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Amazon competitive advantage strategy
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Introduction:
This paper is going to analyze and talk about an amazing company, Amazon. It will give us a better understanding of what the financial situation of the company is and how it has come so far. This paper’s main focus will be on Amazon’s financial perspective rather than marketing or human resources management (HRM) or consulting. Before doing analysis of the company, this paper will tell about Amazon’s history, competitors and their products and services. Amazon changed the way people buy product for themselves. Amazon is a company with a website where people can buy products such as books, shoes, cloths, gadgets and accessories etc. (Amazon.com)1 Moreover, people get all those products delivered at home. However, if people don’t
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Amazon’s roots are binding in the American soil which means Amazon is an American company based in Seattle and launched in 1995. (09.04.2017, Avery Hartmans, Business Insider, 15 fascinating facts you probably didn’t know about amazon)3 Amazon came a long way through struggling in the past. Amazon founder wanted to give the company name Cadabra but his lawyer convinced him that the Cadabra name sounded too similar to Cadaver particularly over phone. (3) Nevertheless, founder finalized the company name Amazon at the end. Amazon started its business with selling books online. In the first month of its launch, Amazon had already sold books to people in all 50 states and in 45 different countries. (3) Amazon’s founder had an amazing idea and he made that successful because everyone can see that Amazon still exists today. In 1997, Amazon started its public offering (IPO) in Nasdaq and their value was modest 438 million dollars. (15 May 2017, Rani Molla and Jason Del Rey, recode, Amazon’s epic 20-year run as a public company, explained in five charts)4 Through this reader has information that Amazon was a multi-million dollars company. Three years later, in year 2000 Amazon’s third-party seller business launches and Amazon also launched its new logo with arrow running from the A to Z which displays their desire to sell everything from A to Z. (15 Aug 2015, James Quinn, The Telegraph, Amazon timeline: from internet bookshop to world’s biggest online retailer)5 Everyone knows that what happen in start of 21st century. Dot com bubble busted, and many companies could not survive that means they went bankrupt or out of the business. Nevertheless, Amazon survived and moved on with their plan and they were still doing good. There are many people behind the success of Amazon.com but there is one-person, Jeff Bezos, who is really most important to the company because, in the end, he is the owner
History”, n.d.). But the unbelievable pace at which Amazon added new products and new customers proved to be a formidable barrier for any competitors. Within the first 10 years Amazon accomplished an unbelievable feat; it had 49 million customers and 6.9 billion dollars in revenue, and it had done so by selling some products at a loss to build market share (Rivlin, 2005). At times it was difficult leveraging so much capital to grow market share, but Jeff Bezos’ focus on the customer and long term growth of the company proved to be the real reason Amazon didn’t fall prey to the .com bust like so many other internet
Since 1996, when Amazon.com was incorporated it has never offered dividends to its shareholders (Nasdaq, 2015). The company’s dividend policy is not to pay dividends so that it is reinvested by seeking out opportunities and developing new products (Reeves, 2012, p. 17). In addition, the company’s net income has been fluctuating since 2004. According to Market watch (2015), the company’s net income in 2010 was US$1.15 billion, it reduced to US$ 631 million in 2011, it reduced further to US$ 39 million in 2012 before increasing to US$ 274 million in 2013. In 2014 the company’s net income reduced to US$ 241 million. The fluctuations in net income arise from strategic investments that have long-term returns. Stewart, (2014), notes that the high prices of Amazon.com’s shares are due to investors’ positive outlook about the company’s profitability in future. In this regard, the long-term bets have paid off the company resulting to investor confidence. Amazon 's net income for the three months ending in June 2015 was $92 Mil. Its net income for the trailing twelve months (TTM) ending in June 2015 was $-188 Mil (Bezos, 2015). In comparison to three of its top competitors, Amazon has the lowest net income.
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
Treanor, T.. (2010). Amazon: Love Them? Hate Them? Let's Follow the Money. Publishing Research Quarterly, 26(2), 119-128. Retrieved February 24, 2012, from ABI/INFORM Trade & Industry. (Document ID: 2377177581).
Although Amazon has been active trying to find the perfect strategy to make profits, the numbers in its financial statements had not shown the most optimal results. We have discuss that even though its strategies have been right according to supply chain and logistics methodologies and theory, something had been missing to represent this successful strategies into financial results. It is seen that Amazon had spent too long time finding the right strategy which the last might be the one because in the financial statements profits started to come up. Amazon still have a long way to go to mature its strategy and represents it into profits for its shareholders.
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 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).
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
Amazon.com, Inc. alternately destined to be known as Amazon is an American electronic business and distributed computing organization with home office in Seattle, Washington. It is the biggest Internet-based retailer in the United States. Amazon.com began as an online book shop, later they began to offer CDs, video downloads, DVDs, Blue-beams, MP3 downloads/streaming, book recording downloads/streaming, programming, computer games, gadgets, attire, furniture, sustenance, and toys. The company also produces consumer electronics, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone and is the world's largest provider of cloud infrastructure services (IaaS). Amazon additionally offers certain low-final items like USB links under
Amazon.com was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers
Amazon’s also tried to spearhead the industry by introducing the customer-pleasing traits in terms of the technology, order fulfillment and retailing strategies categori...
Amazon is best known for their kindle, fast shipping, and selling various products (Smith). With Amazon being such a large corporation, professionalism, academics, character, and engagement are crucial parts of the success of the company. Professionalism: Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about $0.6 billion, which held steady growth from 1998-2006 (“Amazon.com”).
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Bezos’ vision and mission statement for Amazon is “Our vision is to be earth 's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” For the most part, this vison has been achieved, Amazon is the “top revenue maker in online retail worldwide” and is geared towards giving consumers the ability to find what they want on their marketplace site. In 2014, Amazon’s mission statement was changed “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” This was due to Amazon’s expansion of their range of consumers from only customers to customers,
Amazon is the world’s largest retailer online. Founded in 1994 it has started as an online bookstore but soon expends its catalog with software, video games, electronics, furniture, food, toys etc.
Jeffrey Bezos, the founder and current CEO of Amazon.com, initially started the company as an online bookstore in 1994. Within several months, Amazon spread its operation to all 50 states and abroad. Presently, customers from over 45 countries buy at Amazon. Over a short period of time, the company expanded sales to electronics, video games, software, CDs, DVDs, MP3 downloads, food, furniture, apparel, jewelry, and toys. Today, the company even produces its own products such as the Kindle series. Also, Amazon.com is one of the major providers of cloud computing services. Currently, the company is the largest global online retailer responsible for 20% of online retail market share.