How Did Amazon Become So Successful?
Dear Friends & Neighbors,
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It is difficult to be a 21st century American without having purchased something via Amazon. Despite the recent complaints from our POTUS about this company, let’s take a look at why and how this 24 year old company managed to have become the envy of all retailers. To get some background information, excerpt from wikipedia, in italics, below:
Amazon.com, Inc., doing business as Amazon, is an American electronic commerce and cloud computing company based in Seattle, Washington that was founded by Jeff Bezos on July 5, 1994. The tech giant is the largest Internet retailer in the world as measured by revenue and market capitalization, and second largest after Alibaba Group in terms of total sales. The amazon.com website started as an online bookstore and later diversified to sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics—Kindle e-readers, Fire tablets, Fire TV, and Echo—and is the world’s largest provider of cloud infrastructure services (IaaS and PaaS). Amazon also sells certain low-end products under its in-house brand AmazonBasics.
Amazon has separate retail websites for the United States, the United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico. In 2016, Dutch, Polish, and Turkish language versions of the German Amazon website were also launched. Amazon also offers international shipping of some of its products to certain other countries.
In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. Amazon is the fourth most valuable public company in the world (behind only Apple, Alphabet, and Microsoft), the largest Internet company by revenue in the world, and after Walmart, the second largest employer in the United States. In 2017, Amazon acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon’s presence as a brick-and-mortar retailer. The acquisition was interpreted by some as a direct attempt to challenge Walmart’s traditional retail stores.
Amazon became extremely successful due to some critical factors/reason:
- It’s attitude of “Customer Obsession”
- Innovation (Invent on behalf of customers)
- Long-term view
- Empowering others ( third party sellers, self-publishing feature)
- Patience to develop
- Acceptance of failures
- Available reviews of each product
- Its extremely efficient robotic system
- Its acquisitions: Amazon bought Kiva for $775 million in 2012. Kiva makes robots that automate the whole picking and packing process at large warehouses. By the end of 2014, Amazon had 15,000 bots working across 10 of its warehouses.
- List of mergers and acquisitions by Amazon
Jeff Bezos, founder of Amazon, summarizes what made Amazon so successful, below:
Gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker
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