Recommendations: 9Conclusion: 9Reference List: 11Executive Summary: The goal of Amazon. com is to become world’s most customer centric organization, a place where customers can visit and browse and find anything and everything they might want to buy online. The goal also includes offering customers maximum variety at lowest price. Amazon. com offers a large number of new and used items in categories including books, movies, music and games, digital download, computers, electronics, grocery, health, beauty, toys, clothing, shoes, sports accessories, auto tools, etc. Amazon. com has become the market leader in its market segment by efficiently using its CRM methodologies combined with technological backup and supply chain management. Introduction: The world is changing like never before, customers are becoming more and more demanding and competition in business is very stiff.
In such a scenario, many companies have taken their business to the virtual world. The traditional way of doing business, called ‘brick and mortar’ cannot help businesses grow at the pace required. Companies are looking for new ways and platforms to grow the business at a rate that matches the growing expectations. To do so, companies have started launching business thru the web world.
They have opened a whole new segment and a new platform to run their conventional business. Many businesses like buying and selling goods, grocery retail and bookstores are now available online. In this report we will be looking at one such business: Amazon. com Inc. Background of Amazon. com: Amazon, now a multinational e-commerce organization, started its operations in only USA when started. Its operations, spread across the world are controlled from Seattle, USA. Amazon. com is now US’s biggest retail chain having business online only. It has outgrown its competition more than three times. The company was incorporated in 1994 by an American businessman Jeff Bezos, and its online operations started in 1995 with a book store.
During the years it has expanded its operations in DVDs, clothing, consumer goods, software, consumables, furniture, etc. The company has also expanded its operations outside US and launched dedicated websites for UK, Japan, China, France and Germany. When the company started its online business, it started with a bookstore. It had a bog advantage that while the real bookstore can offer a limited number of titles, an online version of the same can offer extra titles without much investment.
The organization was named Amazon after the longest river in the world. Its logo displays an arrow going from A to Z, which signifies that company wants to diversify its portfolio and to include a product from every letter in the alphabet. . The arrow is in shape of a smile which signifies happy customer. When launched, Amazon’s strategy was very different than other e-commerce companies. Most of the companies in the dot-com era looked to make immediate and large profits, whereas strategy of Amazon was not to expect short term profits and keep the long term view in sight.
Amazon suffered some losses, but it grew steadily, while other companies were growing at a very fast pace. Many investors and stockholders lost interest in the company it was growing at a very slow rate and did not attain profitability soon. When the dot-com boom came to a sudden halt and number of organizations in the virtual world closed their business after the bubble busted. Amazon survived this and it started earning profits in the year ’01, the profits were not significant, only 5¢ per share.
Since than company has been earning profits, but its cumulative profits are still negative.