Amazon.com is also a Kindle software which enables to

Amazon.com

 

It’s not an experiment if you know it’s going to
work.

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– Jeff Bezos

Introduction

Amazon.com
Inc. is the leader in the online retail business that deals with electronic
products and cloud hosting services. The company was founded by Jeff Bezos in
1994 but the website, which is the core marketing and selling platform for the
company, was launched in 1995. Currently, the company’s headquarters are in
Seattle, Washington, US. The company operates several websites that target
different markets i.e. in UK, France, Japan, China, Italy and Germany. The
company is also planning to launch other websites that will target Netherlands,
Poland and Sweden. Apart from selling electronic products, Amazon.com also
offers cloud hosting services to companies all over the world. Amazon is unlike any other retail site, differs
from its competitors in that customers have numerous options when shopping on
the Amazon website. When compared to other book sellers for example, Amazon
offers features that other book sellers do not.

One
of the Amazon’s project – the Amazon Prime program offers different perks, such
as allowing members to “rent” e-books for a short period. Amazon
customers may also shop from a huge variety of items, and even download and
watch television programs or movies. In terms of the Amazon’s Kindle/Kindle
Fire and Apple’s iPad, the difference is in the way that the company makes
money. Amazon strives to make money more from sales after the sale of the
Kindle device than the actual selling of the reader itself. For example, people
who purchase the Kindle will continue to purchase e-books through Amazon. There
is also a Kindle software which enables to use this product on the other
platforms, such as PC’s tablet’s laptop’s and etc.

Throughout the
first four years of business, the company did not make any profit and many
shareholders were overwhelmed by the nature of business the company was engaged in. Soon critics were proved
wrong because during the fourth fiscal year the company made profit. Profit was
not the only book marker but the fact that there seemed to be a major drift in
selling of books from bookshops to eBooks the company was on track to made even
more exploits as the online market continued to increase. As result of the
tremendous growth, Jeff Bezos was announced «Person of the Year» by the Times Magazine.

Key Dates

·       1994 – Founded by Jeff Bezos

·       1995 – Launch of website Amazon.com

·       1997 – First launch on IPO

·      
1998 – Amazon.com enters the
online music and video business; companies are acquired in the United Kingdom
and Germany.

·      
1999 – Amazon.com expands into selling toys, electronics, tools and
hardware, and Jeff Bezos is named «Person of the Yeaar» by Times Magazine

·      
2012 – Purchase of Kiva systems (now Amazon Robotics

·      
2016 – Jeff Bezos announced that they made first delivery with the drone

·      
2017 – Purchase of Whole Foods for 14 billion $

 

                         

 

Interesting Facts

Originally Jeff Bezos wanted
to give the company the magical sounding name “Cadabra. But “Amazon’s
first lawyer, Todd Tarbert, convinced him that the name sounded too similar to
the company named “Cadaver,” especially over the phone. He finally
chose “Amazon” because he liked that the company would be named after
the largest river in the world, which was described on one of the company’s earliest
logos.

Amazon got started out
of Bezos’ garage and the servers that the company used required so much power
that Bezos and his wife couldn’t run a hair dryer or a vacuum in the house
without blowing a fuse. In the first month of its launch, Amazon had already
sold books to people in all 50 states and in 45 different countries.

                                           

 

History

 

The
Early 1990s:

 

The
beginning of the Amazon started in 1994 when Jeff Bezos left his position as
vice-president of the Wall Street firm D.E. Shaw, moved to Seattle, and began
to work out a business plan. He started to make up a list of 20 products which
are more likely to be popular to be sold on the Internet. By the method of elimination
he shrank the list to
five most plausible to give profit: CD’s, books, videos, and computer software
and hardware. Bezos eventually decided that his venture would sell books over
the Web, due to the large worldwide market for literature, the low price that
could be offered for books, and the tremendous selection of titles that
were available in
print. He chose Seattle as the company headquarters because of its large technological
work force and its optimal location for large book distribution center in
Oregon. Then he worked to raise funds for the company while also working with
software developers to build the company’s vital marketing platform – the web
site. The web site was launched in July 1995 and quickly became the number one
book-related site on the Web. After only four months of operations, Amazon.com
became a very popular site on the Web, making high marks on several
Internet rankings.
It climbed up to the sixth place of the ranking of the best sites on Point
Communications’ “top ten” list. The site opened with a searchable
database of over one million titles. Customers could enter search information,
prompting the system to surf the company’s database and find the desired
titles. The program then displayed information about the selection on a
customer’s computer screen, and gave the customer the option to order the books
with a credit card and have the books shipped in a just a few days.

 

Unlike
its large competitors, such as Barnes & Noble and Borders, Amazon.com
carried only about 2,000 titles in stock in its Seattle warehouse. Most orders
through Amazon.com were placed directly through wholesalers and publishers, so
no warehouse was needed. Amazon.com would simply receive the books from the
other sources, then ship them to the customer. At first, the company operated
out of Bezos’ garage, until it was clear that it was going to be a success,
necessitating a move to a Seattle office, which served as the customer support, shipping, and receiving area. It was
interesting that, because of the Internet, such a small venture could realize
such a broad scope so quickly; within a month of launching the web site, Bezos
and Amazon.com had filled orders from all 50 states and 45
other countries.

 

As
a relatively young venture in the Internet commerce, initially Amazon strived
to set the standard for web businesses. With that goal in mind, Jeff Bezos went
to work on making the web site as customer friendly as possible and relating
the site to all types of customers. For those people who knew what book they
were looking for and just wanted quick performance and low cost, Amazon.com
offered powerful search capabilities of its expanded 1.5
million-title database. The company also began offering 10 to 30 percent
discounts on most titles, making the prices extremely affordable. For other
customers who were just looking for something to read in a general area of
interest, Amazon.com offered topic areas to browse, as
well as lists of bestsellers, award winners, and titles that were recently
featured in the media. Finally, for people who could not decide, Amazon.com
offered a recommendation center. There a customer could find books based on his
or her mood, reading habits, or preferences. The recommendation center also
offered titles based on records of books the customer had purchased in the
past, if they were return customers to the site.

 

Broadening  the horizon

 

In
March 1998 Amazon’s customer account reached 2.3 million, it was an increase of
50 percent in just three months, and mind-bending increase of 564 percent over
the previous year, it took Amazon.com 27 months to serve its first million
customers and only six months to serve the second million. This feat made
Amazon.com the third largest bookseller in the United States.      

 

Company
has also expanded its serving range through a trio of acquisitions in early
1998. Two of the companies were acquired to further expand Amazon.com’s
business into Europe. Bookpages, one of the largest online booksellers in the
United Kingdom, gave Amazon.com access to the U.K. market. Telebook, the
largest online bookseller in Germany, added its German titles to the mix. Both
companies not only gave Amazon .com access to new customers in Europe, but it
also gave existing Amazon.com customers access to more books from around the
world. The Internet Movie Database (IMD), the third acquisition, was used to
support plans for its move into online video sales. The tremendous resources
and information of the IMD served as a valuable asset in the construction of a
customer-friendly and informative web site for video sales.

 

Another
big change in 1998 was the announcement of the company’s decision to enter into
the online music business. Bezos again wanted to make the site as useful as
possible for his customers, so he appealed to them for help. Several months
before officially opening its music site, Amazon.com asked its bookstore
customers and members of the music profession to help design the new web site.

 

Amazon.com
ended the second quarter of 1998 as strong as ever. Cumulative customer
accounts broke the three million mark, and as sales figures for Amazon.com
continued to rise, and more products and titles were added, the future looked
bright for this pioneer in the Internet commerce marketplace. With music as a
part of the company mix, and video sales on the horizon, Bezos seemed to have
accomplished his goal of gathering a strong market share in the online sales
arena. As Bezos told Fortunemagazine in December
1996: “By the year 2000, there could be two or three big online
bookstores. We need to be one of them.”

 

 

 

Organizational
Structure

 

Amazon’s
orgaznizational structure is considered as «Functional Organizational
Structure». This structure focuses
on business functions as bases for determining the interactions among
components of the organization. The following characteristics are the most
significant in Amazon’s corporate structure:

 

1.     Global function-based groups

2.     Global hierarchy

3.     Geographic Divisions

 

 

Global function-based groups

 

It may be considered as the soundest part of the Amazon’s organizational
structure where business has a dedicated team and a senior manager.

This is leads to efficiency in facilitation e-commerce operations within
the company. These are the major function-based groups in Amazon’s
organizational structure:

 

·       
Office of the CEO

·       
Business Development

·       
Amazon Web Services

·       
Finance

·       
International Consumer Business

·       
Accounting

·       
Consumer Business

·       
Legal and Secretariat

 

Global hierarchy

 

This is the most common type of organizational structure which in Amazon
Inc, it is expressed in terms of global system of vertical lines of command
influenced by the authority of the firm.     For example, senior
managers’ directives are applied throughout the organization, affecting all
relevant offices of the company worldwide. The strategic objective of this
feature of the corporate structure is to facilitate managerial control of
Amazon’s entire organization.

 

Geographic
Divisions.

 

Amazon’s organizational structure
also involves geographic divisions. In this structural characteristic, groups
are based on geographic regions and related business goals. For example,
Amazon.com Inc. uses geographic divisions to make it easier to manage the
e-commerce business based on economic conditions of certain regions. The
strategic objective in having this characteristic of the organizational
structure is to enable the company to address issues or concerns relevant to
each geographic region, considering differences among regional markets. Amazon
has a simple approach for this structural feature, involving the following
geographic divisions in its operations:

 

 

·       
North America

·       
International

 

 

Innovations

 

 

There a lot of things in routine,
which makes our life easier for which we should be grateful to the simple but
genius innovations of Amazon. From purchasing things in only one click to
review lists in websites without which we cannot imagine our online shopping,
everything is invented by the Amazon. Here are some of those innovations which
are genius because of their simplicity.

 

 

1.    
 1-Click

 

Everytime if you buy clothes, or make an order online
and you push a button named «Buy», know that you can do this because of Amazon,
as this function was invented and patented by Amazon Inc.

 

2.     Recommendations

 

The ultimate website of Amazon and can determine
customers’ purchases, your ratings and determine customers’ interest and
recommend something in what that particular customer can be inretested in.

 

3.     Reviews

 

Customers can add a video or written review for any
prodcuct listed on the website to make other customers to make their decision
about item.

 

4.     Amazon Wish List

 

This list enables to customer to add products they
would like to have on the digital ailes of the Amazon.com. With Universal Wish
List customers can add products from any website to their Amazon Wish List in
just one click

 

5.     Aurtorip

 

AutoRip gives customers
free MP3 versions of CDs and vinyl music they purchase from Amazon. When
customers purchase AutoRip CDs and vinyl, the MP3 versions are automatically
added to their Cloud Player libraries where they are available, free of charge,
for immediate playback or download.

 

6.     Autorip

 

It is the best selling e-book to which you can upload
books and carry them wherever you want. Moreover, the significant thing is that
the screen are eye-harmless so you don’t hurt your eyes as much as reading a
book from a tablet.

 

        Vision of the Future

 

In 2016 Amazon founded  a new
subsidiary which is called Prime Air. Prime Air is a conceptual drone-based
delivery system which is now in the stage of the developement by Amazon.

 

This is what is called future of the delivery systems – The Prime Air, which
was taken as a joke a couple of years ago, is now developing and growing with
full seriousness.

 

As technology
continues to grow and play a larger role in consumers’ lives, industries have
transformed and adapted as well. Companies have moved away from brick and
mortar to predominantly online services as a result of ubiquitous Internet
access. Online companies reduce overhead costs, including rent and
wages, associated with operating a physical store.

While online
retailers are more convenient, purchases of goods and services are subject to
additional shipping and handling charges incurred by the consumer. Even though
technology has transformed a number of industries over the past 10 years,
shipping and postage has remained relatively unchanged. Traditional postal
service providers such as UPS, FedEx have remained the primary source of
shipping and handling for major retailers.

Recently, Amazon
has challenged the status quo with Amazon Prime Air. Amazon Prime Air is a
drone delivery system which anticipates package deliveries in 30 minutes or
less. While the financial and economic impacts of drones are robust, FAA
regulations in conjunction with privacy and safety concerns have delayed the
launch of commercial drone services

Traditionally, drones had been limited to military use due to high costs and
technical sophistication. However due to economies of scale , consumers
can now purchase drones for just $60.

With widespread
access, consumer companies such as Amazon have explored the use of unmanned aerial
vehicles for commercial purposes. Amazon Prime Air has promised 30 minute
delivery service for packages up to 5lbs. Google, in altruistic contrast to
Amazon, has developed aerial drones for environmental conservation and delivery
of medicine to remote locations. Powered by batteries, drones are more
environmentally friendly than delivery trucks.

 

Conclusion

According to all
the achievements, organizational structure, and generally the behavior of the
Amazon Inc as a company it is obvious that all the tasks, such as development
of retail business, implementation of new ideas, and etc. Amazon Inc is surely
the leader in the industry. From the beginning Amazon as a company has always
been the game changer in the retail business and it is obvious that all of this
couldn’t be without the leader, of the company Jeff Bezos, who has proven that in
order to move the industry to the future you need to experiment and as his
quote says at the beginning of this essay « It’s not an experiment if you know it’s going to
work ».

References:

·       
panmore.com/amazon-com-inc-organizational-structure-characteristics-analysis

·       
www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4?IR=T#amazon-wasnt-the-companys-original-name-1

·       
https://en.wikipedia.org/wiki/Amazon_(company)     

·       
www.investopedia.com/articles/investing/010615/how-drones-are-changing-business-world.asp

·       
www.brainyquote.com/authors/jeff_bezos

·       
www.edition.cnn.com/2013/12/02/tech/innovation/amazon-drones-questions/index.html

·       
www.forbes.com/sites/gregorymcneal/2014/07/11/six-things-you-need-to-know-about-amazons-drones/#5247e1fb6777

·       
www.nytimes.com/2017/06/28/technology/amazons-vision-of-computings-future-an-information-appliance.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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