Institute of Business Administration

University of Rajshahi

Program: MBA(Evening)
Batch: 17th Batch
Semester: 4th Semester
Course Title: International Business
Course Code: C-628

Assignment On: Amazon

Submitted To:
Submitted By:
Dr.Md. Shariful Islam
Nazmun Nahar Dipty (1810085126)
Nafisa Israt (1810085121) Professor
Khandoker Ulfat Sadikatu Shanin (1810085134)
Asrafun Nahar (1810085138) Institute of Business Administration
Institute of Business Administration
Rajshahi University
Rajshahi University

Submission Date: 29th October 2019

 History of Amazon

Amazon.com, is an American multinational technology company based in Seattle,

Washington that focuses on e-commerce, cloud computing, digital streaming,
and artificial intelligence.
It is considered one of the Big Four technology companies along
with Google, Apple, and Facebook. Amazon is known for its disruption of well-
established industries through technological innovation and mass scale.
It is the world's largest e-commerce marketplace, AI assistant provider, and cloud
computing platform as measured by revenue and market capitalization. Amazon is
the largest Internet Company by revenue in the world. It is the second largest private
employer in the United States and one of the world's most valuable companies.
Amazon is the second largest technology company by revenue.
In many ways, Amazon.com is perhaps the company that is most closely tied with
the E-Commerce phenomenon. The company has grown from a book seller to a
virtual Wal-Mart of the Web selling products as diverse as Music CDs, Cookware,
Toys and Games and Tools and Hardware.
Background:
The story of the formation of Amazon.com is often repeated and is now an urban
legend. The company was founded by Jeffrey Preston Bezos, a computer science
and electrical engineering graduate from Princeton University. Bezos had moved to
Seattle after resigning as the senior vice-president at D.E.Shaw, a Wall Street
investment bank.
He did not know much about the Internet. But, he came across a statistic that the
Internet was growing at 2300%, which convinced him that this was a large growth
opportunity. Not knowing much more, he plunged into the world of E-Commerce
with no prior retailing experience. He chose to locate the company in Seattle because
it had a large pool of technical talent and since it was close to one of the largest book
wholesalers located in Roseburg, Oregon. Clearly, he was thinking of the company
as a bookseller at the beginning. Moreover, the sales tax laws for online retailers
state that one has to charge sales tax in the state in which one is incorporated. This
means that for all transactions from that state the price would be increased by the
sales tax rate leading to a competitive disadvantage. Therefore, it was logical to
locate in a small state and be uncompetitive on a smaller number of transactions
rather than in a big state such as California or New York.
Foundation:
On July 5, 1994, Jeff Bezos initially incorporated the company in Washington
State with the name Cadabra. Inc. He later changed the name to Amazon.com, Inc.
a few months later, after a lawyer misheard its original name as "cadaver". In its
early days, the company was operated out of the garage of Bezos's house on
Northeast 28th Street in Bellevue, Washington. In September 1994, Bezos purchased
the domain name relentless.com and briefly considered naming his online store
Relentless, but friends told him the name sounded a bit sinister. The domain is still
owned by Bezos and still redirects to the retailer.

Evolution of Amazon:
1994 July 5: Amazon was founded
1997:
May 15 Amazon Goes Public:
Amazon goes public at $18 per share, giving it a valuation of $300 million. In its
filing, the company warns investors that it expects to report "substantial operating
losses for the foreseeable future," due to heavy investments in technology and
marketing as it seeks to beat back tough competition from bookselling giant Barnes
& Noble.
November 18 Opens new facility:
As demand increases, Amazon opens a second distribution center in New Castle,
Delaware, in order to serve customers on the East Coast. The 200,000-square foot
facility is the beginning of a network that will eventually touch almost every state in
the nation.
1998:
June11 Amazon Expands into music:
Amazon expands its offerings and starts selling CDs and DVDs. The music section
launched with 125,000 titles — far more than the average physical music store —
and allowed shoppers to listen to song clips as well as view recommendations
matched to their mood.
1999:

September 28 Amazon secures "1-Click" patent:

Amazon patents the ability to purchase an item online with the click of a mouse.
Called 1-Click, the technology gives the company an early advantage by prompting
customers to buy more and allowing the company to collect their data. Amazon
would later sue Barnes & Noble for infringement, forcing other websites to license
the technology until the patent expired in 2017.
September 30 Amazon launches 3rd party seller marketplace:

Originally cast as a way for shoppers to find rare and collectible books and other
specialty items, Amazon allows third-party sellers to hawk used merchandise in what
it called zShops (now known as the Marketplace). That sparks a huge increase in the
volume of transactions on Amazon.com. Over the first four months, a quarter of a
million customers bought something using the service.

2002:
January:
Amazon Launches Free Super Saver Shipping which allows customer to get free
shipping for orders above $99.

November 7 Amazon starts selling clothing:

Amazon announces a partnership with several major clothing companies to offer 400
apparel brands in its online store. Amazon has now moved far beyond books, with
offerings that include electronics, toys, kitchenware, and even magazine
subscriptions.

2003:

June 10 Amazon launches web hosting business:

The company starts to generate extra income by licensing its platform to other e-
commerce sites, like Borders.com and Target.com. Fifteen years later, Amazon Web
Services dominates cloud hosting and is one of the company's biggest revenue
drivers.

2004:

August 19 Amazon enters China:

Amazon pays $75 million to buy Joyo, the largest online seller of books and
electronics in the growing Chinese market. But the division — renamed Amazon
China — faced stiff competition. As of 2018, it only had 0.7% of online sales,
trailing far behind Alibaba's 58.2%, according to eMarketer.

2005:

February 2 Amazon Prime debut

During an earnings call, Bezos announces a $79-a-year loyalty program that includes
free two-day shipping on any order. Now, with more than 100 million members
worldwide, Prime is considered one of Amazon's most valuable assets.

2007:
November 19 The Kindle goes on sale:

Just as the holiday shopping season is about kick into full gear, Amazon unveils its
Kindle. The electronic reading device enables users to wirelessly download books,
magazines and newspaper articles among other content. Starting price: $399.

December 21 Amazon announces a new headquarters in Seattle:

In a decision that will transform Seattle's real estate market, Amazon makes a deal
with the city and a developer to consolidate its scattered workforce into 1.6 million
square feet in a gritty industrial neighborhood north of downtown. The city raises
height limits to accommodate larger buildings. The company's new headquarters will
eventually house 40,000 employees in more than 8 million square feet.
2008:
January 31 Amazon acquires audiobooks company Audible:

Amazon pays $300 million for Audible, which comes with a library of 80,000
programs in the United States and Europe. The move comes just two months after
Amazon launched its Kindle device for e-books. Audible now holds 41% of the
audiobook market, which has been growing rapidly with the rise of smartphones and
streaming-enabled car stereo systems.

2009:
July 22 Amazon acquires shoe shopping site Zappos:

Amazon buys online shoe retailer Zappos in an all-stock deal worth nearly $900
million. Despite attempts to penetrate the shoe market Amazon hadn't been able to
catch up with Zappos.com, which provides free returns and overnight shipping.
After the deal closed, Amazon allowed the company to remain based in
Henderson, Nevada, under CEO Tony Hsieh.

2010:
July:
Amazon announced that e-book sales for its Kindle reader outnumbered sales of
hardcover books for the first time ever.

2012:
March 19 Amazon acquires robotics company Kiva Systems:

Amazon buys Kiva Systems, a Massachusetts-based maker of warehouse robots,

for $775 million. The deal allows Amazon to amp up automation at its fulfillment
centers, delivering products faster and with less need for human staff. Amazon
later terminated Kiva's client relationships with retailers like Office Depot and the
Gap in order to keep the technology to itself.

2013:
March:
Amazon acquires social reading and book-review site GoodReads.
June:
Amazon Launches in India
November11 Amazon starts delivering on Sundays:

Amazon begins delivering packages through the US Postal Service seven days a
week in Los Angeles and New York. It will later roll out the service nationwide.
Although Amazon's contract with the mail carrier is confidential, the USPS says it
makes a profit on the deal.

2014:
June 18 Amazon unveils its first (and last) smartphone:

Amazon enters the smartphone market with its Fire phone, which integrated with
Amazon's universe of media streaming options. But the phone flopped, forcing
Amazon to take a $170 million write down and cease production the following year.

August 25 Amazon acquires the social video game streaming site Twitch:

Amazon buys Twitch Interactive, the three-year-old video game streaming

company, for $970 million. The deal not only complements the work being done at
Amazon's own game production division, but it helps pull the global gaming
community towards its cloud platform, Amazon Web Services.

2015:
November 2 Amazon opens its first physical bookstore:
After being blamed for the decline of independent bookstores across the country,
Amazon opens its own physical retail location in Seattle. The store's opening is
meant to market Amazon's growing list of electronic devices as much as it is to sell
books. Amazon now has 15 bookstores in cities across the United States.

November 10 The Echo becomes widely available:

After unveiling its first smart speaker in 2014 to select customers, Amazon puts the
Echo in 3,000 stores nationwide just in time for the holiday season. The Echo is the
platform for Alexa, Amazon's virtual personal assistant, and therefore the key to a
wealth of consumer data and purchasing decisions.
2017:
June 16 Amazon acquires Whole Foods

After struggling for years in the intensely competitive grocery delivery business,
Amazon ups the ante and purchases Whole Foods' 471 stores for $13.7 billion. It has
since started to integrate the two companies' distribution networks and offer
discounts to Prime members.

2018:
September 4 Amazon reaches a $1 trillion market cap:

Fueled by investor enthusiasm for rising profits, Amazon's stock price rises enough
to make the company briefly worth $1 trillion. It's the second company to pass that
threshold, after Apple reached it earlier in the year, and analysts quickly started to
predict $2 trillion won't be too far off in the future.

November 13 Announces New York and Virginia will be home to HQ2:

More than a year after it first announced its competition for its second headquarters,
Amazon finally chooses New York's Long Island City and Virginia's Arlington to
split the duties as its HQ2. Both locations will receive a $2.5 billion investment from
Amazon, and each will employ more than 25,000 workers over time.

2019:
February 14 Amazon cancels plans for New York headquarters:
Amazon ditches plans to build a new headquarters in New York after facing
backlash from local politicians and community members. In a statement Amazon
said "a number of state and local politicians have made it clear that they oppose our
presence” in Long Island City. The company’s decision was met with cheers by
some and jabs from politicians frustrated by the company's decision to walk away.
Amazon said it did not intend to reopen the search for a new HQ2 location and that
its plans in Northern Virginia and Nashville, Tennessee, remain in place.
 Products and services offered by Amazon

Product Types of Products Product Types of Products

Category Category
Kindle Devices
Amazon Device Accessories Accessories
Amazon
Kindle

Parts, Tools & Equipment, Nursery, Feeding, Gear

Accessories
Baby
Automotive & Products
Power sports (Excluding
Apparel)

Fragrance, Skincare, Makeup, Books, Calendars, Card

Hair Care, Bath & Shower. See Decks, Sheet Music,
Beauty
also Health & Personal Care. Books Magazines, Journals, Other
New only Publications

Business-relevant products across Phones

multiple categories. Special
Business Cell
pricing features to target business
Products (B2B) Phones
customers
Outerwear, Athletic Wear,
Cameras, Camcorders, Innerwear, Belts, Wallets
Camera
Telescopes Clothing &
& Photo
Accessories

Graded collectible coins minted Audio, Video, Camera,

by governments, US Mint Photo, Phone, Car
Collectible packaged product, gold coins, Electronics Electronics, Computer, and
Coins silver coins, platinum coins, (Accessories) Office Accessories Cell
palladium coins
 Earrings, Necklaces, Rings, Lab Equipment & Supplies,
Bracelets (see also Watches) Industrial Materials, Power
Fashion
Industrial & Transmission, Electronic
Jewelry
Scientific Components, Sanitation,
Janitorial

Earrings, Necklaces, Rings, Paintings, Drawings,

Bracelets (see also Watches) Mixed Media (Two-
Fine Fine
Dimensional), Limited
Jewelry Art
Collectible
Edition Prints and
Photographs

chen, Dining, Pet Supplies, Grocery & Beverages, Breakfast,

Furniture, Décor, Bedding, Bath,
Home &
Craft, Hobby, Home Appliances,
Garden
Storage, Patio, Lawn, Garden,
Pool Supplies, Landscaping,
Snow Removal, Generators
Handmade and Hand-altered
Handmade Products
Gourmet Canned Goods, Household
Food Supplies, Snacks, Meat,
Seafood, Chocolate,
Desserts, Gift Baskets
Vintage collectibles related
to historical people, places,
Historical & or events and promotional
Advertising materials related to
Collectibles consumer brands.

Luggage, Bags, Backpacks, Health & First Aid, Nutrition. See

Briefcases, Umbrellas, Travel Personal also Beauty.
Luggage
Accessories Care
& Travel
Accessories

CDs, Cassettes, Vinyl, and other Guitars, Orchestra,

sound recordings Recording Equipment
Music
Musical
Instruments

Supplies, Furniture, Printers, Outdoor Gear, Outdoor

Calculators Sports Apparel, Cycling,
Office
Outdoors and Action Sports
Products
 Professional Services such as Shoes, Shoes, Boots, Sandals,
Assembly, Handyman, Electrical, Handbags & Slippers, Handbags,
Professional Plumbing, House Cleaning and Sunglasses Sunglasses, Eyewear
Services more Frames

Business, Media Education,

Utility, Security, Children's Exercise & Fitness,
Software
Software and PC Games Sports Hunting Accessories, Team
& Computer
Sports, Licensed/Fan Shop,
Games
Athletic Apparel,
Trading Cards, Game-Used and Hand & Power Tools,
Autographed Items Plumbing, Electrical,
Sports
Collectible Tools & Building Materials,
Collectibles
Home Appliance Parts
Improvement

Infant and Preschool, Learning Video, DVD Movies, TV

and Exploration Toys, Ride-ons, & Blu-Ray
Toys &
Action Figures, Dolls, Board
Games
Games, Arts, Crafts, Hobbies,
Furniture

Game Consoles, Console Games, Watches All Watches

Accessories
Video
Games & Video
Game Consoles

Retail goods
Amazon product lines include several media (books, DVDs, music CDs, videotapes,
and software), apparel, baby products, consumer electronics, beauty products,
gourmet food, groceries, health and personal-care items, industrial & scientific
supplies, kitchen items, jewelry and watches, lawn and garden items, musical
instruments, sporting goods, tools, automotive items and toys & games.
In 2014 Amazon sold 63% of all books bought online and 40% of all books sold
overall.
Amazon Prime
Amazon Prime membership in Germany, the United Kingdom, India, and the United
States also provides Amazon Video, the instant streaming of selected movies and
TV shows at no additional cost. In November 2011, it was announced that Prime
members have access to the Kindle Owners’ Lending Library, which allows users to
borrow certain popular Kindle e-books for free reading on Kindle hardware, up to
one book a month, with no due date.

Amazon added Prime Photos, which allows unlimited photo storage in the users'
Amazon Drive. Amazon Prime said customers placed 60 percent more orders
worldwide on "Prime Day".
Amazon Garage
In addition to selling automotive parts and products, Amazon offers the Amazon
Garage service on Amazon.com, that lets users add information about their vehicles
(the make, model, year, engine size, trim style, and transmission type) and then
search only for the parts and products compatible with those vehicles. (It does not
store identifiable information such as VIN nor license plate number.).

Consumer electronics

A Kindle Fire

Amazon launched the Kindle, an e-reader which downloads content over "Whisper
net", via Sprint's EV-DO wireless network. The screen uses E Ink technology to
reduce battery consumption and to provide a more legible display. Starting in 2012
Amazon began offering differing models within generations of its readers starting
with the Paper white, Voyage, and most recently the Oasis 2.

The company entered the smartphone market in July 2014 with the release of the
Fire Phone.

Amazon sold a voice-enabled smart speaker called Echo. Amazon launched Amazon
Echo dot, a smaller, more affordable version of the Echo.
Digital content

Amazon Music, a online music store, was launched as Amazon MP3 in the US
selling downloads exclusively in MP3 format without digital rights management. (In
addition to copyright law, Amazon's terms of use agreements restrict use of the
MP3s, but Amazon does not use digital rights management (DRM) to enforce those
terms.). In addition to independent music labels, Amazon MP3 primarily sells music
from the "Big 4" record labels: EMI, Universal, Warner Bros. Records, and Sony
Music. Prior to the launch of this service, Amazon made an investment in Amie
Street, a music store with a variable pricing model based on demand. Amazon MP3
was the first online offering of DRM-free music from all four major record
companies.

Amazon Games Studios

Amazon acquired game developer and distributor Reflexive Entertainment. This
studio continued to develop games for PC, Mac and Kindle eReaders under the
brands Reflexive and Amazon Digital Services. Notable titles include Every Word
for Kindle Paperwhite and Airport Mania for Kindle Fire, Android, iOS Windows
and Mac.
Amazon announced its intent to acquire the video game streaming website Twitch
for $970 million. The acquisition of Twitch is expected to help Amazon drive
Internet traffic and potentially boost its Prime membership program, and promote its
video ad and Fire TV set top box business.
Amazon Art
In August 2013, Amazon launched Amazon Art as an online marketplace selling
original and limited edition fine art from selected galleries. The initial 40000 items
listed for sale included Norman Rockwell's painting Willie Gillis: Package from
Home priced at $4.85 million, L'Enfant a la tasse by Claude Monet for $1.45
million and Andy Warhol's Sachiko for $45 000.
Amazon Video
Main articles: Amazon Video, Amazon Instant Video UK, and Amazon Instant
Video German
Amazon Video is an Internet video on demand service by Amazon in the United
States, United Kingdom, India, Japan, Austria and Germany. In 2015, the Prime
Instant Video exclusive series Transparent earned two Golden Globe Awards, and
Transparent is the first series from a streaming service to win a Golden Globe for
best series.
Amazon Business
On April 28, 2015, Amazon announced its launch of Amazon Business.Amazon
Business is a service that provides registered business owners with a consolidated
platform for buying products and supplies from Amazon. Business users have access
to shipping benefits, discounts on eligible products, purchase analytics, and price
comparisons from different sellers.
Amazon Drive
Amazon Drive, formerly known as Cloud Drive, is a cloud storage application
offering secure cloud storage, file synchronization, file sharing, and Photo
printing.[81] Using an Amazon account, the files and folders can be transferred and
managed from multiple devices including web browsers, desktop applications,
mobiles, and tablets. Amazon Drive also lets their U.S. users order photo prints and
photo books using Amazon Prints service.
Private labels and exclusive marketing arrangements
List of Amazon brands
In August 2005, Amazon began selling products under its own private label,
"Pinzon"; the trademark applications indicated that the label would be used for
textiles, kitchen utensils, and other household goods. In March 2007, the company
applied to expand the trademark to cover a more diverse list of goods and to register
a new design consisting of the "word PINZON in stylized letters with a notched letter
"O" which appears at the "one o'clock" position".Coverage by the trademark grew
to include items such as paints, carpets, wallpaper, hair accessories, clothing,
footwear, headgear, cleaning products, and jewelry. In September 2008, Amazon
filed to have the name registered. USPTO has finished its review of the application,
but Amazon has yet to receive an official registration for the name.

Amazon Studios
Amazon Studios is Amazon.com's division that develops television shows, movies
and comics from online submissions and crowd-sourced feedback. It was started in
late 2010. Content would be distributed through Amazon Video, Amazon's digital
video streaming service, and a competitor to services like Netflix and Hulu. For
films, Warner Bros. is a partner.
Amazon Web Services
Amazon launched Amazon Web Services (AWS) in 2002, which provides
programmatic access to latent features on its website. Amazon began testing
Amazon Mechanical Turk, an application programming interface (API) allowing
programs to dispatch tasks to human processors.

Amazon launched an online storage service called Amazon Simple Storage Service
(Amazon S3). An unlimited number of data objects, from 1 byte to 5 terabytes in
size, can be stored in S3 and distributed via HTTP or BitTorrent. Amazon announced
Amazon Glacier, a low-cost online file storage web service that provides reliable
data archiving, storage, and backup.
New book content production

Amazon Publishing is Amazon's publishing unit launched in May 2009. It is

composed of AmazonEncore, AmazonCrossing, Montlake Romance, Thomas &
Mercer, 47North, Powered by Amazon, New Harvest, Grand Harbor Press, Two
Lions, Skyscape and Waterfall Press.
Amazon Smile
Amazon also created "channels" to benefit certain causes. In 2004, Amazon allowed
customers to donate $6 to $200 to the campaigns of 2004 US presidential candidates,
providing links that raised $300,000 for the candidates. Amazon has periodically
reactivated a Red Cross donation channel after crises such as Hurricane Sandy,
Hurricane Katrina, and the 2004 earthquake and tsunami in the Indian Ocean.
Amazon Wireless
In July 2009, Amazon.com launched an Amazon Wireless website, which offers
cellular devices and service plans for Verizon Wireless, AT&T, Sprint and T-Mobile
in the US.
Amazon deals
Headphones, PS4 Games, Keyboards, Printers, Watches
Amazon Fresh and Amazon Prime Pantry
Amazon Fresh is a home grocery delivery service first trialed in 2007, and later made
available in Boston, Seattle, Los Angeles, San Francisco, California, San Diego,
Brooklyn, New York and Philadelphia, PA. In 2017 Amazon purchased Whole
Foods and began selling 365 (whole foods store brand products) through Amazon
Fresh.

Amazon Prime Pantry is a similar service covering the 48 contiguous United States,
allowing the order of up to 45 pounds of dry goods and non-perishable groceries for
a flat delivery fee.
Amazon Dash
On March 31, 2015, Amazon.com announced that it was expanding Amazon Dash
to include an Amazon Dash Button and a Dash Replenishment Service.
Amazon Go

The Amazon Go test store

Amazon Go, a store that uses cameras and sensors to detect items that a shopper
grabs off shelves and automatically charges a shopper's Amazon account, was
opened to the general public in Seattle. Customers scan their Amazon Go app as they
enter, and are required to have an Amazon Go app installed on their smartphone and
a linked Amazon account to be able to enter. The technology is meant to eliminate
the need for checkout lines.
Amazon Supply
Amazon Supply, launched in 2012, offers industrial and scientific components and
maintenance, repair and operations (MRO) supplies. Amazon Supply was developed
based on experience operating Smallparts.com, acquired in 2005. (The
Smallparts.com brand was discontinued with the launch of Amazon Supply.) While
Amazon Supply uses the same order fulfillment and distribution system as
Amazon.com, its online store provides services to customers in more than 190
countries.
Amazon Music Unlimited
In October 2016, Amazon Music released a music streaming service called "Amazon
Music Unlimited." Unlike Prime Music with its somewhat limited catalog, this
stand-alone music streaming service has "tens of millions"of songs and is intended
to compete with music streaming leaders such as Spotify and Pandora Radio. It has
a similar price structure, albeit with a $2/month discount for Amazon Prime
members.
Amazon Tickets
Amazon launched a ticket service called "Amazon Tickets" in 2015 in the UK and
soon will expand it across Europe, US, and Asia to compete with the likes of industry
leader Ticketmaster while also disrupting the Live Entertainment market
Amazon Books
On November 2, 2015, Amazon opened its first physical retail store, a bookstore in
the University Village shopping center in Seattle. The store, known as Amazon
Books, has prices matched to those found on the Amazon website (for Prime
members) and integrate online reviews into the store's shelves.
Amazon Home Services
In March 2015 Amazon launched a new on-demand service, Amazon Home
Services, aimed at offering homeowners a marketplace for professional services
such as plumbing, electrical, audio/visual installation, and lawn services. The Home
Services category designed to make finding a specialist easy by verifying that
providers are properly licensed and insured for the job. Service is "Satisfaction
Guaranteed" and offers a refund if you are not happy in the end. Additionally,
reviews are verified so you know the reviewer actually paid for and used the services.
Amazon Destinations
In April 2015, Amazon rolled out a new travel site called Amazon Destinations,
which focuses on helping customers find "getaway destinations" within driving
distance of their homes. Amazon Destinations featured hotel selections in three
United States metro areas: L.A., New York and Seattle. Later that year, Amazon
discontinued the service.
Handmade by Amazon
In October 2015, Amazon announced a new handmade marketplace called
Handmade By Amazon, already having 5,000 sellers from 60 countries and 80,000
items for sale. The platform is designed for artisans to sell their good directly to the
public, similar to the platform Etsy.
Amazon Inspire
In June 2016, Amazon Inspire launched as a way for educators to share free lesson
plans, worksheets, and videos.
Amazon Cash/Top Up
Amazon Cash (in the United States and Canada) and Amazon Top Up (in the United
Kingdom) are services allowing Amazon shoppers to add money to their Amazon
account at a physical retail store. The service, launched in April 2017, allows users
to add between $5 and $500 (£5 and £250) to their accounts by paying with cash at
a participating retailer, who scans a barcode linked to a customer's Amazon account.
Amazon 4-star
Amazon announced to debut the Amazon 4-star in New York, Soho neighborhood
Spring Street between Crosby and Lafayette on 27 September 2018. The store carries
the 4-star and above rated products from around New York. The amazon website
searches for the most rated, highly demanded, frequently bought and most wished
for products which are then sold in the new amazon store under separate categories.
Along with the paper price tags, the online-review cards will also be available for
the customers to read before buying the product.
Merch by Amazon
On September 30, 2015 Amazon announced the launch of Merch by Amazon, a
service intended to help content creators generate revenue through the sale of
branded T-shirts and other merchandise items such as long sleeve shirts, sweatshirts,
hoodies and PopSockets grips, designed by creators and sold, produced and fulfilled
by Amazon. Since the summer of 2018, the service has also been available on the
European marketplaces in Germany and Great Britain.
Amazon Care
On September 24, 2019 Amazon launched a new healthcare app service for its
employees in Seattle. The app offers virtual access to professionals through video
chat or text, it allows employees to get their prescribed drug delivered to their home
or office, the app is available for Amazon employees and their dependents only.

Competitors of Amazon

It started as an online bookstore, but today Amazon is a behemoth in all areas of e-

commerce, fuelled by a strong Marketplace network of third-party sellers, an ever-
expanding range of goods from groceries to fashion, and a very popular loyalty
program in the form of Prime. Amazon is set to clear $258.22 billion in US retail
sales in 2018, according to eMarketer’s figures, which will work out to 49.1 percent
of all online retail spend in the country, and 5 percent of all retail sales.
No one can’t not reach Amazon as their high volume of investment and low cost
strategy. But rest of the 50% of e commerce market are dominated by few lager and
small e commerce & online seller , where more then 20% hold by the direct
competitors of Amazon . They are selling same category products, offers and other
services as Amazon do.
Here , Amazon’s in direct competitors are those small and medium online seller ,
third party merchants . They may be not having huge volume of sell and investment.
But they have the power to provide best customer service which large companies
can not . They can understand customer test, can make personal relationship with
customer that can be their competitive advance to hold on the race . As Amazon
does not sell its own product they bring it from third party but many small e
commerce and online seller produce own product so they have better knowledge of
customer test. As per their power to understand customer test and making personal
relationship with customer they could be a best competitor cumulatively.
Now come to the direct competitors of Amazon .Amazon have different business
segments like E commerce, Offline Store, Media , Online Traffic etc .Here I analysis
competitors of Amazon as per their different business .
Amazon Competitors In E-commerce Segment:

Alibaba.com : A top e-commerce company, has its origin from China and it was
founded in the year 1999. It is a platform for wholesale trade. Alibaba.com caters to
many buyers and sellers across the world. Alibaba.com is a one-stop platform which
focuses on many products across various categories that include electronics,
clothing, machinery, home and garden and many more Alibaba has invest more hen
2x minority investment outside the China hen Amazon . Due to its core commerce
and usage of technology like cloud computing and digital media in the business, it
is considered as Amazon competitors.
Wal-Mart : Also regarded as a top competitor for Amazon . Walmart.com
provides a wide range of products that are of supreme quality. Apart from products
they also provide friendly service and have daily offers at low prices. Walmart,
headquartered in San Francisco in the year 2000 is a controlled by Wal-Mart stores,
Inc. The main goal of this top e-commerce company is to get their customers a
unique approach to shopping on the internet. Walmart.com caters to many products
across various categories. This company also provides various kinds of the gift card
which can be redeemed at Walmart stores. The Wal-Mart gift cards can be managed
through their website itself. Due it its various unique features.Wal-Mart e-commerce
sales up 43% 2018 in the US market.

eBay: In the e-commerce segment Ebay is the top competitor of Amazon. eBay
Inc. is an e-commerce marketplace founded in 1995 by Pierre Omidyar
headquartered in San Jose, California. The company website engages both business-
to-business and business-to-consumer sales. After its humble beginning, eBay
turned into a household name. After Amazon, eBay is the second largest e-commerce
company in the United States in sales share at 6.1%.
Best Buy: Is an American Consumer Electronics Retail Company operates in
United States, Canada and Mexico and headquartered in Richfield Minnesota.
According to forbes.com the company e-commerce sales is around 14% of the total
revenue. The company is focusing on e-commerce growth to remain competitive in
the Amazon dominated ecommerce marketplace. This consumer electronic company
is working hard to cut costs, stabilize its revenue stream and increase its online sales.
Best Buy made huge investments in the online platform and shown improvements
in the online sales. The company is also looking forward to build digital capabilities
that can increase customer shopping experience on digital devices.
Flipkart: The famous and top e-commerce company, is headquartered in
Bangalore. It was founded in the year 2007. It is the biggest online store for apparels,
furniture, beauty care, electronics and many more.

It has about 100 million registered users and 100 thousand registered sellers. It
provides 24X7 customer service; the customers can place an order by using their
website or their app. By using their user-friendly interface, the customers will have
a smooth flow of purchase starting from selecting the product, payment, tracking the
order and delivery of the product.

Priceline, JD.com, Otto are the other companies competition with Amazon in E
commerce industry.

Amazon Competitors with strong Offline Retail presence :

Amazon Go is a chain of convenience stores in the United States operated by the
online retailer Amazon, with 17 open and announced store locations in San
Francisco and New York City as of 2019. The stores are partly automated, with
customers able to purchase products without being checked out by a cashier or using
a self-checkout station .

Considering their retail presence Amazon have many competitors those are :

Wal-Mart: Is a multinational retail corporation that is based out in the United

States. It controls a series of discount departmental stores, grocery stores, and
hypermarkets. Wal-Mart has about 11,718 stores across 28 countries. It is considered
the world’s largest revenue generating company.

In India, Wal-Mart has about 21 stores across nine states that offer almost 5,000
products to the customers in the wholesale format of Cash and Carry. Wal-Mart’s
stores give the best price with wider choice and focus on the quality of products to
their customers due competitors.

Costco: Yet another warehouse club is devoted to bringing out the feasible prices
for the customers. Their main focus is on quality and price so that the customers will
be able to get the benefit of their service. Due to their wide reach of offline retail
business, Costco is considered as one of the top Amazon competitors .
Target: Also regarded as one of the top Amazon competitors, Target Corporation
is another discount retailer that is headquartered in the United States. Target
Corporation has about 1,834 stores across the United States. Target Corporation has
a widespread deal with various products based on the design and brand. The stores
of Target offer products at low cost and of high quality. The products display is
arranged in an attractive way with clean fixtures. Due to their excellent selection of
products and the brands, it is considered as top Amazon competitors.

Amazon Competitors In Media (Amazon prime competitors) :

Amazon’s Prime membership program has emerged as a very popular scheme that
saw great levels of adoption among online shoppers. For a flat fee of $12.99 per
month, or $119 per year, the program offers a number of benefits. It includes fast,
free two-day shipping with flexible delivery options . But competitors are not far
behind in offering similar schemes. Here's a list of top alternative programs to
Amazon Prime.
Netflix: An American entertainment company, Netflix is headquartered in
California, United States. Netflix has their core business functions in streaming
media, video-on-demand online. Netflix is one of the leading entertainment services
over the internet across the world. It is estimated to have about 117 million members
across 190 countries that make use of Netflix online entertainment channel to more
than 140 million hours of programs. Users of Netflix can watch anything at any place
without having a limit. Users can also make use of various operations like pause,
play, resume etc. while watching the online entertainment channel. Due to their
excellent services and bandwidth provided to the users, Netflix is considered as one
of the top Amazon competitors.
ITunes: Also regarded as an online entertainment channel, iTunes act as a media
player, media library, mobile device management and internet radio broadcaster.
This application is developed by Apple Inc. Users can make use of iTunes to play,
download and organize digital multimedia files. It can also allow users to play audio
and video on personal computers in Mac and windows operating system. Due to the
various entertainment features that are provided online by iTunes, it is considered as
one of the top Amazon competitors.
Amazon competitors In Online Traffic:
Facebook: Stores and facebook advertising taking away the money from Amazon
advertising. facebook is a huge social media platform and dominate the social
sphere while Amazon online retail business. Amazon is trying to add social aspects
while Face book want to enter e-commerce. Face book marketplace has a huge
success in 2018. Small business owners and local sellers are using Facebook
marketplace to offer goods and services. This is a direct threat to Amazon’s resale
market which is moving Amazon to private labeling even more. Facebook and
Amazon are marketing competitors where small business owners use Facebook
sponsor ads and Amazon PPC.
Google: Small E-commerce players who advertise via Google and take away the
market share of Amazon .

Winning Strategy of Amazon

Strategy can also be defined as “A general direction set for the company and its
various components to achieve a desired state in the future”.
Amazon business strategy can be described as cost leadership taken to the extreme.
The global online retailer operates with a razor thin profit margin and succeeds due
to a combination of economies of scale, innovation of various business processes
and a constant business diversification.
Amazon business strategy is guided by four principles:
 Customer obsession rather than competitor focus,
 Passion for invention,
 Commitment to operational excellence, and
 Long-term thinking.
Amazon employs a multi-level e-commerce strategy. Amazon started by focusing
on business-to-consumer relationships between itself and its customers and
business-to-business relationships between itself and its suppliers and then moved
to facilitate customer-to-customer with the Amazon marketplace which acts as an
intermediary to facilitate transactions.
With These 7 Strategies, Amazon Will Dominate Any Market-
1. Prime as the hub of the wheel:
Amazon Prime was first framed as an incremental improvement in its value
proposition, in the form of free shipping. That has since evolved into the linchpin of
the Amazon empire. While sellers of everything from throwaway fashion to antiques
prefer independent, direct-to-consumer channels, Amazon is the 800-pound gorilla.
Sellers complain about their inability to control MAP (minimum advertised price).

2.Fuel for small businesses:

While Amazon's consumer business gets all the buzz, its foray into business-to-
business is equally disruptive. It is believed that Amazon aspires to dominate
services like warehouse robotics, logistics, infrastructure and cashless checkout. For
small businesses, Amazon is providing a novel offering with Launchpad, a service
designed specifically for startups. One would expect Amazon to offer more
financing to new ventures which will augment various ecommerce services.

3. Home delivery and supply chain logistics:

Among the most astonishing of its patents is the creation of an "airborne fulfillment
center" where products will be delivered by drone from a blimp line contraption.
Holy crap, George Jetson. Amazon will find ways to embed technology into third-
party logistics (3PL) and freight businesses much in the way it has with Whole
Foods.

4. Artificial intelligence:
Alexa and Siri are going at it like a couple of sorority sisters fighting over who gets
to use the bathroom first. While Siri is embedded in the iPhone, Alexa offers
unparalleled access to Amazon's ace in the hole: zero-click. Zero-click will
revolutionize shopping, providing users the ability to replenish much-needed
supplies seamlessly through verbal commands. Amazon has even developed an
"Alexa Fund" for startups, targeted at game-changing AI investments.

5. Healthcare:
Amazon appears poised to enter healthcare, perhaps beginning with a bold move
into pharmacy services. With healthcare inflation unchecked, pharmacy is an
industry it could disrupt quickly. It has also joined forces with Cardinal Health and
other distributors in an effort to extend reach in medical devices to hospitals and
others.

6. Geographic expansion:
According to CITI Research, Europe has been the company's primary geographic
expansion target with international sales approaching 40 percent of volume.
However, the company will grow in emerging markets such as Asia and the Middle
East. There are opportunities for providers to position as niche players in these
markets.

7. Acquisitions:
Being acquired by Amazon would be a dream come true for many, and some will
get their wish. The company has dramatically increased acquisition activity, with 10
deals in 2017 including Game Sparks and Blink (home security). As its platform
expands, Amazon will bolt on new businesses that can leverage its backend.

Amazon focuses on making the customers happy. Their budget for advertising is
small for its size of the company, but they focus on word-of-mouth being an essential
part of their success. "If you do build a great experience, customers tell each other
about that. Word of mouth is very powerful."

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