AMAZON COMPANY

INTAF ANSWARI
Roll no: 5
 Amazon Company
Jeffrey P. Bezos founded Amazon in 1994. Jeff Bezos incorporated the company in July
1994. The name Amazon was founded soon after because the Amazon River is the
largest in the world, and the letter “A” would help the company to show up at the top of
alphabetical lists. Moreover, the site went online as Amazon.com in 1995. The name
Amazon was founded soon after because the Amazon River is the largest in the world,
and the letter “A” would help the company to show up at the top of alphabetical lists.
Amazon.com, Inc. is an American multinational conglomerate technology company
based in Seattle, with 840,000 employees. It focuses on e-commerce, cloud computing,
digital streaming, and artificial intelligence. It is considered one of the Big Four
technology companies, along with Google, Apple, and Facebook. It has been referred to
as "one of the most influential economic and cultural forces in the world."
Amazon is known for its disruption of well-established industries through technological
innovation and mass scale. It is the world's largest online marketplace, AI assistant
provider, and cloud computing platform as measured by revenue and market
capitalization. Amazon is the largest Internet Company by revenue in the world. It is the
second largest private employer in the United States and one of the world's most
valuable companies.
Jeff Bezos in Bellevue, Washington, founded Amazon on July 5, 1994. The company
started as an online marketplace for books but expanded to sell electronics, software,
video games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon surpassed
Walmart as the most valuable retailer in the United States by market capitalization. In
2017, Amazon acquired Whole Foods Market for US$13.4 billion, substantially
increasing Amazon's footprint as a physical retailer. In 2018, Bezos announced that its
two-day delivery service, Amazon Prime, had surpassed 100 million subscribers
worldwide.
Product/services: Amazon distributes downloads and streaming of video, music, and
audiobooks through its Prime Video, Amazon Music, Twitch, and Audible subsidiaries.
Amazon also has a publishing arm, Amazon Publishing, a film and television studio,
Amazon Studios, and a cloud-computing subsidiary, Amazon Web Services. It produces
consumer electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo
devices. In addition, Amazon acquisitions include Ring, Twitch, Whole Foods Market,
and IMDb. Among various controversies, the company has been criticized for
technological surveillance overreach, a hyper-competitive and demanding work culture,
tax avoidance, and anti-competitive practices.
E-Commerce: The key elements in e-commerce include attracting customers by offering
the lowest price in the market on popular products, and to additionally make money on
less popular products. Through also focusing on the consumer through convenience
and unrivalled customer service, this creates customer value.
Cloud Computing Services: As a first mover within this new market, Amazon.com Inc.
offers companies an easier and more convenient way to sell their products online.
Through doing this, Amazon gains insight into these companies utilizing their services,
and subsequently gains revenue from their performance.
Personal Media Players: This sector of products makes Amazon an original equipment
manufacturer (OEM) which gives them an opportunity to continue future market
exploitation. This also combines the current products like Amazon Prime, which creates
synergies and value for the customer.
Digital Media Streaming: Amazon is able to compete with other large companies such
as Netflix and YouTube, giving Amazon a greater chance to grow when operating within
larger and more valuable markets. This is also used to create synergies between all of
Amazon’s different products, and through this they are able to differentiate themselves
from other competitors. Amazon
The company involved in IB activities in the following ways
Over the years, Amazon.com Inc. has disrupted the online retail industry and
transformed itself from an e-commerce player to a powerful digital media platform
focused on growth and innovation. It has constantly reinvented its business model and
found new ways to create value for its customers. According to analysts, Amazon’s
business model was innovative because it combined the company’s online retail
expertise with its ability to understand the needs of its customers. It makes sense for
them to stay in their most dominant markets which are e-commerce, cloud-based
computing services and personal media devices. Amazon Web Service was a great
success for the company and caters to a fast-growing consumer group which is
foreseeable to grow infinitely as technology advances. Amazon has invested a large
sum of money into their technology to keep all of their services running efficiently.
It makes good strategic sense for Amazon to be a competitor in all of its current
segments. In the strong rival competition, Amazon is taking an offensive move to
improve its market position and performance. With its powerful resources and
capabilities, Amazon is continuously building its sustainable competitive advantage,
which includes low price, vast selection, fast, and reliable delivery, convenience and
customer service. Amazon has achieved this through designing its activities in such a
way that not only complement each other but also reinforce one another, thus reducing
costs and increasing differentiation.
These reinforcing activities cut across many functional areas and strengthen the whole
system. In order to compete in the market, Amazon must continuously create new
market segments in multi-faceted business offerings, from e-commerce to IT services
and media to draw sales and market share. Considering the app development and the
increasing number of people using smartphones and other devices, cloud-computing
service is more likely to attribute to Amazon’s future growth and profitability than e-
commerce and personal media players. Amazon Web Service started offering cloud-
computing services approximately 16 years ago, long before any of its competitors did,
thus this first-mover approach provided time to experiment, gain experiences and
improve their services over the years. Furthermore, Amazon Web Service offers more
than just reliable data management; it also leases its servers on an on-demand basis for
other users or companies where it offers cheaper costs and more convenience than
doing business in traditional infrastructure. This in-turn will help to increase consumers
in their cloud computing service.
The Multi-Domestic Strategy of the Company in various countries
Amazon Company is committed to operate and conduct all its business activities in a
socially and environmentally responsible manner. Amazon Company understands the
importance of good relationship with all its stakeholders, employees, customers,
partners and the community at large and prioritizes its initiatives towards sustainable
development focusing on areas within its local spheres of influence.
 Creating Value for the Customer: Create and add value to the products and
services offered by the organization and provide the best services to our
customers in everything we do.
 Creating Value for the Nation: Contribute to the up liftmen of the nation's
economy, and bring parity between national infrastructural and entrepreneurial
capability with other developing nations. Create employment opportunity for as
many people in the world.
 Management based on Esteem for the Human/Dignity: Management based on
human dignity and a strong sense of value of human assets is what Amazon
strives to practice. This is what we consider as a major building block of our
organization and business.
The mission of Amazon Company are;
“We strive to offer our customers the lowest possible prices, the best available
selection, and the utmost convenience”
According to survey on Comparable.com, 68% of people employed at amazon is
motivated by the company’s mission statement. Besides being compensated for their
labor, the “company mission” is the most important thing about their work for 8% of
employees at Amazon. 13% of these employees, continues to work for Amazon
because of the organization mission statement. Additionally, 22% of employees at
Amazon has felt more loyal to the company’s mission and vision statement. This survey
shows, that the Mission set by the company is very vital in keeping employee in line with
working todays achieving the company’s goals
Amazon Company affected by following three environmental forces
Domestic: Amazon.com, Inc. is an American multinational conglomerate technology
company based in Seattle, with 840,000 employees. It focuses on e-commerce, cloud
computing, digital streaming, and artificial intelligence. It is considered one of the Big
Four technology companies, along with Google, Apple, and Facebook. It has been
referred to as "one of the most influential economic and cultural forces in the world."

Foreign: Quality is never an accident. It is always the result of high intention, sincere
effort, intelligent direction and skillful execution. It represents the wise choice of many
alternatives and as we entered the 21st century, the gleaming horizon awaits our vision
towards globalization. So meeting high level of quality to satisfy foreign consumer is
also challengeable.
International: Setting up a business in any new country or place calls for a lot of risk and
research. Understanding the political, economic and social conditioning of the place is
extremely important. Amazon company has been running their businesses in different
countries with great success in spite of certain difficulties. While entering into
international and after it entered, it faces many opportunities as well as challenges.