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,…
Throughout the last decade, Amazon has become one of the most sustainable companies within its industry. One of the major reasons that Amazon has been able to achieve a long term competitive advantage is by offering superior pricing power, capitalizing on a large market share and creating a well-known brand name. Through these achievements Amazon has been able to produce long term advantages that have made it difficult for other companies to duplicate. Amazon has an elite status within itself, throughout out the past decade it has both surpassed bench marks and created new ones. Amazon has set the bar so high that it would be extremely difficult for a company to reproduce their success. Amazon was first developed when e-commerce was in an infancy stage. This gave Amazon the opportunity to create and expand on the platform that we know today. It would prove to be very difficult if a similar firm were to try and duplicate the same success as Amazon. A similar firm would need to develop the credibility and reputation that Amazon has taken years to develop. Then it would need to establish a large client base that can bring together both buyers and sellers.…
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, which already offers digital movies/TV shows for rent and purchase on an individual-transaction basis, has launched a new streaming service making 5000 titles available at no additional cost to members of Amazon Prime, its membership program through which customers pay $79 annually for unlimited free shipping” (Kuzyk 2011. Amazon management have been successful anticipating the cyber-consumers trend by positioning themselves in a strong position for shoppers. They have learned from Blockbuster failure and they are getting clients from Netflix because they are more accessible and affordable. Amazon is providing an excellent customer service with their products making their service easier for customers by offering many services on one…
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. (2014). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Washington, D.C. 20549 Retrieved from…
Strategic Lens Amazon: Grouping: With a mission “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices,” . There are three things that can be inferred form Amazon’s mission statement, one is their extremely consumer centric business strategy, secondly to strive to enter into new markets and thirdly to achieve it through the least amount of resources. However there are two more aspects to Amazon’s strategy, which are absent from the mission statement – focus on Innovation and Operational excellence. The Strategic Grouping at Amazon is by Expertise/Function.…
Amazon’s 2012 financial statement is quite extensive. The statement reviews the business in general, risk factors, common stock, shareholder maters, and operational results. The business’ main goal is to be he Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators. Customers are served through the organization’s retail website. The website focuses on selection, price, and convenience. Amazon also offers programs that enable sellers to sell their products on its website and their own branded websites. The company serves developers and enterprises of all sizes by providing access to technology infrastructure that enables virtually any type of business. In addition, it serves authors and independent publishers with Kindle Direct Publishing. Knowing the…
Amazon.com has a bunch of growth strategies in place. Their number one strategy is the fact that they start with the customer and work their way backwards. To them as a company they live by what all companies should live by – customer satisfaction is their number one goal. Amazon.com themselves even said that even if that makes third-party sellers angry about low-priority placements (James). Another one of their strategies is instant gratification. The way they are pursuing this strategy is by keeping up with their Kindle device that they created. Through kindles, customers can instantly buy a book, instantly download music, and instantly watch a movie on demand. With customers being able to do all this instantly, it makes them want to come back when they need more books, music, and movies.…
The purpose of this essay is to perform financial statement analysis on Amazon.com, Inc. (NASDAQ: AMZN ). We start with an introduction of Amazon and its industry. We then evaluate the company’s financial position, liquidity, operating capability and financial flexibility using different ratios. To evaluate the financial performance of Amazon.com, Inc we disclose recurring NICO and do full ROE disaggregation.…
According to Amazon’s official Facebook page, Amazon’s vision is to be Earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.…
In 1999, Amazon tried online auctioning system, but was never able to break the competition against ebay, although they tried something new it has never served to advance the company. Amazon CEO Jeff Bezos said “innovators also need to have a willingness to fail and to be misunderstood for long period of time. He continues to state a willingness to fail and to be misunderstood then what you can do is you ramp up your rate of experimentation”. Experimentation as our books puts it is making a reasoned analysis of an opportunity, and envisioning potential solutions. As a company, Amazon has experimented with its customers through their product to be the best and discount…
Amazon’s mission statement is “to be earth’s most customer-centric company where people can find and discover anything they want to buy online.” Amazon is now the world’s largest online retailer selling just about any product, even when they do not make a profit from them. Jeff Bezos (Amazon’s CEO) uses a cost leadership strategy to produce products and services with a lower cost than the competitors do. By offering the lowest prices he gains market share and brand recognition. For this strategy to succeed Amazon has to provide the widest range of products to achieve the economies of scale and benefit from the low costs of displaying those products online. Customer service is “first class” in Amazon. They have a reputation for being reliable, convenient, offers one of the lowest and fastest shipping, and once again the lowest prices. Strategic acquisitions by Amazon have also helped them thrive. They have acquired many small e-books companies to software companies and even Zappos, and Audible.com.…
Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.…
Everything they do is based on the future of their company. " The fulfillment of their statement enhances the electronic business for long-term success in the worldwide market" (Gregory, 2017). Their statement also push Amazon's electronic business to be the best. Amazon gives their customers the opportunity to get their items shipped in two days by signing up for Amazon Prime. Amazon prime is the best idea they could have created.…