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Overthe time there has been numerous done over the performance ofdifferent companies. Being one of the giant companies’ onlineselling sectors, Amazon Company, which is the largest onlineretailer, was founded by Jeffrey Prestos Bezos in 1994 who has beenthe Chief Executive Officer since then. The Company has brought arevolution in the E-commerce sector by venturing into the unploughedlandscape in the world of internet. By starting as an onlinebookseller, the company set off in the budding era of the internet toestablish itself by taking advantage of the untapped resource, thenprogressed to music and videos (Anders, 78).
Amazonbecame a Company in 1997 attracting investors who had identified itspotential. The CEO Jeff Bezos ultimately wants to make Amazon theEverything Store. Currently Amazon Company boasts of selling a widevariety of media and non-media products. The company also developsits own products, mostly technological items and sells them toindustries and individuals worldwide (Merel, 2014). The NewYork Stock Exchange (NYSE)is the worlds largest stock exchange in terms of marketcapitalization, by participating in the NYSE, Amazon has made itsname among other companies trading under the NYSE platform.
Historybehind the Amazon Corporation
TheAmazon Company named after Jeffrey Preston Bezos, who was born inAlbuquerque, New Mexico in 1964, founded the ever-flowing SouthAmerican River. From an early age, Bezos displayed creativity andmechanical aptitude by creating and dismantling items. Bezos movedwith his family to Miami, where he discovered his affiliation tocomputers. He was a very bright student in school and wasvaledictorian of his high school class. He went to PrincetonUniversity legendary for physics, but ended up attaining a degree incomputer science and also in electrical engineering. He later workedat D.E. Shaw studying market trends in insurance, software, andinternet while using entrepreneurial skills. He met his wifeMackenzie Bezos while working there (Anders, 80).
In1994, Jeffrey Bezos discovered that internet usage increased by 2300%every year and saw a business opportunity in e-commerce. He quit hisjob ready to take the potential risk. He armed himself by studyingand reviewing the working of some of the best mail order companies.He settled on books and decided to attend the famous (ABC) AmericanBooksellers Convention to learn more about the business. With fundingfrom family and friends, Jeffrey and his wife moved to Seattle tostart up. He did not require much space because most of the dealingswith customers would be conducted online and therefore the firstoffice was in a two bed-roomed apartment including the garage.
In1995, Bezos opened the site to the world. Skeptics discouraged thisidea and many predicted its failure as an online bookseller.Investors did not imagine that the online sale of books would berewarding and thought it was a crazy idea to incorporate books to theinternet. However, by September of 1995, Amazon had sales amountingto twenty thousand dollars per week. In 1997, Amazon went public andtheir worth in the stock markets surprised investors as it wasproving to do well (Penenberg, 67).
By1999 the company had sold eighteen million items and thereforeJeffrey expanded by adding music and videos to the business. Theultimate goal of Amazon is to be the earth’s biggest online storetherefore the constant addition of more items into the site toincrease the number of customers. This ranges from services such asbanking and insurance for goods such as home appliances and toys. In2006, Amazon Web Services, which offers internet computer services,was launched, and is now one of the most reliable informationsources. The Kindle software, Kindle fire tablet, and Amazon firesmart phone are products made proudly by Amazon. Jeffrey Bezoscarefully selects the best brains in the technology world to help inproducing items that are customer friendly and which as well push thebrand name even further (Penenberg, 70).
Havinggrown to become one of the renowned companies in the United States,Amazon.com, Inc. runs as an online-retailer globally. However, thecompany is known to operate in two segments, the North Americasegment, and the global segment of the company. The company is knownfor its services s well as serving its customers through retailwebsites. This includes websites such as ‘amazon.ca’ and‘amazon.com’. The websites contain goods and content which arepurchased from vendors as well as goods that are offered by thirdparty sellers. In addition to selling goods to people globally, thecompany also offers programs that make it possible for sellers tosell their products on the company’s websites, their own brandedWeb sites as well as programs, which permits musicians, authors,Apps developers and filmmakers to publish and sell their content.Moreover, the corporation serves enterprises and developers throughits ‘Amazon Web Services’ (Amazon,82).This platform provides an access to technology infrastructure thatgives different businesses. Other services offered by the giantcompany include the famous ‘Kindle Direct Publishing which anonline platform, giving publishers, and the authors chance to offerand avail their publications in the famous Kindle Store (Harris,95).
TheAmazon is now a renowned brand name and Jeffrey Bezos is one of thebest CEOs. This can be highly accredited to the way Amazon handlescustomers. He has adopted the principle that the customer is alwaysright and hence has made satisfaction of the customers’ needs apriority in his company. Every decision made considers the customerfirst hence placing Amazon ahead of competitors and giving them anupper hand in gaining even more customers.
Amazonhas dominated the online domain for two decades since it wasestablished. The company boasts of having over one hundred and sixtyfive million customers worldwide and over fifty six thousandemployees. An effective and efficient marketing strategy is neededfor the success of any company to make it a brand name. The mainmarketing strategy emphasized by the CEO of the company is makingcustomer service their corporate goal. This is based on six corevalues, which are obsession by the customers, ownership, bias foraction, thriftiness, raised hiring bar, and innovation. All goals ofthe company are based on customer related objectives. InitiallyAmazon incurred huge marketing expenditures, especially on offlineadvertisements and therefore incurred losses. With time the companyhas shifted to more of an online advertisement being an online-basedbusiness, the returns have been well lucrative, and Amazon is now aworld known brand (Stock Picks, 2014).
Withthe humble beginnings of selling books only, Amazon relied heavily onword of mouth as a way to market it. This worked to a certain extentbecause book lovers have a culture of sharing. However, in 2007Amazon launched the ‘Kindle’, which is software that aids in theacquisition of books in soft copy. Using the Kindle one can acquire abook in a record 30seconds with a choice of over one million books inthe catalogue. By the year, 2008 Amazon had sold more than half amillion Kindle devices. The Kindle has now diversified and enablescustomers to get not only books, but also newspapers, magazines,blogs and short reads.
Amazonhas also personalized the sites and allows customers to air theirreviews with full disclosure in addition to seeking professionalreviews. Employees at Amazon have confirmation that all emails sentto them from customers are read, analyzed, and effective measurestaken. This is in line with Jeffrey Bezos objective to satisfy thecustomers’ needs and work at minimal defaults especially delays anddefects. The membership clubs in addition to personal feedback tocustomers, who are willing to disclose their email addresses, keepsAmazon in the front line as they notify them of any sales anddiscounts. It has been noted that during holidays Amazon offersdiscounts that attract a large number of customers.
Availabilityof Amazon on the internet gives them an advantage and puts them aheadof their competitors as a brand. Being able to diversify productsoffered Amazon is accessible to millions across the world. JeffreyBezos wants to make Amazon a site where one can purchase anything.Taking advantage of technology Amazon hopes to achieve customerconfidence as the ultimate online store that can meet any need.
Productsin Amazon Corporation
Amazonstarted out as an online bookseller, but has now diversified andoffers a wide range of products. The company offers tangible goods aswell as software and other online services. In an effort to expand,Amazon introduced music and videos into their products. The launch ofthe Kindle enabled users to not only download books very fast, butalso have a wide variety of the world’s best sellers. Video games,which are currently very much prominent, explain why Amazon chose toinvest in them. The company also supplies custom-made software toindividuals or institutions using modern day technology. Aninteresting trade is that of online auctioning which Amazon hasexplored in the recent past. This gives the customer the power toprice any product, which is then sold to the highest bidder(Penenberg, 69).
Amazonhas gained trust among their customers the world over and theirguaranteed delivery of service has enabled them to perform personalservices to customers such as insurance, travel, and banking. Amazonacts as an intermediary in connecting institutions to individuals.Due to increased internet fraud, being trustworthy in the cybercommerce is important and Amazon has achieved this without anyreasonable doubt. Therefore, customers feel very confident using anyof the services (Penenberg, 70).
JeffreyBezos has identified the power of modern technology and has tapped itto develop devices. The Kindle fire is a tablet that has very fastprocessing speed together with other features that have become anecessity to modern day world including a camera, digital storagecapacity and built in the office suite. The Amazon fire, a smartphone that was launched early this year puts Amazon on the forefrontto improving telecommunication and predicts the future of the companyin terms of market domination. The company also sells a wide range ofhome appliances and gives the customer a chance to make a wish listto narrow down the search.
Apartfrom being on the forefront to sell media items, Amazon is widelyknown to supply non-media items, which cover 80% of their productssuch as clothing, sporting equipment and roofing items hence makingit a one stop online store for all goods (Amazon, 2014). The futureof Amazon seems great with the sale of all products including theirown. The airborne octocopters, which are unmanned aerial drones, alsolie in the future of Amazon and are expected to deliver packageseasing truck congestion. It is therefore evident that with suchinnovations, Amazon will continue to dominate the world of e-commercefor long.
Amazonweb services (AWS) solutions enable Amazon Company to partner withbusinesses by enabling them to develop computer applications forspecific purposes. This enables businesses to easily manage hardware.Being cost effective and reliable, many industries have adopted theuse of the AWS solution. It has also received a warm reception due toits disaster recovery capability in software.
Amazonstarted as an e-commerce business wholly owned by Jeffrey Bezos.However, in 1997, Amazon became a company. Amazon has alwaysgenerated income, though in its formative years the company incurredlosses due to re-absorption of income for expansion and recurrentexpenditure especially an advertisement. Amazon has come a long wayto establish itself as a profit making corporation and ascending invalue in the stock market. This is due to diversification of productsoffered and giving the customer a chance to set prices. In 1999, thecompany stock was at $95. The stock has risen over 300% and generallytrades at $320. The company´s net worth is way above $30.2 billion.With over one thousand direct, institutional and mutual fund holders,the total number of shares held is 311 million. Jeffrey Bezos the CEOand founder of Amazon is the largest shareholder with 88 millionshares (Harris et al, 100).
TheAmazon Company focuses more on growth rather than profit generation,thus benefits the customer more than it thus benefits theshareholder. The CEO of the company emphasizes on cutting down onexpenses to the minimum. According to Bezos, unnecessary expensesderail the company’s progress and therefore should be done awaywith. Some of the pointers that has raised the company to the levelit is today is aspects such as’ using customer friendly interface,it also proffers products and services free of charge, it has alsomanaged to exploit affiliate resources and products, and finally,Amazon uses universal mentalities and behaviors.
Asstated earlier the Amazon CEO Jeffrey Bezos focuses more on expansionof the Company as opposed to profit generation. This means much ofthe revenue generated is invested back into the company as capitaland this has resulted in losses more than once. This means that theemployees of the Company are over worked and receive minimal wages.The fact that the CEO earns an additional income from being ashareholder, exempts him from the lower salary bracket as a way tokeep expenses at the minimum. This translates to the assumption thatthe possibility of employee de-motivation cannot be refuted meaningthe company might be operating at a lower capacity hence notachieving its full potential ((Harris et al, 103).
Technologicaladvancement elevates to greater heights as time goes by and it isapparent that the motion is very fast. With this, more online-basedbusinesses are being set up and customers now have a wide variety attheir disposal for them to choose. When Amazon began operations in1994, the Company received great response as it operated as amonopoly and for some time dominated the market alone (Stock Picks,2014). Amazon is still the leading online store in the world and hasa lot to offer. However, the pressure to maintain that status is evengreater owing to the fact that there are more competitors and hencemore customer sharing. Jeff Bezos has also been accused of usingdubious or underhand methods to lure customers to his site. At onetime, Amazon gave lower prices to new customers than to old ones toincrease membership and it was not long until that was identified. Anapology was issued to customers though this lowered the status ofsuch a renowned Company.
Someof the key aspects that have propelled the Amazon Company to performpositively in the NewYork Stock Exchange areits efficiency in the distribution chain and logistics. , strategicacquisitions, offering of superior and quality products and servicesand in turn making its name among the customers or its clients. Thegrowth and development of communication technologies have been apositive gain for the Amazon Company, this is due to the fact, thenumerous communication channels increases the contact between thecompany and its clients all over the world.
However,despite its performance, the company is negatively affected by thelack of physical presence of its retail offices. People usually likebusiness entities that they can and touch. In addition, one of themajor negative news about the company and that has negativelyaffected its performance in the stock market as well as itsreputation worldwide is the recent news that, Amazonhas been publicly criticized due to its tax evading practices withinthe UK and US, where it has its strongest market share and revenueincome. Other negative accusation in reference to the company includeclaims that, it has poor warehouse conditions for its employees,anti-competitive actions, price discrimination among other practices(StockPicks, 2014).
Amazonhas come a long way to establish itself as such a brand name and tobe the biggest online store. Starting from humble beginnings, thecompany prides itself for growth and diversification of its products.The digital era has also eased the marketing and Amazon is now aworldwide brand. The Company already has a firm foundation and withthe creativity of the CEO Jeffrey Bezos, the company will go evenfurther and venture into even more product variety.
Innovationshould be the agenda Amazon pushes to maintain its legacy. Theperformance of the company in the stock market has been tremendous inmaking the establishment one of the renowned establishments in theUnited States. Moreover, its performance against other globalbusiness entities has been notable globally due to its performance inthe NewYork Stock Exchange.Additionally, the company is increasingly cashing in on itscredentials as a reputable online retail pioneer, through selling itsexpertise to major store groups. Since the emergence of the onlineplatform there has been a notable change in the business aretransacted, and Amazon has been on the forefront in exploiting theonline platform effectively. This has been in turn been noted throughthe company’s performance analysis, such as its performance in thestock market.
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