Amazon project Essay
The company was begun as an online bookstore where people were able to search and read books through the internet. Consequently, the company sells low-end products that are sold under its amazon basics in-house brand. The company’s organization is distributed in different retail websites in the world from the United States, the United Kingdom, Ireland, Canada, Germany, Brazil, Italy, Australia, Spain, France, Japan, Mexico, and the Netherlands. The company also offers shipping packages to certain countries for different products; these products are for instance locally made chocolates and cheese. About Amazon Amazon company is based in Seattle, Washington. They get employed to enable the company to fulfill increased orders. History The company started in a garage while it was still selling books then it quickly outgrew the garage making its founder and the initial investors moved the business to a 2,000 square-foot warehouse after only six weeks.
After another six months, it has expanded demanding even a larger space which forced them to move to a 17,000 square-foot building. When starting, Amazon’s revenues kept on increasing such that they could double after every 2. 4 months of doing business having more than five million dollars sales in the first year. The fees are charged for such things as storage and logistics (Ritala et al. These fees vary from seller to seller; one third-party retailer disclosed that the fee they were being charged had increased from 8% per item in 2012 to 15% in 2013 when Amazon opted to take a larger cut of sales. Another important service that Amazon provides is Amazon Payments. This wholly owned subsidiary allows a customer to make purchases on a non-Amazon website, using their Amazon credentials.
Management Jeff Bezos is the CEO of Amazon company. They have been linked with funding politicians to pass bills they want or to get them into office. Current Developments Winning more customers has been the goal of the Amazon company and it is their goal to win more customers globally currently. To have more customers will mean that they must have more suppliers, distributors, lower prices, convenience and more products and services for customers to choose. They also work hard to ensure they keep their customers through serving them well and offering low prices than any other competitor (Huckman et al. The company continues to integrate retail vertically such that a customer cannot differentiate where Amazon starts or ends. Over the years since the company was formed it has been growing.
According to its financial accounts, the company’s revenues and assets have been increasing constantly at a very high rate meaning that the company does not intend to make profits for other uses but for reinvesting. This means that the company is continuing to reinvest their earning while aiming to serve more customers globally and continuing to improve their services to retain their current customer base. The company created an application which is free to use and persuaded most of its admirers and customers to use. The application’s main work is comparing other suppliers’ prices with Amazon prizes. Walmart was founded back in 1962 while Amazon started in 1994 but the reason Amazon is growing rapidly than Walmart is the use of the internet.
People are shifting from the culture of purchasing goods in stores to purchasing them online then they get delivered to their doorstep. Amazon has utilized internet more than Walmart has and it continues to give more offers and cheap prices to win more customers, unlike other online stores. this is seen in the difference between the growth rates of these two companies. The two companies have had both ethical and unethical competition. Customers take advantage of this promotional week by purchasing more items which are the intention of the company. Mostly, it is not aimed at making a profit but finishing the stock they have kept on shelves for long. Market Share The company sold its shares at $350 per share in January 2015.
In 2015 the companies continued to reinvest and to get more investors who made its worth to increase and by the end of the year, they were selling their shares at $675 per share. It dropped drastically to almost $555 per share by February 2016 but they redeemed themselves. The company trades more than 100 times the year’s estimates. In a few years to come, the company will be the leading retailer globally. The aim of the company is to be able to serve all online customers across the globe. Although some online retailers are also coming up Amazon competes by providing the lowest possible price that their competitors cannot offer to the customers. REFERENCES Amazon (AMZN) - 21 Year Stock Price History. com. Chevalier, J.
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