History of Amazon

History of Amazon

Uploaded by dylanb98 on Oct 31, 2011

Amazon.com was founded by Jeff Bezos in 1995. Originally, the company was an online bookseller, but has expanded far beyond its original product line. Consumers can find just about anything at Amazon.com; in fact, the company has trademarked the catchphrase "Earth's Biggest Selection," which it uses in promotional materials to describe the dearth of Amazon's product availability, which includes (besides books) music, DVDs, videos, consumer electronics, toys, software, video games, health and beauty products, tools, kitchen products, and a number of other products through various partners (www.amazon.com, PG).

Amazon also offers services, such as film processing. Additionally, individuals and businesses can sell products on Amazon's website through its Amazon Marketplace, Auctions and zShops services. The company also operates websites in many other countries, including the United Kingdom, Germany, France, and Japan.

Strengths

Amazon's business strategy is based on market share growth, not profitability. To accomplish its goal, the company frequently takes advantage of opportunities to form alliances and strategic partnerships, as well to acquire other business operations. For example, when the online retailer Egghead.com went bankrupt in 2001, Amazon purchased the company's website, intellectual property, and product information.

Another strategy involves investing heavily in information technology. Indeed, Amazon's superior customer service and use of technology – two of the company's greatest strengths - have made Amazon.com "the best-known brand in e-commerce" (Hof, 2000).

The purpose of Amazon.com's existence is to sell products through the Internet and information technologies. Amazon is successful in the e-commerce industry because it is an innovator. Amazon.com is, perhaps, not so much an e-tailer as a technology company. It was the first online store to effectively utilize site personalization. Once a customer has made his first purchase at Amazon.com, each subsequent time he visits the site, he will be greeted by name and given recommendations for products in which he might be interested.

Similarly, Amazon uses e-mail messages to market to its existing customers, by tracking those customers' purchases and then periodically sending messages with suggestions and promotional information for similar products each individual customer might enjoy based upon his or her interests in books, music, movies, electronics, and other products sold by Amazon.com.

Amazon has even launched Amazon Access, an alternative version of its website geared toward visually impaired customers; the site's functions are compatible with screen access software that reads text aloud.

Amazon