Programme : MSc International Business Module ...

Programme : MSc International Business
Module : Strategic Management
Assignment title : Amazon.com
Tutor : Richard lie
My name : Chunchu. Krishna Chaitanya
Reg number : @00230735
Company overview
Amazon.com came into existence with the aim of transforming physical retailing to online retailing i.e. world wide web (www).Though the number of customers who have access to internet technology are limited at the time of his organisation launch , he predicted rapid growth of customers.
The main idea behind this is to grab attention of customers globally without setting up big industries or plants overseas. The only weapon is technology. As the technology can grow as fast as anything else, Bezos has a foresight that his company will be a role model for entire retailing industry. The basic investment of Amazon.com is technology.
History
Jeff Bezos is the founder of Amazon.com. The head quarters was set up in Seattle, Washington, USA in July 1995.
Jeff Bezos is a graduate from Princeton with the background of electrical and computer science, emerged as the youngest senior vice president of D.E Shaw, who is running a Wall Street hedge fund.
He has lot of interest and foresight in technology and World Wide Web (www).At that time he predicted that www is growing very faster at 350 percent monthly.
In June 1994, Bezos quit his job. He has done lot of research on online retailing which can grow faster and also user friendly to customers.
In 1995 with his wife and three friends he started raising money and at the same time maintained good relations with shippers and wholesalers. Also he developed software which enables customers to choose and purchase different types of goods online. He launched his online store in July 1995.
The brand name is very important for any organisation. Amazon is the longest river in the world. So because of that he put the name as amazon.com. Now Amazon.com is the Everest in online retailing.
As per our research location is very important for physical retailing. But for online retailing technology is the heart. He chose Seattle to start his operation because of book distributor Ingram which obviously provides approximately 60 per cent of Amazon.com’s books.
Based on Forrester research it is clear that the total number of goods purchased on web exceeded US $ 43 billion in 1998 and is going to increase to US $ 1.3 trillion in 2003. On the other hand as per Media Metrix approximately 16% of internet users visited Amazon.com in 1998.
In 1999, Bezos awarded with man of the year by Time magazine for his company’s success in popularising online shopping.
In 2008 the numbers of visitors of Amazon.com are nearly 615 million which is approximately double than that of wal-mart.com by the survey of compete.com.
Amazon.com’s Strategy
According to porters five forces theory, a good strategy of any organisation, which is a ...