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Amazon Case Study

2473 words - 10 pages

Short Corporate history review: Everything started in 1994 when Jeff Bezos founded the biggest online bookseller called Amazon. The company started its activity for the first time in 1995 in Seattle, United States.The company is well known for its continuous innovation. They are customer oriented because they have adapted the latest technology to the customer needs. (Schneider, 2014) In few time the company has reached a large number of downloads and its first success was recorded in 1999.The name of the world’s largest online retailer come from the biggest river in the world, Amazon. This choice was based on a simply reason, to give the idea of the biggest company in the world. (Benedictus, 2013)
In 2007, they launched the new generation product, the Kindle and after that, in 2009 Kindle applications for iPhone, iPod Touch, Mac, Blackberry and Ipad. Nowdays they count a very large portfolio with different product categories. (AmazonGeniuscom, 2012) It is obvious that 20 years of experience in the market, good decisions and strategic innovations make them one of the most powerful player on the market.

Market position: According to Alexa.com Amazon is ranked as the 10th most popular company in a global rank and the 5th most popular in the United States. More than 11million people visit the Amazon.com per day and spend more than 9 minutes on the page per person. (Alexa, 2014)
Initially, Amazon was available only in the American market and later on, they expanded their presence and started providing web services in European countries like Austria, France, Italy, Germany and the United Kingdom respectively with the websites Amazon.at, Amazon.fr and Amazon.it, Amazon.de and Amazon.co.uk. (Amazon, 2014) In 2008 they achieved their goal, to be a global brand spread worldwide. And now days the company is present in 160 countries with over 50 million of customers (Melo, 2013) and the revenues registered recently from their sales are round $17 billion. (Modaynote, 2014)

Business Portfolio: At the beginning, it was only an online bookstore, nevertheless now people can buy BluRays, DVDs, VHSs, CDs, video and MP3 downloads-streaming, software, electronics, furniture, toys, video games, food, jewellery and more. Most of the well-known brands are available on the website and shipment network is really huge.The company is not only an electronic market, but also produces revolutionary products, which has shaped the history of technology, such as Game studios, Instant Video, Appstore, LoveFilm, Kindle, The Book Depository etc.

Revenue development: Jeff Bezos, the CEO of the company, in 1994, has figured out a new business that nobody had thought before. In 1994 many people were skeptic and thought that the internet would not give money in the short term, but the results has shown to be a very profitable business in the long run. To spread the news of his new business, Jeff Bezos rather than hire publicists and spend extra amounts on ads in traditional media,...

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