Amazon is an American multinational corporation that began as a small online bookstore, founded by Jeff Bezos in 1994. From its humble beginnings as a garage in Bellevue, Washington, to its conglomerate status, Amazon has changed how we buy and sell goods and services. While its early years were filled with challenges, Amazon’s growth has resulted in a thriving business and global empire.
Amazon’s e-reader revolutionized how consumers acquired books
In the early 2000s, Amazon’s e-reader was released and immediately changed how people acquired books. It allowed readers to carry thousands of books on their devices, making it the perfect travel companion. The Kindle also allowed users to make annotations and share them with others on the Amazon network.
In response to the e-reader’s popularity, publishers began to partner with Amazon. As a result, these companies agreed to lower prices and create a healthier book market. However, in 2011, Amazon halted the sale of digital books from its iOS app. Because of this, the company focused on developing its browser-based e-reader. It also rolled out an official Android app.
The Kindle was initially expensive. At the time, the list price of hardcover was around $26. Many cost more. Unsurprisingly, Amazon needed to provide an incentive to convince value-conscious consumers to purchase the device. However, the original Kindle model costs $399.
Its cloud computing infrastructure
Cloud computing is a great way to reduce the costs associated with running your IT infrastructure. Rather than maintaining and upgrading your servers, you can rent resources from Amazon. Many large companies are using Amazon’s cloud to run their business applications. They save money this way by using just the services they need and only paying for what they use.
The cloud-computing infrastructure offered by Amazon is designed to make it easy to deploy and manage applications. In addition, it provides easy-to-use development tools for your application development needs, and you only pay for the time your applications are active.
Its shipping empire
Amazon’s shipping empire is on a collision course with UPS and FedEx. The retail giant has long relied on these companies for shipping packages, but since its inception, it has expanded its network to rival its services. The consumer business head of Amazon said the company expects to overtake FedEx in U.S. deliveries early next year and surpass it by 2021. The future of delivery services in the United States is a game of logistics, and Amazon has become a key player in this industry.
In recent years, Amazon has been spending billions of dollars on shipping. The company expects to spend $61 billion on shipping in 2020, compared with $38 billion in 2019. In 2018, it shipped 47% of packages itself. By 2021, Amazon plans to have 30 fulfillment-and-delivery centers in the U.S. and aims to place them near large markets.
Amazon is on a buying spree. This may be good for the company’s growth, but it has also drawn the attention of the Federal Trade Commission. The FTC’s chair, Lina Khan, has publicly criticized the company for its acquisitions. Amazon recently announced its intentions to acquire concierge health care service OneMedical, robotics manufacturer iRobot, and Belgian warehouse robotics maker Cloostermans. However, the OneMedical deal stalled until the FTC got more information from Amazon.
Amazon’s acquisitions have come at the cost of billions of dollars. For example, it paid $13.7 billion to Whole Foods Market. This was a massive acquisition for the company and a part of its strategy to reach every home. Other notable acquisitions include Kiva Systems, Twitch, and Zappos. All three companies were purchased for more than a billion dollars.
Its customer-first policies
Amazon’s customer-first policies have allowed it to build a competitive advantage by placing customers at the center of everything it does. This principle fosters good relationships with consumers and high productivity throughout the business. Amazon CEO Jeff Bezos shares this customer obsession. He says, “Our company is built to serve the needs of customers” (p. 79).
The customer-first policy applies to all levels of the company. Every employee is responsible for providing superior customer service. Amazon is constantly modifying its products and services to serve its customers better. It also pays attention to the competition and looks for ways to improve its services.