CHARACTERISTICS AND BACKGROUNDS OF AMAZON’S BUSINESS STRATEGY

Amazon is the leading e-commerce leader and has grown significantly since its inception as an online bookstore as it sought to penetrate other areas such as logistics, consumer technology, and cloud computing. This has made its strategy more successftil and differentiated in the field of electronic commerce and experience worthy of study, especially the optimization of design controls and the degree of adoption of BI and the exploitation of digital innovation outputs.

THE EMERGENCE OF AMAZON

Amazon was founded in 1994 by Jeffrey Preston Bezos and was dubbed Cadabra. It started operations at a time when the Internet was growing, and the Internet was considered a potential business medium.

By understanding this trend, Bezos came up with the idea of selling books online. He felt that books were the best products sold online, where millions of titles were printed. An e-commerce site can incorporate and sell more books than traditional libraries.

According to Bezos, the latter cannot have more than 200,000 books at a time and aim to build a huge online library that will be larger than any physical library in the world.

Amazon was initially funded with money borrowed by Bezos from fr iends and relatives. Bezos and his wife, along with some of the staff, build and test your website for more than a year before launching it. Amazon was finally opened to customers in 1995.

Like many other technology giants, it was initially operated by the Bellevue garage in Washington and expanded with the help of Dot-Com. At the time Amazon started operations, the retail market was veiy fragmented, and there was no major player except Barnes and Noble, one-tenth of the company’s total market share but does not exist online.

Amazon got the first engine advantage and faced very little competition in the early days of its operation. Since starting its business, Bezos has focused on customers and believe that customer loyalty is the key to penetrating the market and increasing sales. Amazon began shipping goods to all 50 states in the USA and 45 other foreign countries within a month of launch, and all this was still working in the Bezos garage.

Amazon’s popularity has grown through an oral talk where customers have recommended it to others. Within four months of its launch, Amazon sold more than 100 books a day [12].

Therefore, Amazon is a multinational e-commerce company located in Seattle, North America, and is a web giant, grouped under the acronym GAFAM along with Google, Apple, Facebook, and Microsoft. The company bears the slogan ‘Work Hard, Have Fun, Make History’ [13].

Amazon.com is the world’s largest online retailer, trading in furniture, clothing, electronics, music, and many other commodities, Amazon’s original specialty was selling books, but it diversified into selling other products, first by expanding cultural products available for purchase, and then through the gradual availability of products of all kinds.

Currently, even food products can be ordered via Amazon, and the company was listed on the Nasdaq Stock Exchange in May 1997 [14].

In 2018, the company had a market capitalization of SI,000 billion, a turnover of S177.9 billion (2017), its net profit exceeded S2.37 billion (2016), and the company employs 631,300 people worldwide (2018). In addition to the original US site approved in 1995, new sites are available in many countries.

 
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