Amazon.comInc. is the leader in the online retail business that deals with electronicproducts and cloud hosting services. The company was founded by Jeff Bezos in1994 but the website, which is the core marketing and selling platform for thecompany, was launched in 1995.
Currently, the company’s headquarters are inSeattle, Washington, US. The company operates several websites that targetdifferent markets i.e. in UK, France, Japan, China, Italy and Germany.
Thecompany is also planning to launch other websites that will target Netherlands,Poland and Sweden. Apart from selling electronic products, Amazon.com alsooffers cloud hosting services to companies all over the world.
Amazon is unlike any other retail site, differsfrom its competitors in that customers have numerous options when shopping onthe Amazon website. When compared to other book sellers for example, Amazonoffers features that other book sellers do not. Oneof the Amazon’s project – the Amazon Prime program offers different perks, suchas allowing members to “rent” e-books for a short period. Amazoncustomers may also shop from a huge variety of items, and even download andwatch television programs or movies. In terms of the Amazon’s Kindle/KindleFire and Apple’s iPad, the difference is in the way that the company makesmoney. Amazon strives to make money more from sales after the sale of theKindle device than the actual selling of the reader itself. For example, peoplewho purchase the Kindle will continue to purchase e-books through Amazon. Thereis also a Kindle software which enables to use this product on the otherplatforms, such as PC’s tablet’s laptop’s and etc.
Throughout the first fouryears of business, the company did not make any profit and many shareholderswere overwhelmed by the nature of business the company was engaged in. Sooncritics were proved wrong because during the fourth fiscal year the companymade profit. Profit was not the only book marker but the fact that there seemedto be a major drift in selling of books from bookshops to eBooks the companywas on track to made even more exploits as the online market continued toincrease. As result of the tremendous growth, Jeff Bezos was announced «Personof the Year» by the Times Magazine.Originally Jeff Bezos wantedto give the company the magical sounding name “Cadabra. But “Amazon’sfirst lawyer, Todd Tarbert, convinced him that the name sounded too similar tothe company named “Cadaver,” especially over the phone.
He finallychose “Amazon” because he liked that the company would be named afterthe largest river in the world, which was described on one of the company’s earliestlogos.Amazon got started out ofBezos’ garage and the servers that the company used required so much power thatBezos and his wife couldn’t run a hair dryer or a vacuum in the house withoutblowing a fuse. In the first month of its launch, Amazon had already sold booksto people in all 50 states and in 45 different countriesThebeginning of the success story of the Amazon.com started in 1994 when JeffBezos left his position as vice-president of D.
E. Shaw one of the famous WallStreet firms, moved to Seattle, and began to work out a business plan. Hestarted to make up a list of 20 products which are more likely to be popular tobe sold on the Internet. By the elimination method he shrank the list tofive most plausible to give profit: CD’s, books, videos, and computer softwareand hardware. Bezos eventually decided that his venture would sell books overthe Web, due to the large worldwide market for literature, the low price thatcould be offered for books, and the tremendous selection of titles thatwere available inprint. He chose Seattle as the company headquarters because of its large technologicalwork force and its optimal location for large book distribution center inOregon. Then he worked to raise funds for the company while also working withsoftware developers to build the company’s vital marketing platform – the website. It was launched in 1995 and became most popular web site after only fourmonths of operations, making high marks on several Internet rankings.
It climbed up to the sixth place of the ranking of the best sites on PointCommunications’ “top ten” list. The site opened with a searchabledatabase of over one million titles. Customers could enter search information,prompting the system to surf the company’s database and find the desiredtitles.
The program then displayed information about the selection on acustomer’s computer screen, and gave the customer the option to order the bookswith a credit card and have the books shipped in a just a few days. Amazon.comcarried only about 2,000 titles in stock in its Seattle warehouse. Most ordersthrough Amazon.com were placed directly through wholesalers and publishers, sono warehouse was needed. Amazon.
com would simply receive the books from thedifferent sources, then ship them to the customer. At first, the company operatedout of Bezos’ garage, until it was clear that it was going to be a success,necessitating a move to a Seattle office, which served as the customer support, shipping, and receiving area. It wasinteresting that, because of the Internet, such a small venture could realizesuch a broad scope so quickly, within a month of launching, the web site wasalready processing orders from all 50 states and 45other countries. Atthe beginning Amazon faced a lot problems to set any norms as a relativelyyoung venture in the Internet trading. With that point on the Jeff’s target he startedto seek for new ways on making Amazon.com as convenient as possible to themaximum types of customers. For those people who knew what book they werelooking for and just wanted quick performance and low cost, Amazon.com offeredpowerful search qualities.
For the start, it was nearly over 1million-title database.. For other customers who were just looking forsomething to read in a general area of interest, Amazon.com offered topic areas to browse, as well as lists of bestsellers, andtitles that were recently featured in the media.
For the people who did notknow what to choose, Amazon offered a recommendation center where customer couldfind books based on mood, reading habits, or preferences. The recommendationcenter also offered titles based on records of books the customer had purchasedin the past, if they were return customers to the site. As not enough the sitealso began offering 15 to 35 percent discounts on majority of titles, makingthe prices extremely affordable.
Inthe first quarter of 1998 number of Amazon’s customer accounts was a slightlyabove 2 million, it was an increase by the half in just three months, andmind-bending increase of 564 percent over the previous year, it took Amazon.com27 months to serve its first million customers and only 6 to serve the secondmillion. This made Amazon.com the third largest bookseller in the UnitedStates. Thecompany started the expansion of its influence range by acquisition of threecompanies, two of which were acquired for the further expansion of Amazon.com inEurope. One of the largest online booksellers in the United Kingdom – The Bookpages,gave Amazon.
com access to the U.K. market, Telebook, the largest onlinebookseller in Germany, served as the entrance to its home market. Bothcompanies gave Amazon not only the access to the new profit sources in two ofmost Europe’s most important countries, but it also gave existing Amazon moreresources from all around the world.
The third new purchase – Internet MovieDatabase was vital for its further movement into online video sales. Thetremendous resources and information of the IMD served as a valuable asset inthe building of the future domination of the Amazon.com Anothersensation happened in 1998 when company announced that it will also expand tothe music industry.
Several months before officially opening its music site,Amazon.com asked its bookstore customers and members of the music profession tohelp design the new web site. At the of the second quarterof 1998 with very confident number of customer accounts which left the point ofthree million far behind and with sales figures for Amazon.com continued torise, and more products and titles were added, the future looked bright forthis young venture in the Internet trading.
With music as a part of the companymix on one hand, and video sales on the other, Jeff seemed to have accomplishedhis goal of invasion of the online sales market. As Bezos told in his interviewto the Fortunemagazine in December1996: “By the beginning of 21st century, there could be two orthree big online bookstores. We need to be one of them.”In 2016 Amazon founded a new subsidiary which is called Prime Air. PrimeAir is a conceptual drone-based delivery system which is now in the stage ofthe developement by Amazon. This is what is called future of the delivery systems – The Prime Air, whichwas taken as a joke a couple of years ago, is now developing and growing withfull seriousness.
As technologycontinues to grow and play a larger role in consumers’ lives, industries havetransformed and adapted as well. Companies have moved away from brick andmortar to predominantly online services as a result of ubiquitous Internetaccess. Online companies reduce overhead costs, including rent andwages, associated with operating a physical store.While onlineretailers are more convenient, purchases of goods and services are subject toadditional shipping and handling charges incurred by the consumer. Even thoughtechnology has transformed a number of industries over the past 10 years,shipping and postage has remained relatively unchanged. Traditional postalservice providers such as UPS, FedEx have remained the primary source ofshipping and handling for major retailers.Recently, Amazonhas challenged the status quo with Amazon Prime Air. Amazon Prime Air is adrone delivery system which anticipates package deliveries in 30 minutes orless.
While the financial and economic impacts of drones are robust, FAAregulations in conjunction with privacy and safety concerns have delayed thelaunch of commercial drone servicesTraditionally, drones hadbeen only used in military technical sophistication, and high capabilities in reconnaissanceoperation. However due to economies of scale, consumers can now purchasedrones for just $60.With widespreadaccess, consumer companies such as Amazon have explored the use of unmanned aerialvehicles for commercial purposes. Amazon Prime Air has promised 30 minutedelivery service for packages up to 5lbs. Google, in altruistic contrast toAmazon, has developed aerial drones for environmental conservation and deliveryof medicine to remote locations.
Powered by batteries, drones are moreenvironmentally friendly than delivery trucks.According to allthe achievements, organizational structure, and generally the behavior of theAmazon Inc as a company it is obvious that all the tasks, such as developmentof retail business, implementation of new ideas, and etc. Amazon Inc is surelythe leader in the industry. From the beginning Amazon as a company has alwaysbeen the game changer in the retail business and it is obvious that all of thiscouldn’t be without the leader, of the company Jeff Bezos, who has proven that inorder to move the industry to the future you need to experiment and as hisquote says at the beginning of this essay « It’s not an experiment if you know it’s going towork ».