Amazon Uses New Technology to Reinvent Old Business Model
Thompson, 2013 states Amazon.com is the largest bookstore in the history of the world, the world’s largest online retailer, the largest Web-hosting company in the world, the most serious competitor to Netflix in streaming video, the fourth-most-popular tablet maker, and a sprawling international network of fulfillment centers for merchants around the world. (para 4)
This paper explores the technology that has made these achievements possible.
Sears & Roebuck Did it First
In the 1890’s, Sears & Roebuck revolutionized the way Americans shop. Until that time, consumers had to visit a store to make purchases. When Sears & Roebuck introduced their catalog, they offered a new option. Consumers could make purchases from their home and the mail would deliver it to them. Sears & Roebuck became the ultimate general store, selling everything from clothing and jewelry to barns and houses. In the early 1900’s, people began moving from farms into cities and shopping changed again. With proximity it became easy to visit a store. Sears & Roebuck answered the demand by opening new stores around the company and maintained a large following for many years.
The advent of internet technology has once again changed the way consumers shop and Amazon.com has been at the forefront of that revolution. Shopping malls have lost their appeal for many consumers. People prefer to shop in the comfort of their homes, comparing prices and options. Amazon.com has made it simple and is able to quickly and seamlessly fill orders and deliver products to your door. They seem to be striving to be the go-to “one-stop-shopping” destination for consumers worldwide.
What technology makes this possible?
Amazon.com opened in 1995. Founder Jeff Bezos created it to take advantage of what he believed would be huge growth in internet shopping. The widescale availability of home computers and internet service at that time made it possible.
Amazon.com developed large “fulfillment centers” where orders are filled and shipped. A box is labeled with the order. A conveyor belt takes it to an employee who takes the box around the warehouse and fills it with the ordered items. Another conveyor belt takes the sealed box out to a pickup for shipping. Computerized...