...Amazon.com’s E-Business Model Pros and Cons of Amazon’s Growth and Diversification of Business and Specialization Amazon.com is a digital shop, open around the clock. Consumers are able to access amazon.com literally at any moment, on any given day, due to its real-time optimization. Amazon provides unlimited reach to the worldwide market, with no substantial boundaries. Amazon has unlimited inventory and is just as diverse in categories which helps promote a speedy inventory turnover. Their focus on low prices, a diverse selection and customer convenience has proven to be successful. Amazon also has endured one of the fastest growths in the internet’s history reaching almost 3 billion dollar in sales within the first five years. Amazon is considered an ecommerce giant and has over 30, 000 thousand employees and brings in more than 30 million in revenues annually, topping Barnes & Nobles and Borders. Amazon owns many companies consumers use every day not knowing they are owned by such. Zappos, fabric.com, pets.com and audible.com are each owned by Amazon. Furthermore, entities of Amazon often used are AmazonBasics: amazon branded electronic products, AmazonFresh: sells and deliveries groceries, AmazonStudios: online social movie studio and AmazonWarehouseDeals: offers discounts on refurbished products. Amazon also facilitates many other businesses, such as providing web services for companies like: Netflix, Etsy, Papaya and Reddit, to name a few. So not only is Amazon...
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...company has been making great business progresses. It has expanded into other countries. This is not usually the case with every other business that tries to penetrate foreign markets however, the company sells versatile products that can easy sold and delivered anywhere on the planet. Amazon reigns supreme as the top dog of online retail and is the only company in this top tier that specializes in ECommerce exclusively. Amazon accounts for 1/3 of US ECommerce sales. They brought in a whopping $34 billion in web sales last year. That’s over three times more than Staples’ web sales and over six times more than Apple’s. Although many other companies have adopted the approach employed by Amazon.com, the company is far much established than any of its competitors around the world. The fact the company works with developers based in different countries, still gives the company a lead over its competitors. Aside from Amazon’s current domination in the ECommerce market, what’s surprising is how quickly Amazon has reached this point, and their continued expected growth rates. With ECommerce as a whole growing at around 11-13%, Amazon is experiencing growth at about 3 times the market rate. The e-retailer is paying close attention to business-to-business (B2B) e-commerce, offering new sales vehicles for marketplace sellers and considering new...
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...An e-Business Analysis of Amazon Timothy Harpe BUS 352 Ins. Victor Olufeso December 15, 2013 Becoming one of the most powerful E-tailers on the planet is Amazon.com; in a matter of 18 years becoming one of the most powerful E-tailers in the world, while not producing a product. Amazon.com is an American e-commerce company based in Seattle, Washington. Founded in 1994, by Jeff Bezos started a business out of his garage in Bellevue, Washington, which he incorporated under the name Cadabra.com. Then in 1995, Cadabra became Amazon.com, continuing as an online bookstore before diversifying its product lines by adding VHSs, DVDs, music CDs, MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and more to his portfolio of items to sell. “Amazon also issued guidance for the fourth quarter of 2013, saying that net sales are expected to be between $23.5 billion and $26.5 billion, representing growth of 10% to 25% over the fourth quarter of 2012,” (McGrath, 2013) with no end in sight. Amazon has a business model that is based on the buy, sale and transfer or shipment of goods to anywhere in the world, as of 2013 it is working well. With the explosion of the World Wide Web, or internet, Jeff Bezos capitalized on the book buying and reading industry, with aggressive ideas of improving the way to deliver this product. Although Amazon does not buy a lot of products, rather they allow the seller store their product in the Amazon warehouse hubs...
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...simplest form ecommerce is the buying and selling of products and services by businesses and consumers over the Internet. People use the term "ecommerce" to describe encrypted payments on the Internet. Sometimes these transactions include the real-time transfer of funds from buyer to seller and sometimes this is handled manually through an eft-pos terminal once a secure order is received by the merchant. Internet sales are increasing rapidly as consumers take advantage of lower prices offer by wholesalers retailing their products. This trend is set to strengthen as web sites address consumer security and privacy concerns. There is several ways of looking at e-commerce • Communication perspective • From a business perspective • Interface perspective • From online perspective • Structural perspective • Market perspective Beginning & Future of eCommerce eCommerce basically began (although debated) in 1994 when Jeff Bezos started Amazon.com out of his own garage. Well known eCommerce stores include sites like eBay, Dell, Walmart and many more. Since 1994, businesses of all shapes and sizes have began launching or expanding their Online presence. At any given time, there are approximately 8 million consumers worldwide that actively shop and buy through Web based stores or retailers (nearly one tenth of our world population). Online studies have claimed that online retail revenues will surpass the quarter-trillion-dollar mark by 2011. eCommerce Site Features ...
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...Header Logo HOMEBTFOUR PORTOFOLIOOUR SERVICESNEWSMEET THE TEAMCLIENTSCONTACTGAMIFICATIONΕλληνικά MARKETING STRATEGIES OF AMAZON.COM. amazon Marketing Strategies of Amazon.com Amazon.com is obsessed with a fervor to serve consumer and shareholder alike. Since its inception over fifteen years ago, Amazon.com has steadily grown from a burgeoning “dot-com” corporation into a multinational monster, a king in the domain of internet retail. It targets two goals: the satisfaction of a customer and efficient corporate growth. Its marketing strategies are near-legendary, and budding business should take a page – or several chapters – from Amazon.com’s proven marketing manual. AMAZON.COM HISTORY Jeff Bezos, Amazon.com founder and CEO, dreamed about books. In 1994, he created Amazon.com, Inc., which he labeled as “Earth’s Biggest Bookstore.” The ecommerce company went online in 1995 and soon expanded into other media, including DVDs, VHS, CDs, MP3s, and eventually a wide range of other products, including toys, electronics, furniture and apparel. As such, the tagline soon changed to “Earth’s Largest Selection.” But books were only the beginning of Bezo’s up-and-coming enterprise. Amazon.com went public in 1997. In the first shareholder letter, Bezos penned the fundamental foundation for Amazon.com’s success: “Start with customers, and work backwards … Listen to customers, but don’t just listen to customers – also invent on their behalf … Obsess over customers.” This policy...
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...Amazon.com Tax Avoidance Business Strategy, How they did it, And how it affects me. Introduction: Amazon and Tax Avoidance Part I: Amazon Part II: Taxes in the U.S. Part III: The IRS/Penalty for Tax Avoidance Part IV: Amazon and Tax Avoidance Part V: Amazon in Europe Part VI: Amazon in 2014 Part VII: How does it affect me? Part VIII: Conclusion Introduction: The topic I choose to write about is how Amazon.com website avoided collecting sales taxes in the U.S. for nearly it whole existences. I’m going to introduce amazon and what the company is about and the role they played as more then successful online retailer. Then introduce the topic of taxes and state taxes, sales tax, and the importance collecting and paying taxes, and the benefits the country and its residents get for paying such taxes. The amazon company will then be analyze and in operating structure and design and learn how they avoided paying taxes in their home country and how they brought their operation over seas and did the same. And why this topic and subject matter is and should be severely important for future business owners and managers on business structuring operations. Part I: Amazon Amazon is the largest online retailer as of 2014. And how did they accomplish this? Jeff Bezo is the founder and amazon.com and it all started in his garage in the state Washington. Amazon first started off as an online bookstore and soon began to venture off to selling CD’s, DVD’s, and computer...
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...will explore the rise of a mega business empire, Amazon.com. From the beginning of just books sales to the current diversified online store and why it has gained world wide recognized by branching out to other sales items besides books. As CEO Bezos stated in their 2010 annual report, “ Amazon.com opened its virtual doors on the World Wide Web in July of 1995 and offers Earth’s Biggest Selection. We seek to be Earth’s most customer-centric company for three primary customer sets: consumers, sells and enterprises” (Bezos, 2010). It is apparent that CEO Bezos understood that customer service and listening to the consumer would separate them for the rest. This paper will also compare and contrast competitors in the book sale market, competitors such as Barnes and Noble ad Borders and what has separated Amazon.com from them. Has the diversification of Amazon.com helped them gained global recognition? Or has a solid understanding of the market and customer needs propelled them to where they are today? The Pros and Cons Amazon.com jumped into the market in 1995 with an effective business tactic of online book sales. Not only did the company launch an English version of the website, but they also launched a Chinese, French, German and Japanese version to gain a global audience quickly. Amazon also receives about 615 million visitors annually according to a survey by complete.com (History of Amazon). Some dare to believe that Amazon.com has the “ideal” business plan for success but...
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...Amazon E-Commerce Amazon.com has always sold goods out of its own warehouses. It started as a bookseller, pure and simple, and over the last decade has branched out into additional product areas and the third-party sales that now represent a good chunk of its revenue (some estimates put it at 25 percent). Both retailers and individual sellers utilize the Amazon.com platform to sell goods. Large retailers like Nordstrom, Land's End and Target use Amazon.com to sell their products in addition to selling them through their own Web sites. The sales go through Amazon.com and end up at Nordstrom.com, Land's End.com or Target.com for processing and order fulfilment. Amazon essentially leases space to these retailers, who use Amazon.com as a supplemental outlet for their online sales. Small sellers of used and new goods go to Amazon Marketplace, Amazon zShops or Amazon Auctions. At Marketplace, sellers offer goods at a fixed price, and at Auctions they sell their stuff to the highest bidder. Amazon zShops features only used goods at fixed prices. If an item listed on zShops, Marketplace or Auctions is also sold on the main Amazon.com, it appears in a box beside the Amazon.com item so buyers can see if someone else is selling the product for less in one of the other sales channels. Another sales channel called Amazon Advantage is a place where people can sell new books, music and movies directly from the Amazon warehouse instead of from their home or store. Sellers ship a number of...
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...Amazon.com Evolution Amazon starts as a book distributor that is currently competing with a number of Internet companies throughout the world. CEO, Jeff Bezos, has a vision of Amazon.com being a place where anything, can be located on the website. Amazon is gaining significant ground in its ambition to take over the entire e-commerce e-tailing sector, according to the recent successes. Since 1996, the company has taken the lead, introducing venues for electronic shopping (Pearlson, Saunders 2005). Amazon.com is the largest online retailers in the world, Amazon develops it core competency by striving with the competition. In order for Amazon.com to remain the leading online retail, it is essential to expand the vision of the company. As the customers grow, the customer’s needs expand and the availability of product and services. To augment the number the number of shoppers that use its site, Amazon.com created a program, which awards other sites a percentage of a sale when customers are link to them from another site to make a suggested purchase. Competition is increasing with other websites becoming the favored first stop on the Web. Google has taken the place of such retail sites as Amazon, the resource used by a number of people to start their shopping. Amazon services thousands of companies. Whether Amazon services will contribute to the company’s bottom line is still unknown. Amazon is in direct competition with Google to create a Web-based, worldwide computing platform...
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...to use website. Furthermore, Amazon’s brand personality is that they are a fast, friendly, innovative company that can be trusted. All of these traits make Amazon the website where most customers choose to do their shopping. Also, Amazon makes their customers their top priority and successfully appeals to their values, knowledge, and interests. Amazon’s two loyalty programs of Amazon Prime and Amazon Visa Rewards Card provide many benefits to their members and make shopping on their website quick and easy. Overall, Amazon has developed into one of the most important and successful companies in the world today. Background image of page 4 Porter’s Five Forces analysis In order to get a broader picture of the competitive structure of Amazon.com e-business the author use Porter’s five forces model. According to Porter awareness of these five factors allow a company to gain a position which is more profitable and less vulnerable to attack. Threat of New Entrants. Most of the industries in which Amazon operates possess low barriers to entry. Except for modest capital requirements, there are no specific skills or permits required...
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...THE EMERGENCE OF TECHNOLOGY AND ITS ADVANTAGE TO BEST BUY COMPANY INC. Course project on; Managerial applications of information technology -IS535 Devry University, Keller graduate school of management. June 2013 Table of Contents Abstract Company Background Discussion of Business problem High Level Solution Approach Business and Technical Approach Benefits of Solving the Problem Conclusion and Recommendations References THE EMERGENCE OF TECHNOLOGY AND ITS ADVANTAGE TO BEST BUY COMPANY INC Abstract Many companies have been struggling recently due to the shift and the constant increase of online marketing and sales. The internet has created an entire new market. This has posed serious problems to Best Buy company Inc., as it profit and revenue seems to be on the down turn .In 2013 fiscal second quarter, Domestic comparable stores sales saw a 1.6 percent...
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...decisions where we see a sufficient probability of gaining market leadership advantages. Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case. — Jeff Bezos, 1997 Letter to Shareholders As Fishmonger Ryan Reese skillfully filleted a fresh rainbow trout at Seattle’s Pike Place Market one morning in late 2012, the usual mix of tourists and locals gathered to admire his prowess. The iconic downtown market’s appealing array of fresh and specialty foods drew daily crowds eager to admire its vendors' showmanship and buy their wares. But the trout wasn't for any of them. Ryan's customer was miles away on Mercer Island. Within hours AmazonFresh, the grocery subsidiary of Amazon.com, would deliver the fish, which she'd ordered online, right to her doorstep.1 AmazonFresh had spent five years testing and refining its business model since its launch in August 2007. The challenges were numerous; no other online grocer had yet succeeded on a national scale. Amazon typically allowed new businesses only a short time to achieve profitability before shutting down failed attempts. But CEO Jeff Bezos and his management team also made allowances for enterprises they believed would succeed in the long term. Known for being “stubborn on vision and flexible on details,” Amazon was also famously resistant to Wall Street’s quarterly earnings pressures.2 Grocery was an especially attractive sector because it was both the largest...
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...Table of Contents Page | Title | 2 -4 | 1.0 Positioning in Relation to Porters GenericStrategies * Strategic Models * Stakeholder Analysis.....continued on page 5 | 5 | Value Chain Analysis | 6 | 2.0 Business & Corporate level strategy | 7&8 | 3.0 Alternate strategy * Critical reflection | 9 & 10 | Bibliography/Harvard referencing | 11 & 16 | Supporting Appendices | Total word count : 2725 Inc titles/subtitles. Amazon’s Strategic Positioning. 1.0 Introduction This assignment is to establish Amazon’s strategic positioning in Europe in correlation with value innovations that may have contributed to Amazon’s success from 1995 to 2012. About Amazon Amazon is an eCommerce business based in the U.S and was started back in 1995 selling books, CD’s and other media. However Amazon’s profits were only noted in 2002 and to this day have annual sales equal to or more than $40billion with a customer base of nearly 144 million in purchase accounts and over 2 million market seller accounts. In 1998 Amazon also extended their market to the UK with an agreed takeover of Bookpage.co.uk and has since managed to establish their second biggest and most successful market overseas. Value Innovations. Since reporting profits in 2002 Amazon has invested in innovations that add value to the customer, keeps interest and encourages ease of purchasing. Some innovations that have aided in the success of Amazon tend to allow ease of use...
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...the revenue, assets and market share like similar and larger companies such as Wal-Mart and Target they are without a doubt a very profitable and successful company. What Costco lacks in high margins, they make up for in being a highly efficient company boasting high asset and equity turnover while maintaining optimum liabilities and debt to equity ratios. Costco is a great company that is seeing profitable success due to their business model that prioritizes quality for both its customers and employees. However, emerging with the 21st century are new ways of doing business. Online companies like Amazon.com are quickly taking market share not just from Costco but also their biggest competitors: Wal-Mart and Target. In order to stay relevant, Costco will need to maintain their business growth in the coming years and also find ways to compete against online retail giants like Amazon.com. 1. Company Background Costco is a multi-billion dollar warehouse company that operates on a global scale. Consumers can frequent Costco to find merchandise including but not limited to groceries, electronics, furniture and home goods, pharmaceuticals and gasoline. Costco specializes in purchasing its merchandise wholesale and re-selling to consumers. Consumers who frequent the warehouse club are required to pay annual membership fees; a membership not only grant a consumer the ability to purchase products within the store but is also required for him/her to enter inside. The benefit of a membership...
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...Flipkart-The Online Megastore Company was co-founded in 2007 by Sachin Bansal and Binny Bansal who are alumni of IIT-Delhi after they left amazon.com which was then the largest online retail hub. Legally, Flipkart is not an Indian company since it is registered in Singapore and majority of its shareholders are foreigners. Because foreign companies are not allowed to do multi-brand e-retailing in India, Flipkart sells goods in India through a company called WS Retail. Other third-party sellers or companies can also sell goods through the Flipkart platform. Initially started with online price comparison only to become bigger and bigger and moved to online selling of books (e-book) but later expanded it to other electronic goods and daily household appliances and equipments. Its initial investment was ₹4 lakhs out which ₹2 lakhs was just to buy computers and furnitures for their offices and all funds were acquired through venture capitalists like Accel India,Tiger Global,etc. This online retail venture currently employs over 4500 employees and has 7 warehouses throughout the country where on an average,20 products are sold per minute. The logistics firm of the company are valued around ₹10,000 Crores And had a massive revenue of around 1200 Crores (FY 2012-13) and plans to reach 2500 Crores this year. Flipkart's reported sales were ₹40 million in Financial Year 2008–2009 and ever since then the company's sales turnover has increased infinitely to the extent that the sales projection...
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