A

Contemporary issues report on

TECHNICAL ADVANCEMENT
By
Sabreen fatima
Roll no. –23/946,
Submitted to
Rajasthan Technical University
In partial fulfilment of the requirement
For the award of the degree of
Master of Business Administration
Under the guidance of
Dr. Garima Jain & Dr. Ankita Birla
Faculty of M.B.A. Program

University Department
Rajasthan Technical University
Session 2023-25

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Table of Contents

S. No Chapters Page No.

1 Introduction 3-6
1.1 History
1.2 Logo 3
1.3 Important Person 4-5
1.4 Mission and Vision 5-6
2 Market Share and Status 7-8
2.1 Competitors
2.2 Products Offered 7
8
3 SWOT Analysis 9-10
4 FinancialStatus 11-13
4.1 Market Share
4.2 Statistics 12
4.3 Share Holding Pattern 12
13-14
5 Conclusion 14

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INTRODUCTION
 Amazon is an American multinational company focusing on e-commerce, cloud
computing, online advertising, digital streaming and artificial intelligence.
 It was founded on July 5,1994 by Jeff Bozos.
 It’s Headquarter is in Seattle, Washington, US.
 In India it’s headquarter is located in Hyderabad.
 It predominantly began as online book seller.
 Amazon is a part of the “e-commerce” Industry.
 The industry has grown about 10% or more each year for the past 15 years.
 In the recent years, online shopping has become so easy with so many devices such as
Mobile phones, Tablets, Laptops.

 Amazon is seen as being one of the world’s largest online retailer.

1.1 HISTORY
Amazon started as an online book store later diversifying to sell DVDs, CDs, MP3 download/
streaming, software Video games, electronics etc.

The company also produces consumers electronics notably, kindle e reader, fire tablet, fire
TV and echo.

 1995: Started off as a online Bookstore.

 1997: Started selling shares.
 1999: Introduced Toys& Electronics.
 2000: New Logo to showcase competitive advantage.
 2001: First Profit of 5 Million dollars.
 2005: Introduced Amazon Prime.
 2006: Launched Amazon Fresh in Seattle.
 2007: Launched Amazon Web services.
 2007: Released the Kindle.
 2011: Released Kindle Fire.

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  2013: Announced Prime Air drone delivery service.
 2014: Introduced Amazon Echo.

1.2 LOGO

The Amazon logo was created to represent the message that it sells everything from a to z
(arrow connects the two letters) and also represent the smile that Amazon customer would
experience by shopping on its website.

1.3 IMPORTANT PERSONS

MR JEFF BEZOZ MR ANDY JASSY MR BRAIN T. OLSAVSKY

Founder and executive President, CEO Senior vice president
chairman and Director

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Jeff Bezoz Born in Albuquerque and raised in Houston and Miami, Bezos graduated
from Princeton University in 1986 with degrees in electricalengineering and computer
science. He worked on Wall Street in a variety of related fields from 1986 to early 1994.
Bezos founded Amazon in mid- 1994 on a road trip from New York City to Seattle. The
company began as an online bookstore and has since expanded to a variety of other e-
commerce products and services, including video and audio streaming, cloud computing,
and artificial intelligence. It is the world's largest online sales company, the largest Internet
company by revenue, and the largest provider of virtual assistants and cloud infrastructure
services through its Amazon Web Services branch.

Andy Jassy joined Amazon as a marketing manager in 1999with several other Harvard MBA
colleagues.In 2003, he and Jeff Bezos came up with the idea to create the cloud
computing platform that became known as Amazon Web Services, which launched in
2006. Jassy headed it and its team of 57 people

Mr. OLSAVSKYjoined Amazon.com in April 2002. As CFO of Amazon.com, he oversees the

company's overall financial activities, including controllership, tax, treasury, analysis,
investor relations, internal audit and financial operations. Prior to becoming Senior Vice
President and CFO in June 2015, he served as Vice President, Finance and CFO for the
Global Consumer Business. In his role as Vice President, Finance and CFO for the Global
Consumer Business, Mr. Olsavsky had oversight and responsibility for the finance team
supporting Amazon.com

1.3 MISSION AND VISION

The mission statement of an organization highlights the short-term goals. These are
objectives that are clearly measurable and can be achieved by utilizing the current resources
of the company. The mission statement can also be considered as the strategic compass that
keep the organization in the right path. It ensures that all the employees are clearly aware of
the directions in which the company is heading which is also reflected in their own daily
activities.

In case of Amazon, the mission statement of the company is, “to continually raise the bar of
the customer experience by using the internet and technology to help consumers find,
discover and buy anything, and empower business and content creators to maximize their
success.”

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The mission statement of company also highlights that Amazon “empower business.” It
should be noted that the company not only wants to become the best e-commerce platform
customers, but it also wants to become the best online marketplace for empowering the
business of other third-party sellers. The firm allows third party seller to sell their own
products to the massive customer base of Amazon. This is a result brings thousands of sellers
close to their potential customers through the Amazon platform. Thus, the mission of Amazon
is to improve customer experiment in every way possible and to bring long term development
in the industry.

The vision statement of a company refers to the long- term goals, that the company wants to
achieve in the future. These are typically not as specific as the mission statement and often
present a very crude idea of what the company wants to achieve. In case of Amazon, the
vision statement of the company is:” to be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy online.”

The first thing that the company has mentioned in their vision statement is “to be earth’s most
customer centric company.” This highlights the long-standing commitment of Amazon
towards its customers. The company is not just focused on creating new products and
services, but it pays more attention on how those products and services can be beneficial to
the customers for creating value. The vision of the company is to maintains customer centric
approach of its business venture and to eventually become the most customer centric retailer
in the world.

Thus, the vision of the company is to become a one-stop destination for customers, to sell
every product possible under one roof and to give the customers the best possible experience.
It should be noted that Amazon is quite dedicated in pursuing its vision. In order further
improve customer experience, Amazon is investing heavily on new technologies, such as
drone-based delivery system. The company wants to shorten the delivery time to a matter of
minutes, thereby offering great value to the customers.

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MARKET SHARE AND STATUS

2.1 COMPETITORS
2.1.1 FLIPKART
Flipkart is one of India’s leading e-commerce platforms, founded in 2007 by Sachin Bansal
and Binny Bansal. In 2018, Walmart purchasedFlipkart, acknowledging it as India’s leading
domestic e-commerce platform. Similar to Walmart, Flipkart actively supports various Indian
brands, fostering customer loyalty. While it ranks second to Amazon, Flipkart still boasts a
massive 230 million monthly Indian visitors. Flipkart is a significance rival of Amazon, and
even hosts its own version of Prime days known as “Big Billion Days”. Currently, Flipkart is
offering enticing deals on popular smartphone brands such as Apple, Motorola, and Realme.

2.1.2 EBAY
Ebay is an American multinational e-commerce corporation founded in 1995 by Pierre
Omidyar. It started as an online auction platform called Auction Web. It’s first sale was a
broken laser pointer. The site quickly gained popularity, expanding beyond auctions to fixed
price sales and incorporating various categories of products. Over the years, eBay made
several acquisitions, including PayPal in 2002 (later spun off in 2015), Skype in 2005(later
sold), and StubHub in 2007 (later sold in 2020). It also faced challenges and controversies
related to fraud, counterfeit products, and changes in its fee structures

2.1.3 WALMART
Walmart was founded in 1962 by Sam Walton in Rogers, Arkansas. It started as a small
discount retailer and expanded rapidly, emphasizing low prices and large selections. By the
1990s, Walmart became the world’s largest retailer. It’s known for its supercenters, offering
groceries and general merchandise. Walmart’s growth has sparked debates on its impact on

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local economies and labour practices. Over the years, it expanded globally, operating in
various countries, shaping retail history significantly.

2.1.4 NETFLIX
Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD rental-by-mail
service. Initially, it allowed customers to rent DVDs online and have them delivered via mail.
In 2007, Netflix introduced streaming, allowing subscribers to watch movies and TV shows
online. Over time, its original content, producing critically acclaimed series like “House of
Cards,” “Strangers Things,” and “The Crown.” By 2013, Netflix began creating exclusive
content, marking its transition from a content distributor to a major content producer. Its
subscribers base grew rapidly, making it one of the leading streaming platforms globally,
transforming how people consume entertainment.

2.1.5 ALIBABA
Alibaba, known for its low prices, is a popular choice for private-label sellers looking to start
their own Amazon business. It is estimated that by 2024, Alibaba will generate a staggering
$3.5 trillion in revenue according to a recent analysis, making it a strong competitor against
Amazon. Particularly in the Asian market, Alibaba offers remarkable competition and is one
of their top eCommerce platforms. Moreover, Alibaba has gained significant influence in the
Chinese market through the use of automated delivery drones, which help to reduce busy
road congestion.

2.2 Products Offered

1. Retail Products
 Electronics: Devices like Kindle, Echo, Fire tablets, and Amazon Basics electronics.
 Books: Physical books and e-books available through Kindle.
 Apparel: Clothing, shoes, and accessories.
 Home& Kitchen: Furniture, decor, kitchen appliances, and more.
 Toys &Games: Various toys and games for different age groups.

2. Amazon Prime Services

 Amazon Prime: Subscription service benefits like free and fast shipping, access to
Prime Video, Prime Music and more.
 Prime Video: Streaming service with a wide range of movies, TV shows, and original
content.

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  Prime Music: Music streaming service with a vast library of songs.

3. Amazon Web Services (AWS)

 Cloud Computing: Services like EC2, S3, and others for cloud storage, computing
power, and infrastructure.

4. Grocery and Household Items

 Amazon Fresh: Grocery delivery service offering a selection of fresh produce and
household items.

5. Digital Services
 Kindle: E-readers and e-books.
 Audible: Audiobook and spoken-word entertainment service.

6. Third-Party Marketplace
 Amazon Marketplace: Platform for third-party sellers to offer a wide variety of
products.

7. Amazon Devices
 Echo: Smart speakers with voice assistant capabilities.
 Fire TV: Streaming media players for TVs.

8. Subscription Services
 Subscribe & Save: Offers discounts on regularly scheduled deliveries of everyday
essentials.

SWOT ANALYSIS
Strengths:
1. Market Leadership: Amazon is a global e-commerce giant, dominating online retail with a
significant market share.
2. Diverse Product Portfolio: Beyond retail, Amazon has diversified into cloud computing
(AWS), streaming services (Prime Video), and smart devices (Echo).
3. Innovative Technology: Investments in cutting-edge technology, like AI and robotics,
enhance operational efficiency in warehouses and logistics.

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4. Customer Loyalty: Prime membership fosters customer loyalty through perks like free
shipping, streaming, and exclusive deals.

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Weaknesses:
1. Profit Margins: Historically, Amazon has operated on thin profit margins due to aggressive
pricing and heavy investments.
2. Dependency on Third-Party Sellers: A substantial portion of Amazon's revenue is
generated through third-party sellers, exposing the company to external risks.
3. Global Regulatory Challenges: Operating worldwide exposes Amazon to diverse
regulatory environments, leading to compliance challenges.

Opportunities:
1. International Expansion: Further expansion into emerging markets presents growth
opportunities for Amazon’s retail and cloud services.
2. Diversification: Expanding into new industries or enhancing existing services can mitigate
risks associated with a single market. 3. Technological Advancements: Investing in emerging
technologies like AI, block chain, and automation can drive innovation and efficiency.
4. Healthcare Industry Entry: The healthcare sector remains a potential area for Amazon to
disrupt through technology-driven solutions.

Threats:
1. Competition: Increasing competition from local and global players in e-commerce, cloud
services, and streaming poses a threat.
2. Regulatory Scrutiny: Governments scrutinizing Amazon's business practices may lead to
regulatory challenges impacting operations.
3. Supply Chain Disruptions :Vulnerability to supply chain disruptions, as evident during
global crises, can affect product availability and delivery.
4. Data Security Concerns: With increased reliance on data-driven technologies, any breach
could harm Amazon's reputation and trust.

This SWOT analysis provides a comprehensive overview of Amazon's internal strengths and
weaknesses, as well as external opportunities and threats, shaping its current business
landscape.

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FINANCIAL STATUS

Revenue: Amazon's revenue has been consistently growing over the years. In 2020, the
company reported net sales of approximately $386 billion, representing a significant increase
compared to the previous years.

Profitability: Amazon is known for reinvesting much of its revenue back into the business,
focusing on expansion and innovation. The company's profit margins are historically low
compared to its revenue, as it prioritizes market share and long-term growth.

Net Income: While Amazon's net income has fluctuated, it has generally shown positive
figures. The company's profitability can be impacted by various factors, including its
investment in new technologies, fulfilment centres, and acquisitions.

Amazon Web Services (AWS): AWS, Amazon's cloud computing division, has been a major
contributor to the company's profits. AWS provides cloud infrastructure services to
businesses, and its revenue has shown consistent growth.

International Operations: Amazon operates globally, and its international business contributes
a significant portion of its revenue. However, it's important to note that international
operations may face challenges, including regulatory differences and local market dynamics.

Investments: Amazon continually invests in various areas, such as technology, logistics, and
content creation. The company's investments in original content for Amazon Prime Video and
the acquisition of Whole Foods Market are examples of its diversified ventures.

Stock Performance: Amazon's stock (AMZN) is traded on the NASDAQ stock exchange. The
stock has historically performed well, with its value growing over the years. However, stock
prices are subject to market conditions and can fluctuate

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 3.1 MARKET SHARE

Amazon still holds the largest slice of the U.S. ecommerce pie. As of June 2022, it accounts

for 37.8 percent of the market followed by Wal-Mart, Apple, and eBay with 6.3 percent, 3.9

percent, and 3.5 percent, respectively. The huge margin is a strong indication that Amazon

will remain the leading online retailer in the United States in 2023 and beyond.

Similar web found a similar result when it ranked top ecommerce companies list by US

traffic. Again, Amazon topped the list, although, in their list, eBay took the second spot,

followed by Wal-Mart, then Max, and Easy.

3.2 STATISTICS

 Amazon’s revenue in 2020 was $386.06 billion, a 38% increase from 2019 (Source: Forbes)
 Amazon earned $21.3 billion in profit in 2020 (Source: Fortune)
 The company gained $8.1 billion in net sales in just the first three months of 2021
(Source: Digital Commerce 360)
 The company’s founder and former CEO, Jeff Bozos, has an estimated net worth of $211
billion (Source: Time)
 Amazon is the most valuable public company in the world (Source: CNBC)
 Amazon is responsible for more than 40% of all online sales (Source: PYMNTS)
 There are more than 300 million active user accounts on Amazon (Source: Amazon)
 Amazon is the third most popular advertising network. (Source: TheStreet)
 Amazon is expected to surpass Walmart as the world’s largest retailer, according to analysis by
JP Morgan (Source: CNBC)
 Amazon is also the number one retailer in the U.S., with 71% of citizens shopping on the site
in 2021
 66% of consumers bought pre-owned products on Amazon, more than any other site
(Source: Jungle Scout)
 In 2020, Amazon made up 47% of the U.S. ecommerce market (Source: Statista)
 Electronics are the most popular category of items on the site

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3.3 SHAREHOLDING PATTERN

3 Individual Insider Shareholders

Jeff Bozos

Jeff Bezos is Amazon's founder and executive chair of the board. He also happens to be the
company's biggest shareholder, with 1.26 billion shares. This represents 12.3% of the
company's outstanding shares. He was CEO of Amazon from its founding until July 5, 2021,
when he stepped down in favor of Andrew Jassy.

Andrew Jazzy

Amazon's chief executive officer (CEO) Andrew Jassy owns 2.04 million shares of the
company or about 0.02% of all outstanding shares. Before assuming the role of Amazon
CEO, Jazzy was previously the CEO of Amazon Web Services, the world's largest cloud
computing services company

Douglas Herrington

Douglas Blackburn holds 1.06 million shares of Amazon or 0.01% of outstanding shares.
Blackburn joined Amazon in 2005 and was appointed CEO of the Worldwide Amazon
Stores business in June 2022. Prior to this, he launched AmazonFresh in 2007 and led the
company's North American Consumer business Vanguard

3 Institutional Shareholders

Vanguard Group
Vanguard provides hundreds of mutual funds, exchange-traded funds (ETFs), and retirement
products. The company is primarily a mutual fund and ETF management company with
about $8.1 trillion in global assets under management (AUM) as of Dec. 31, 2022.

Based on its 1 filed for the period ending Dec. 31, 2022, Vanguard Group owns 712.07
million shares of Amazon. This represents about 6.9% of all outstanding Amazon
shares. Vanguard clients can invest in Amazon stock through the company's Consumer
Discretionary ETF (VCR). Amazon is the largest holding and accounts for 19.9% of the
fund's portfolio.

Black Rock
Black Rock (BLK), one of the world's biggest asset managers, sells the popular line of I
Shares ETF products. The company is primarily a mutual fund and ETF management
company with approximately $9.6 trillion in AUM.

This firm holds 594.72 million shares of Amazon based on its 13F filing for the period
ending Dec. 31, 2022. This accounts for 5.8% of all outstanding Amazon shares.7 Amazon
stock is the largest holding in the iShares U.S. Consumer Services ETF (IYC), comprising
13.9% of the fund.

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State Street
State Street is an investment firm based in Boston. The company serves a variety of clients,
including asset managers, insurance companies, financial institutions, and central banks.The
company reported $4.02 billion in AUM as of Dec. 31, 2022.

The firm had 336.27 million shares of Amazon in its portfolio. This is about 3.3% of the
company's outstanding shares.7 State Street's Consumer Discretionary Select Sector Fund
provides investors with access to Amazon stock, holding 31.74 million shares or 22.67% of
its portfolio

CONCLUSION
By making entry so easy, fast, and affordable, Amazon ensures that many people can sample
its products and become part of the Amazon experience, they also leverage on the
possibilities of the networking economy to reach out to more producers and consumers of
products sold by Amazon. Meanwhile, the Amazon ecosystem facilitates sharing of views and
experiences by consumers in multiple ways. At different times, some products contribute to
more revenue than others, but having them in one ecosystem allows Amazon to tweak offers
and handle administration tasks to succeed in capturing attention, promoting sharing and
facilitating a networking economy.

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