In 1997, Amazon’s initial public offering was $18 per share and spent over $2.6 billion for its online presence, digital streaming, and e-commerce. In 1998, the organization diversified into 18 categories and 150 subdivisions (Jackson & Orebaugh, 2018). Amazon migrated to online marketing harnessing web data to enhance product cost, locating storage facilities to effective logistics, and exploring shipment designs. Beyond the e-commerce market, Amazon has presented innovative programs designed to integrate public space, innovation, and payment (Arrieta et al., 2019). The management moved from book rentals to other services areas to suit consumer needs. The company organized its patent trademark of ‘1-click checkout’ in 1999 to enhance customer service experience via digital streaming and e-commerce. In 2009, the management adopted cloud computing (SaaS) solutions to expand its grip on small business partnerships (Arrieta et al., 2019). By 2016, a business partnership agreement was signed between Amazon and BigCommerce, signaling the advent of substantial commercial sales, drone delivery network, and digital presence.
Business Profile
Amazon started as an online bookstore providing shared clicks for its end users. The organization launched its services via digital platforms and offered discounts to attract willing customers. The company’s head office is located in Seattle, USA, and has over 600,000 employees worldwide (Tou et al., 2019). Amazon serves end-users, content designers, suppliers, and business enterprises. Amazon’s organogram relies on corporate structure, business flexibility, and management stability. Jeff Bezos is the chairperson at Amazon, while Brian Olsavsky acts as the SVP & CFO. Amazon’s directors include Jeff Wilke, Jeff Blackburn, Andy Jassy, Dave Limp, Wei Gao, Jay Carney, Beth Galetti, and David Zapolsky. The company has operational heads at its sub-divisional levels for effective management and productivity. Amazon strategically retails products to end-users as its primary activity. The organization diversified into other services-oriented investments such as Whole Foods Market, Zappos, Kiva Systems, PillPack, Inc., and Twitch Interactive.
The organization generates profit via product sales, advertising services, cloud programs, and subscription investments. The firm’s business segments include North America, International, and Amazon Web Services. Amazon engages primarily in retail merchandise, digital content, consumer electronics, Amazon Prime, logistics delivery, Web video, Web services, Amazon Kindle stores, Amazon publishing, and cloud computing (Alqahtani & Gull, 2018). Amazon Web Services includes cloud solutions that offer digital resources for on-demand end users. The company leverage shared resources for efficient digital performance. For example, Amazon utilizes a combination of IaaS, PaaS, and SaaS architecture to enhance data storage, transfer, and security. The management established the EC2, a component of cloud services for virtual integration, service interface, and efficient scalability options. The company also provided storage services, networking architecture via AWS, and cloud computing technology. The retail products are distributed via online platforms and drone delivery services. Amazon stock, denoted AMZN, is a top gainer on the NASDAQ exchange (Ozo & Ubaka, 2015). AMZN sells at $3,294, with a market capitalization of over 1.65 trillion (Jackson & Orebaugh, 2018). The organization leverages customer satisfaction to provide dynamic service delivery as it undergoes continuous modification to suit business, economic, social, technological, and psychological trends. Amazon creates a brand impact by adopting a mix of differentiation and positioning strategies against its competitors.
The competitors include Kohls, Costco, Wayfair, Macys, Target, Bestbuy, Homedepot, Apple, Walmart, Netflix, Google, Microsoft, Oracle, and IBM. The rivalry includes investments in retail stores, web services, cloud computing, and subscription services. The management established an empire around by providing extraordinary service to customers while leveraging on distribution efficiency. Amazon’s initial objective was to remove the intermediary in the supply chain. As a result, the founder leased a large warehouse in South Seattle. Amazon is an MSP, supplying products, services, and innovations that connect customers. Becoming an MSP has been a progressive yet reliable technique (Ozo & Ubaka, 2015). The firm enhanced its initial technique of offering books online by expanding into other company sectors. The online retail market is fragmented, with large investors in smallholdings and retailers. Potential players can establish e-commerce websites with
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