Amazon And Yahoo Case Study

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History of Amazon and Yahoo and their respectively core business. This paragraph talks briefly about the history of Amazon and Yahoo and the strategies used by the two companies and their respective core business. Amazon is a Fortune 500 e-commerce company founded by Jeff Bezos in 1994 and launched in 1995 in Seattle, Washington. It was one of the first big companies to sell goods over the Internet. Its mission was offering million books to its customers. Amazon has grown relatively fast and its CEO Bezos has introduced variety of innovations as source of competitive advantage to strive and create the most successful company by adding most value to its customers and shareholders. Bezos continued to diversify Amazon’s offerings with the sale of CDs and videos in 1998, and later clothes, electronics, toys and more through major retail partnerships. Right in 1997, Amazon’s stock began trading in NASDAQ stock exchange. It boomed with yearly sales that jumped from $510,000 in 1995 to over $17 billion in 2011. Amazon’s mission changed to leverage technology and expertise in invaluable employees to provide customers the best shopping experience on internet and became the “Earth most customer-centric company”. The company introduced a new strategy called “Associate Program” which the goal was attracted new customers to its retail storefront and grows sales. This new strategy proves to be the most important advantage and the company’s sales revenue produced by the associates reached 40%. Another innovation announced by CEO Bezos in 2011 was shifted Amazon to tablet marketplace with the introduction of the Kindle Fire. CEO Bezos has invested aggressively to expand and leverage the customer base. By October 25, 2011 Amazon third quarter pr... ... middle of paper ... ...y. Process innovation is defined by Jones, 2013 as development of new process for producing products and bringing to the customers. Starting from Koogle to Mayer, all CEOs tried to bring innovation to the company using different tools. In 1996 Yahoo had a successfully public offering that increased $338 million by selling 2.6 million shares. Also, Koogle created a new media entertainment services that permit to be the dominant global communication, media entertainment and retail company. This strategy was made by partnership which makes a big difference, giving Yahoo internet life brand name recognition, and also connecting it to readers from many different touch points. Tim Koogle was hired as CEO and his key strategy to strength the company was hiring marketing experts who can use marketing strategies to boost company core competency and improve ad proceeds.
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