Amazon Case Study

Amazon.com founded by Jeffery Bezos in 1994 and it incorporated as the earth’s biggest bookstore. He only started off with books and music, but later discovered the vast potential of the Internet and started coming up with other products to sell. He started off with just half a million in 1995 and went up to 1,640 millions by 1999. Amazon targeted the local traditional retailers that wished to develop online retailing capabilities. However, by 2001 amazon was at the brink of bankruptcy. The company grew exponentially and went from selling books and music’s to software’s, house supplies, toys, and electronics. It was responsible for distribution, warehouse inventory, and order fulfillment of all orders. Its business model expanded their product line to include almost every single product out there. At the time company had to consider the strengths, weaknesses, opportunities, and how much risk they were willing to take (threats). Company went from an online market place to providing web services to other online retailers and storage solutions. Amazon put in strong effort to gain market share, establish and maintain good relationship with customers and suppliers, develop the IT infrastructure to support, enhance, integrate all of their operations. The main man behind all of this is Jeffery Bezos.

Amazon stopped growing as rapidly until the profit started to come in, they were using the reverse logic, also came up priority membership (Prime), created Kindle, which brings amazon straight to the customer. The strength of Amazon.com is its technology, affiliate program, and vast customer base of millions of people. It is difficult for an online retailing to be successful but Mr. Bezos made it possible and continued the steady growth and financial performance. Their last gross profit for the year 2012 was $1, 512, 200, 000.

Amazons current reported revenue growth stands at 22%, which is low compared to last year’s results. Company is garnering $16 million