is a global company that offers internet retail shopping services. Amazon was an online book retailer established 21 years ago during the 1994s, and has grown exponentially in sales and size as the years have gone by. Jeffrey P. Bezos started it in July 1994 and has led to its success. It was possible because of the strategies Amazon used. Emerging of online banking on the internet gave rise to the idea of online shopping. To become a competitive firm strong strategies are to be made. Amazon positions itself as a low-cost retailer and offers a wide range of products and services via online which is unique in the internet retail business. Amazon competes healthily and preserves its competitive advantages as it constantly upgrades itself in the dynamic market. It also shows that Amazon can continue to grow and achieve it mission and vision of being "earth's most customer centric
Since the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i...
Is Amazon a bubble waiting to burst? The following discussions in this research paper will explore several key issues from its birth to its debatable future. Amazon is not a stranger to arguments revolving around questions of its longevity and success. When the systemic bubble of 1999 arrived Amazon’s corporate goal was to get big, to do it fast, and to establish a hold of new markets before any other competitor. During this time frame Amazon began branching out and selling anything and everything. With the burst of the internet bubble in 2000 and 2001, Amazon changed its goal from growth to aggressively making profits in all areas of their business. In 2001, Amazon’s founder and CEO stated in a Wall Street Journal article “We’ll ferociously manage the products we carry so that we sell only products that are profitable. The thirty-pound box of nails isn’t long for our world” (Elmer-DeWitt, 2001).
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.
Throughout American history, it’s society has glorified the idea of being gritty and its virtues, such as perseverance, toughness, and courageousness. These ideas were apart of the American man that settled land from the east the west coasts, built business from the ground up, worked multiple jobs to singly support his family, or if need be, go off to war. Today, these virtues have spread much further throughout society, but have started to take backlash from camps of people who see life’s potential more developed by the quality of a person’s environment, rather than seeing how well someone can adapt to broken situations. These two camps have lead to opposing ideas in society, from workplaces that pamper every aspect of your life to women’s
Amazon.com has a number of strengths that can help them compete with other high-tech companies. They currently are one of the largest retailers in the world. This is an extreme advantage for Amazon.com in a number of areas such as marketing, distribution, customer base and supply. With such a large presence in the e-commerce industry, this allows Amazon.com to offer more bottom-line products such as movies, music, and ebooks along with the million of other products. This makes the Kindle an even more attractive device for consumers. Another strength Amazon.com has with their electronic devices is they are able to sell them much cheaper than their competitors. For example the Kindle HDX Fire 8.9 can be purchased new on Amazon.com for around
Scenario: Customers rave about the vast selection, fast shipping, and customer review option for each and every product on the Amazon.com website. The Fortune 500 e-commerce website, headquartered in Seattle, Washington, is the largest internet-based retailer in the United States. Customers are well informed about their purchase with customer reviews and Amazon has competitive prices. Amazon is one of the most successful businesses of our era and most valuable retailer of the country (Kantor & Streitfield, 2015). Amazon Prime members, a program with a yearly membership charge, receive special perks such as free shipping, unlimited streaming of television shows and movies, music streaming, downloads of free books, and many other deals and discounts
The year was 1995, when Amazon made its first sale, a book, sold from the Seattle home of founder Jeff Bezos. Eighteen years later Amazon has become an e-commerce giant entering the ranks of a Fortune 100 Company and the world’s largest retailer with sales and revenue topping 61.09 billion in 2012. This achievement is nothing short of astounding considering it’s humble beginnings. While adversaries question Amazon’s continued success following Bezos, “Everything I Know” philosophy will ensure their e-commerce world dominance.
However, AMZN faces intense price competition from bricks and mortar retailers as well as other Internet retailers. Other challenges and weaknesses inherent in Amazon 's business model include low switching costs for consumers when shopping online, and search engines that simplify and enable comparison shopping. Strengths of the company, in our view, include: strong brand name recognition; the breadth and depth of the company 's product lines; a user feedback feature that we believe helps to build trust and increase customer loyalty; what we see as a strong balance sheet, with over $17 billion in cash and marketable securities and no long-term debt; and efficient deployment of capital on technology to help promote a fast, user-friendly shopping experience. We believe the size of the market represents an opportunity for AMZN. In 2014, only about 6.5% of total U.S. retail sales were estimated to be e-commerce transactions, totaling $305 billion, according to the U.S. Department of Commerce. Meanwhile, Forrester Research expects e-commerce sales to increase at a compound annual growth rate (CAGR) of 9.5% over the next several years, reaching about $414 billion by
Amazon’s macro-environment is made up of six external factors: political, economic, environmental, technological, social, and legal conditions. These factors are important because they shape how the company operates and you must know each piece to be able to compete within the retail and eCommerce industry. An evolving political factor are the efforts the government has made toward punishing offenders of cyber-crime. This kind of thief wasn’t walking into your store, but hacking into your computer. This type of crime wasn’t possible before the internet. The government has started to take these crimes more serious as technology evolves. Technology is a factor that Amazon.com must invest heavily in. They are reliant on having top of the line technology to survive against cyber-crime and to stay relevant in the tech world. ECommerce is everywhere now and competition is very high. This brings in legal conditions; Amazon must know what laws exist in which countries because they are a
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
The Amazon was founded in 1994 by Jeffery Bezos with a sole aim of exploiting the internet to reach more and more customers given the fact that internet was increasing at a rapid phase. However, the company was at first focused on online bookstore but as it grew it invested in other goods such as electrical appliances. Currently, the company is placed in top 100 lists of fortune companies despite the ever growing competition in the online retailing business in the world today. However, the company has never fallen short of ideas, concepts, and strategies aimed at monitoring and developing plans that can put Amazon at the leading place in the global Internet retailing industry. This assignment will attempt to cover in details how Amazon can
People's jobs are being lost because of online shopping. The article, ¨ Amazon Is a 21st Century Deal with the Devil ¨ by Amy Koss talks about how online shopping is bad for the society. The author argues that amazon online shopping is bad because it is affecting people negatively . I agree with the author because she has convinced me as a reader that online shopping is affecting most people negatively.
Amazon's customer base has increased dramatically from 180,000 in 100 countries in 1996 to 12 million in 160 countries by mid-1999. In 1998, Amazon began to expand into other product categories. The Company began to sell music products and videos, and within two months o...
Amazon.com, as an e-commerce website has emerged as a leader in the e-business world. Originally, the company began as a website that sold books at discount prices, now Amazon.com has evolved into a marketplace for the world. Jeff Bezos, the founder and CEO, has changed the business model of the company many times. He is focused on expanding the selection of goods and services offered on the website, in an attempt to please customers. However, he is having trouble managing the priorities of his gigantic company, he should give the existing categories priority and worry about expansion at a later time.