Amazon

Amazon.com
Inc. is the leader in the online retail business that deals with electronic
products and cloud hosting services. The company was founded by Jeff Bezos in
1994 but the website, which is the core marketing and selling platform for the
company, was launched in 1995. Currently, the company’s headquarters are in
Seattle, Washington, US. The company operates several websites that target
different markets i.e. in UK, France, Japan, China, Italy and Germany. The
company is also planning to launch other websites that will target Netherlands,
Poland and Sweden. Apart from selling electronic products, Amazon.com also
offers cloud hosting services to companies all over the world. Amazon is unlike any other retail site, differs
from its competitors in that customers have numerous options when shopping on
the Amazon website. When compared to other book sellers for example, Amazon
offers features that other book sellers do not.

One
of the Amazon’s project – the Amazon Prime program offers different perks, such
as allowing members to “rent” e-books for a short period. Amazon
customers may also shop from a huge variety of items, and even download and
watch television programs or movies. In terms of the Amazon’s Kindle/Kindle
Fire and Apple’s iPad, the difference is in the way that the company makes
money. Amazon strives to make money more from sales after the sale of the
Kindle device than the actual selling of the reader itself. For example, people
who purchase the Kindle will continue to purchase e-books through Amazon. There
is also a Kindle software which enables to use this product on the other
platforms, such as PC’s tablet’s laptop’s and etc.

Throughout the first four
years of business, the company did not make any profit and many shareholders
were overwhelmed by the nature of business the company was engaged in. Soon
critics were proved wrong because during the fourth fiscal year the company
made profit. Profit was not the only book marker but the fact that there seemed
to be a major drift in selling of books from bookshops to eBooks the company
was on track to made even more exploits as the online market continued to
increase. As result of the tremendous growth, Jeff Bezos was announced «Person
of the Year» by the Times Magazine.Originally Jeff Bezos wanted
to give the company the magical sounding name “Cadabra. But “Amazon’s
first lawyer, Todd Tarbert, convinced him that the name sounded too similar to
the company named “Cadaver,” especially over the phone. He finally
chose “Amazon” because he liked that the company would be named after
the largest river in the world, which was described on one of the company’s earliest
logos.

Amazon got started out of
Bezos’ garage and the servers that the company used required so much power that
Bezos and his wife couldn’t run a hair dryer or a vacuum in the house without
blowing a fuse. In the first month of its launch, Amazon had already sold books
to people in all 50 states and in 45 different countriesThe
beginning of the success story of the Amazon.com started in 1994 when Jeff
Bezos left his position as vice-president of D.E. Shaw one of the famous Wall
Street firms, moved to Seattle, and began to work out a business plan. He
started to make up a list of 20 products which are more likely to be popular to
be sold on the Internet. By the elimination method he shrank the list to
five most plausible to give profit: CD’s, books, videos, and computer software
and hardware. Bezos eventually decided that his venture would sell books over
the Web, due to the large worldwide market for literature, the low price that
could be offered for books, and the tremendous selection of titles that
were available in
print. He chose Seattle as the company headquarters because of its large technological
work force and its optimal location for large book distribution center in
Oregon. Then he worked to raise funds for the company while also working with
software developers to build the company’s vital marketing platform – the web
site. It was launched in 1995 and became most popular web site after only four
months of operations, making high marks on several Internet rankings.
It climbed up to the sixth place of the ranking of the best sites on Point
Communications’ “top ten” list. The site opened with a searchable
database of over one million titles. Customers could enter search information,
prompting the system to surf the company’s database and find the desired
titles. The program then displayed information about the selection on a
customer’s computer screen, and gave the customer the option to order the books
with a credit card and have the books shipped in a just a few days. 

Amazon.com
carried only about 2,000 titles in stock in its Seattle warehouse. Most orders
through Amazon.com were placed directly through wholesalers and publishers, so
no warehouse was needed. Amazon.com would simply receive the books from the
different sources, then ship them to the customer. At first, the company operated
out 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 was
interesting that, because of the Internet, such a small venture could realize
such a broad scope so quickly, within a month of launching, the web site was
already processing orders from all 50 states and 45
other countries.

 

At
the beginning Amazon faced a lot problems to set any norms as a relatively
young venture in the Internet trading. With that point on the Jeff’s target he started
to seek for new ways on making Amazon.com as convenient as possible to the
maximum types of customers. For those people who knew what book they were
looking for and just wanted quick performance and low cost, Amazon.com offered
powerful search qualities. For the start, it was nearly over 1
million-title database.. For other customers who were just looking for
something to read in a general area of interest, Amazon.com offered topic areas to browse, as well as lists of bestsellers, and
titles that were recently featured in the media. For the people who did not
know what to choose, Amazon offered a recommendation center where customer could
find books based on mood, reading habits, or preferences. The recommendation
center also offered titles based on records of books the customer had purchased
in the past, if they were return customers to the site. As not enough the site
also began offering 15 to 35 percent discounts on majority of titles, making
the prices extremely affordable.In
the first quarter of 1998 number of Amazon’s customer accounts was a slightly
above 2 million, it was an increase by the half in just three months, and
mind-bending increase of 564 percent over the previous year, it took Amazon.com
27 months to serve its first million customers and only 6 to serve the second
million. This made Amazon.com the third largest bookseller in the United
States.

 

The
company started the expansion of its influence range by acquisition of three
companies, two of which were acquired for the further expansion of Amazon.com in
Europe. One of the largest online booksellers in the United Kingdom – The Bookpages,
gave Amazon.com access to the U.K. market, Telebook, the largest online
bookseller in Germany, served as the entrance to its home market. Both
companies gave Amazon not only the access to the new profit sources in two of
most Europe’s most important countries, but it also gave existing Amazon more
resources from all around the world. The third new purchase – Internet Movie
Database was vital for its further movement into online video sales. The
tremendous resources and information of the IMD served as a valuable asset in
the building of the future domination of the Amazon.com

 

Another
sensation happened in 1998 when company announced that it will also expand to
the music industry. Several months before officially opening its music site,
Amazon.com asked its bookstore customers and members of the music profession to
help design the new web site.

 

At the of the second quarter
of 1998 with very confident number of customer accounts which left the point of
three million far behind and with sales figures for Amazon.com continued to
rise, and more products and titles were added, the future looked bright for
this young venture in the Internet trading. With music as a part of the company
mix on one hand, and video sales on the other, Jeff seemed to have accomplished
his goal of invasion of the online sales market. As Bezos told in his interview
to the Fortunemagazine in December
1996: “By the beginning of 21st century, there could be two or
three big online bookstores. We need to be one of them.”In 2016 Amazon founded a new subsidiary which is called Prime Air. Prime
Air is a conceptual drone-based delivery system which is now in the stage of
the developement by Amazon. 

This is what is called future of the delivery systems – The Prime Air, which
was taken as a joke a couple of years ago, is now developing and growing with
full seriousness.

As technology
continues to grow and play a larger role in consumers’ lives, industries have
transformed and adapted as well. Companies have moved away from brick and
mortar to predominantly online services as a result of ubiquitous Internet
access. Online companies reduce overhead costs, including rent and
wages, associated with operating a physical store.

While online
retailers are more convenient, purchases of goods and services are subject to
additional shipping and handling charges incurred by the consumer. Even though
technology has transformed a number of industries over the past 10 years,
shipping and postage has remained relatively unchanged. Traditional postal
service providers such as UPS, FedEx have remained the primary source of
shipping and handling for major retailers.

Recently, Amazon
has challenged the status quo with Amazon Prime Air. Amazon Prime Air is a
drone delivery system which anticipates package deliveries in 30 minutes or
less. While the financial and economic impacts of drones are robust, FAA
regulations in conjunction with privacy and safety concerns have delayed the
launch of commercial drone services

Traditionally, drones had
been only used in military technical sophistication, and high capabilities in reconnaissance
operation. However due to economies of scale, consumers can now purchase
drones for just $60.

With widespread
access, consumer companies such as Amazon have explored the use of unmanned aerial
vehicles for commercial purposes. Amazon Prime Air has promised 30 minute
delivery service for packages up to 5lbs. Google, in altruistic contrast to
Amazon, has developed aerial drones for environmental conservation and delivery
of medicine to remote locations. Powered by batteries, drones are more
environmentally friendly than delivery trucks.According to all
the achievements, organizational structure, and generally the behavior of the
Amazon Inc as a company it is obvious that all the tasks, such as development
of retail business, implementation of new ideas, and etc. Amazon Inc is surely
the leader in the industry. From the beginning Amazon as a company has always
been the game changer in the retail business and it is obvious that all of this
couldn’t be without the leader, of the company Jeff Bezos, who has proven that in
order to move the industry to the future you need to experiment and as his
quote says at the beginning of this essay « It’s not an experiment if you know it’s going to
work ».