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As one of the world’s largest retailers, Amazon has a fascinating growth story. From its humble beginnings as an online bookseller to its current status as a retail giant, Amazon has continually reinvented itself and expanded into new markets. Its unique business model and focus on customer satisfaction have been key to its success. Amazon is a prime example of how innovation and continuous growth can lead to great success in business.
It is precise as the name implies. The Amazon River, which flows through South America and is the world’s largest river, was named after it. This is about 25 years old for Amazon.
Amazon was one of the first corporations to forecast the Industrial Revolution 3.0 and subsequently lead the Industrial Revolution 4.0. It was first restricted to online bookselling. They prioritized service over the abundance of products they might offer online. In less than two years, they extended to 45 U.S. states and sales increased to as much as $20,000 a week. Jeff felt he could now expand their services outside the bookshop, and in 1997 he took the company public for financial reasons.
Amazon’s IPO was met with less enthusiasm than Facebook’s. Amazon was significantly younger than the industry it operated in. Amazon, unlike other firms that promise investors fortunes, forewarned its investors of operational losses since it intended to invest extensively in technology.
The firm grew successfully. It expanded into new musical realms. Its emphasis on service secured client loyalty. This helped it survive the bursting of the “dot-com bubble.” On the day of IPO, the share was worth less than $2, yet it was worth $106 right before the collapse. In 2001, the company’s revenue surpassed $1 billion for the first time. Even after 20 years, this is a significant accomplishment.
Take a look at Alibaba’s ecommerce success story as well
Although Amazon grew into newer technological areas, this cannot be considered a vertical expansion. What began with Amazon Web Services (AWS) has now expanded to include Kindle, Prime, and Alexa. Amazon, which formerly solely offered online delivery services, is now a leader in Cloud computing, artificial intelligence, and machine learning.
Thousands of businesses have adopted cloud-based SaaS and rely on AWS. Many of them generate billions in income. Imagine, if these businesses generate so much money, how much Amazon might gain by providing infrastructure to thousands of similar businesses? Later, Amazon purchased the robotics company ‘Kiva Systems’
While Amazon developed in other fields as a market leader, it also acquired acquisitions that were unrelated to its core business. Some claim that “Data is the new oil,” yet the 2013 purchase of a newspaper like the “Washington Post” left everyone dumbfounded. In addition, they purchased ‘Zappos’ shoes, ‘IMDB’, and even ‘Whole Foods retail chain. Amazon has made several acquisitions within and outside of its industry.
Innovation is fundamental to Amazon’s business strategy. It has always invested in new technologies with a specific goal in mind. They adopted innovation and incorporated as many items as possible. This approach has led to the daily release of new items.
They originally used Machine Learning for Amazon purchasing, then fed it into Amazon Firestick, which they ultimately linked with Alexa!
Amazon taught the world the importance of customer service. Numerous businesses came and went, yet it stood sturdy and tall. All thanks to the unparalleled quality of its services. Amazon lacks a competitor in all areas, including buy-with-one-click, shipping, and returns.
Additionally, it did not replicate Microsoft’s errors. Microsoft immediately engaged in combat with everyone. It pitted its Bing search engine against Google, Surface against the Apple iPad, Zune against the iPod, and many more. Some of its goods were unquestionably profitable, but the company might have fared better if it had chosen its battles carefully.
It is something Amazon has always carried. Despite its numerous advances, it did not enter the market for operating systems (versus Android or Windows) or game consoles to compete with X-Box or PlayStation.
The next decade will be even more hectic. Companies like Alphabet (Google’s parent company) and Microsoft have already made forays into Amazon’s markets. They have the money and resources to give Amazon a run for its money.
Alphabet has Google, YouTube, Nest (home devices), and Waze (navigation). It is also working on self-driving cars, healthcare technology, and many other cutting-edge technologies. In addition, its Android operating system is used by millions of people around the world.
Microsoft has Bing, LinkedIn, Skype, X-Box, and Azure (cloud computing). It is also venturing into hardware with its Surface tablets and HoloLens augmented reality headset.
Amazon has its own advantages. It is the clear leader in e-commerce and cloud computing. It also has a large customer base that it can rely on. In addition, its Prime service offers many benefits that customers are willing to pay for.
The future is uncertain, but one thing is for sure: the next decade will be interesting for both Amazon and its competitors.