Amazon, By Jeff Bezos

1641 WordsMar 26, 20177 Pages
Amazon was founded by Jeff Bezos in 1995 in Seattle, Washington. Jeff Bezos saw the potential of online retail while working as a computer specialist on Wall Street in New York City. After considering many products to sell he decided on books. Amazon exploded onto the market as the premier website to buy, sell, and rent books. Bezos pioneered the industry with innovations like one click shopping, online customer reviews, and order verification emails. The company’s revenues soared to $15.6 million dollars by the end of 1997. Despite the tremendous revenues Amazon failed to turn a profit until the last quarter of 2001. Jeff Bezos focus remained on innovation and long term growth, putting everything he earned back into developing new markets…show more content…
The PESTEL Framework describes six factors with which Amazon can evaluate the atmosphere outside the company, including political, economic, sociocultural, technological, ecological, and legal. Amazon operates worldwide, so it must follow political and government decisions around the globe. As an online only retailer, Amazon is concerned with policies that affect e-commerce, such as taxes, as well as government support for growing online businesses. In its quest for expansion, Amazon keeps tabs on political stability overseas and in developing countries because they benefit from potential expansion (Greenspan, 2007). Similarly, Amazon is also looking for stability in the economic environment because risk is minimized and growth opportunity is maximized. For sociocultural factors, Amazon benefits from increasing consumerism and online shopping habits (Greenspan, 2007). Again, as an online only retailer, Amazon profits from the trend moving away from traditional retailers and towards e-commerce. However, with increased online usage comes some technological factors that must be kept in mind. In today’s world, technological change happens in the blink of an eye, so Amazon must stay on top of the latest innovations while also minimizing the growing threat of cybersecurity. In regards to ecological factors, Amazon can look to the movement towards a “greener” planet by improving their environmental impact as well as their image by engaging in

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