Case Study MG495
TO: Jeff Bezos, Founder & CEO, Amazon.com
DATE: 04/06/08
SUBJECT: Amazon.com Analysis
EXECUTIVE SUMMARY
Amazon.com was founded as an online bookstore in July, 1995 and went public in May 1997. In June, 1998 Amazon.com launched its music store. Since then Amazon.com has become the most prominent Internet retailer. Over time Amazon.com has added several products including electronics, health and beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several services such as auctions, 1-Click ordering, and zShops. Amazon.com has expanded nationally and internationally and now operates several customer service and distribution centers in the United States and international web sites that
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This is due to Amazon being able to collect payments immediately for sales, therefore generating a large amount of working capital. Amazon made use of the partnerships and affiliation agreements to supplement its own product lines, with retailers like The Gap, Target, Eddie Bauer, Nordstrom, and Toys “R” Us. The company’s competitive market position within its industry
Threats One of the environmental threats facing Amazon was the overall economic malaise of the U.S. and world economies, the Internet Tax Moratorium law was up for renewal, with no assurance of its being extended and online stalwarts EBay and Yahoo were expanding into Amazon.com’s markets. The Founder of Amazon was faced with the task of developing an effective differentiating enterprise wide strategy to prosper against the competition over the intermediate and long-term futures. The stock market pressured the company to produce consistent operating profits and to prove that its business model worked financially over the long term.
IV. Stakeholder Analysis
A. Government Agencies – The Federal Communications Commission, is a commission that defines the broadband to meet customer broad communication needs and desires. B. Labor Unions – Since Amazon is an online buying center, there are no labor unions. These unions exist when there are enough in center employees to need protection as an
Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.
Through selling more in a lower price, Amazon can achieve economies of scale, which in return can increase their bargaining power over its suppliers and partners.
With all those areas of sales, it could be safe to assume to say that Amazons has made itself a competitor of nearly every consumer based industry in retail. Amazon directly competes with Netflix, Apple, Barns and Noble, Overstock, Walmart, Target, Best Buy, and many others. In competing with so many various companies, in so many industries, Amazon must keep focused on their quality of service, and supply chain management to maintain their
Amazon faces threats from new entrants. It’s extensive exploitation of the economies of scale makes it difficult for new entrants to cross the barrier. It is nearly impossible to compete on the Amazon’s size and momentum, however, it is possible for new entrants to enter through a different angle. For instance, potential entrants may become more creative and innovative. New entrants can diversify their markets so that they could be unique in the industry and attract certain customers. These customers may gravitate to other websites and as a result, Amazon can lose business.
Industry: Amazon’s business concept not only helped Amazon grow, rather it developed a value network for all the industry
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
Amazon.com, the biggest online retail giant of the current age, was not always the titan of industry it is today. Originally, Amazon.com or “Cadabra” as the founder and CEO of Amazon.com Bezos wanted to call the company, was just an online book retailer. After some naming trouble, he eventually decided on Amazon due to the founder’s fondness for the river in South America. However, since the beginning Bezos knew he wanted Amazon to be “an everything company”.
Amazon is a pioneer in online retailing. Through 3 third party agreements, the company offers the world’s largest choice in consumer products including but not limited to books, CDs, DVDs, electronics and office furnishings. The company has offices in 138 locations in 32 countries. Initially, the company’s purpose was to offer customers the opportunity to purchase books quickly and cheaply. Amazon has however grown since then to offer a wider variety through partnerships with more established companies such as Yahoo, Inc., America Online Inc., Netscape. They allowed the companies to use their website to promote its services and reach a greater audience. The company is worth 29.7 Billion Dollars and is traded on the US stock
Summary Amazon.com is an online retailer that sells all sorts of items to customers all over the world. This report examines the history of the company, explores its competitors, job opportunities, Employee Benefits, and explores its locations.
Amazon has grown admirably from its initial beginnings as a small online bookseller to a giant superstore company. During this process of rapid growth, it has incurred significant losses and it becomes more expose to a greater competition and threats. Cutting costs and achieving profitability remain Amazon's greatest challenges. However, there are key factors such as a strong brand, providing customers with outstanding value and a superior shopping experience, massive sales volume and realizing economies of scale which contribute a lot to the success of this company.
Summary statement of the problem: Amazon.com is a company that was founded by Jeff Bezos several years ago. A very educated and determined man with a vision and idea of what he wanted his company to be. In the second quarter of 2003 he realized that he would have to address some of his concerns about Amazon.com. The first being that the Internet Tax Moratorium law was going to be up for renewal, with no assurance of it being extended. Another issue at hand was that eBay and Yahoo! were starting to expand into Amazon.com’s markets.
Amazon.com is the largest online retailer based in the United States. The organization employees more than 150,000 people worldwide. Amazon.com was at the forefront of e-commerce in the 1990’s, starting out as an online bookstore, the company has morphed into a modern day juggernaut. Amazon now offers a diverse selection of items and services and has retail websites specific to over ten countries worldwide. As one of the 1st big online retailers, the company paved the way for the boom in the online shopping market. Operating as Amazon.com since 1995, and headquartered in Seattle Washington the company has grown to encompass a plethora of online services and products. Amazon is not only a leader in
My work will be focusing on one of the biggest E-commerce company in the world and the number company in the United States, Amazon.com. Throughout this expository, I will highlight its main functions, prowess, power, and also its influences in our daily life. Therefore, our concerns will be consecutively Amazon.com origin and its founder’s as well, and its financial information and bringing out the facts that make it a unique and successful company despite its light weaknesses.
The lunched of Amazon.com in July of 1995 was the creation of a new and bold way of doing business on the Internet. Amazon.com forced the traditional physical world brick and mortar retailer in the book industry to change the way they target the industry's consumers and then epitomized Business-2-Consumer e-retailing. Although, Amazon.com started as an online bookstore,
Over the years Amazon has been moving up the ladder and using all the resources that they can to help their company succeed and reach their full potential. Amazon has become multibillion company and one of the world’s largest online retail sellers. Providing a variety of things that keeps consumers wanting more. They started selling just books and grew into selling clothes all the way down to car parts. . Making a global platform for individuals and business retailers to sell products and as well as buy. As time began to move and technology grew so did Amazon, they decided to update and improve their management information system making their competitors guessing their next move.