History & Evolution
Amazon.com,Inc was founded in 1994 by Jeff Bezos and went online in 1995. The company‘s headquarter is in Seattle, Washington, United States. The company started as an online bookstore which could offer more books than the conventional book store. Bezos wanted the company’s name to appear first in lists and wanted it be as big, exotic and different as the Amazon River and therefore he named the company after the river. Since 2000, the company’s logo is an arrow from A to Z representing customer’s satisfaction ( as it forms a smile) and the goal to have every product in the alphabet. The company diversified its business from being an online bookstore to selling DVDs, CDs, MP3 downloads, computer software, video games, electronics, apparel, furniture, food and toys.
Amazon.com formed various merchant partnerships by operating & powering the websites for retail companies such as Sears Canada, Benefit Cosmetics, bebe Stores, Timex, Marks & Spencer, Mothercare and Lacoste. The website CDNOW is also managed by Amazon.com. However, there are merchants that have ceased partnerships with Amazon.com such as Target, Borders Bookstore and Toys R Us. Just recently in October 18th, 2011 DC comics announced partnership for exclusive rights to their many popular comics which caused Barnes and Noble to remove these titles from their shelves.
Amazon has an unusual business model because did not anticipate the company’s profit for four to five years since inception. The “slow” growth provoked stockholders complaints that the company did not reach its profit quick enough. However, Amazon was the first few companies that had persevered after the dot.com burst and turned its first profit in the fourth quarter of 2001: $5 billion on 1cents per share on revenue of more than 1 billion. And this has demonstrated that the business model could be profitable. With the launch of Amazon Marketplace, customers...