 1994 and headquartered in Seattle, Washington, USA. At present, it is the world’s second largest E-business company with the wildest range of consumer products. There are three subsidiary companies under the name of Amazon, which including Alexa Internet, a9.com and Internet Movie Database (Brandt, 2011). In the early stage, Amazon was a basic online bookstore named Cadabra (Byers, 2006). However, with a vision of Jeff Bezos saw the potential and characteristics of internet, online bookstore can provide more books than traditional stores for readers to choose, as well as the other products. After realizing this situation, Jeff Bezos restructured the company by increasing the types of merchandise and renamed to Amazon in 1995.
2.2 Amazon’s opportunities and threats
Amazon’s network marketing model is based on the development of internet technology. Therefore, as technology is advancing, Amazon continues to make progress undoubtedly. In addition, since the pace of life is increasing, all other considerations are subordinate to saving time and effort, hence online shopping has become the most popular shopping method for an increasing number of consumers. Moreover, the key to the
1 Introduction
With the development of technology and economic globalization, the lives of people have been enriched and online shopping is becoming the first choice of the majority. Amazon Company is an online retailer which has the most varieties of goods in the world. This report would introduce the Amazon’s background first, following with the discussion and analysis of Amazon’s strengths and weaknesses as well as its opportunities and threats. At last, this paper would propose and defend one of the most appropriate strategic directions of Amazon Company in different aspects to take over in the next three to five years.
2 Introduction and analysis of Amazon
2.1 Amazon’s background
Amazon is a Fortune 500 company which was established by Jeff Bezos in 1994 and headquartered in Seattle, Washington, USA. At present, it is the world’s second largest E-business company with the wildest range of consumer products. There are three subsidiary companies under the name of Amazon, which including Alexa Internet, a9.com and Internet Movie Database (Brandt, 2011). In the early stage, Amazon was a basic online bookstore named Cadabra (Byers, 2006). However, with a vision of Jeff Bezos saw the potential and characteristics of internet, online bookstore can provide more books than traditional stores for readers to choose, as well as the other products. After realizing this situation, Jeff Bezos restructured the company by increasing the types of merchandise and renamed to Amazon in 1995.
2.2 Amazon’s opportunities and threats
Amazon’s network marketing model is based on the development of internet technology. Therefore, as technology is advancing, Amazon continues to make progress undoubtedly. In addition, since the pace of life is increasing, all other considerations are subordinate to saving time and effort, hence online shopping has become the most popular shopping method for an increasing number of consumers. Moreover, the key to the