Free Essay

Amazon and Border

In: Business and Management

Submitted By risaknight
Words 1690
Pages 7
Amazon & Border Books
Risa Knight
Professor Alethia R. Gardner
Business 302: Management Concepts
July 26, 2012

Amazon & Border Books The Defense Department created the Internet to keep its computer networks connected during an emergency due to national disasters or enemy attacks. Over the years academic researcher and the government adopted the internet and used it to exchange data and messages. Jeff Benzo’s realized that the internet usage was increasing by 2,300 percent a year. These numbers made Benzo recognize an opportunity for a new business. Jeff Benzo reviewed 20 mail order businesses and he asked himself which could be conducted more efficiently over the internet? Books were the only commodity that mail order catalogues did not exist, because the catalog would be too big for mail; making the selling of books perfect for the internet. Benzo flew to Las Angeles to attend the American Booksellers Convention so that he could learn everything about the book business. Benzo then had to find a location on the internet where people could buy the books by searching what was available and in stock and place their orders. Benzo then made the decision and sacrifice to leave his job in New York and move to Seattle where he could have ready access to the books wholesalers Ingram and the access to the computer talent that he would need for his new enterprise (Spiro, 2009).
He opened his business out of his garage in his Seattle home which Nick Hanauer who believed in Benzo’s idea invested $40,000; Benzo then asked 300 friends and associates to help him test the site. Once the site was up and running, on July 16, 1995, Benzo told his 300 beta testers to spread the word around. With no press and just word of mouth, Amazon.com sold books in all of the 50 states and in 45 foreign countries in 30 days. Within two months his sales was up to $20,000 a week. Amazon’s first attempt was difficult because the website was, boring, plain, and it didn’t attract the customers. Amazon needed more funding, so in 1995 Tom Alburg invested $100,000 into Amazon. Benzo and his team came up with a way to make the website flashier with new hosting capabilities such as one click shopping, customer reviews, and e-mail order verification (2010). Bezos also knew that in 1992 the Supreme Court had ruled in Quill Corp. v. North Dakota that retailers were exempt from charging sales tax in states where they didn’t have a physical presence. (For years, he would use this advantage to avoid collecting hundreds of millions of dollars in state sales taxes, giving Amazon an enormous edge over retailers of every kind, from bookstores to Best Buy and Home Depot. In recent months, however, Amazon, under mounting pressure, has eased its opposition and reached agreements with twelve states, including California and Texas, to collect sales tax (Wasserman, 2010). This was the first time that people can buy books, share your thoughts and book reviews on an online community bookstore (Jeff Bezos Biography 2010). Border Books was founded in Ann Arbor in 1971 by brothers named Tom and Louis Borders. They opened the book store serving the University of Michigan and other smaller colleges; eventually becoming a popular neighborhood hangout. Over the next several years the brothers opened two more bookstores in Michigan, one in Atlanta, and another in Indianapolis. The brothers also started a wholesale business calling it BIS (Book Inventory System). In 1985 the brothers opened its first prototype retail store, shifting sales from small indoor-mall based chain stores and independent booksellers to a new chain superstore. By 1988 with five Midwest book stores, and BIS service numbering 14 bookstore clients; their enterprise was bringing a net income of $1.9 million from sales of $32.3 million. Tom and Louise wanted to make borders a national name, so in 1988 they put a man named Robert DiRomualdo as the president and chief executive. Sales grew to $59 million for the top two superstore chains with only 31 units in 1989, to nearly 1.4 billion by 1994 from 350 units. DiRomualdo opened 14 new stores in the next three years making Border’s a household name in the Midwest. By 1992, Borders had quadrupled its size. Kmart had bought Waldenbooks and wanted to expand its book retailing. In October 1992 the Border brothers sold their business but remanded investors, and Border’s became a wholly owned subsidiary of Kmart. By 1993 sales reached 224.8 million, a 15.8 percent increase in net sales over previous years. Waldenbooks and Boarders formed a new company called Borders Group Inc. in August of 1994 with plans to break free from Kmart. By 1994 the Group’s reached its overall sales to 1.5 billion possessing the highest sales-per-foot by ratio in the industry, and can also track popular titles by selling season. Borders had identified as many as 55 separately defined seasonal patterns and programmed these into the computer system to keep better track of seasonal and regular bestselling titles, and to help maintain a supply of such titles with little or no interruption in prospective sales (Borders Group, Inc.2002). When Amazon was launched on the internet in 1995, Barnes & Noble jumped on the bandwagon two years later. Borders waited an additional year after Barnes & Noble causing the companies decrease in revenue and quickly losing tens of millions of dollars. Even though the internet was booming, Border’s continued to build huge stores of 25,000 and 30,000 square feet. The sales per-square foot plummeted from average of 261 in 1997 to 173 by 2009 (Austen, 2011).
Amazon was now a billion dollar company by 1999, but success in revenue began to decrease in 2000. Amazon.com reported a fiscal loss of $11.4 billion. This caused the company to lay off over 200 workers in the last year. By the beginning of 2001 Amazon laid off over 1000 worker cutting out expenses and restructuring the business model.
Amazon also was in the market of selling CDs, music, videos, toys, electronics and more. In October of 2002 the firm added clothing sales to its line-up by partnering with hundreds of retailers. Amazon also landed an online sporting goods store offering 3,000 brand names; Amazon.com had an annual sale of over $10.7 billion. Benzo came up with the idea to recruit other companies to sell their products online. This would give Amazon a part of the profit without being responsible for inventory through these companies.
In 2001 Border Book and Amazon partnered up outsourcing Border’s online sales. Border’s assumed that by partnering up with Amazon to run the internet, it will give them a chance to focus on running the physical stores. The big mistake for Border was that they did not end its deal with Amazon soon enough, and Borders did not launch its own website until 2008. But by the time it was launched it was too late, because Amazon had consumed the online market share. During 2006 most of Border’s revenue came from music sales; unfortunately, this was their last year to see a profit. Border’s invested highly in CDs and DVDs when music and video were going digital.
Amazon came up with the Kindle in 2007, and Barnes & Noble a year later created the Nook e-book, and Borders did nothing. Eventually Borders decided to get into the e-book business, but Borders were financially in the red and had to outsource their problems with Kobo; a Canadian e-reader company who didn’t start selling their product until 2010 (Mataconis, 2011). On February 2011, Borders filed a Chapter 11 because they could not compete with Amazon when the market shifted to online. Borders management failed to capitalize on sales opportunities created by the Internet. Borders also built too many superstores causing revenues to decrease tremendously, and they failed to develop an electronic book strategy (Tice, 2011). To secure your business and to build flexibility it is important to take advantage of the opportunities in the market that are rapidly growing. Organizations must ensure cost reduction initiatives making sure it doesn’t impact the organizations ability to capitalize on new opportunities for growth. The company has to establish the right balance between adaptability, agility, and stability in their operating model, cost structure and processes. Adaptability is important, because technology, customer demands, and market place changes quickly. Agility allows companies to enter into new markets quickly and efficiently, it is important to make these changes without compromising stability. Companies with greater transparency and control over their expenditures have the agility to scale activity up or down rapidly to meet varying market conditions. This means that management and the finance department must have long-term vision and understand the real value of each part of the business. At the same time, it is important to improve governance procedures and be more transparent in reporting to retain stakeholder confidence (Ernest & Young, 2011).

References
Austen, B. (2011). The end of borders is not the end of books. Bloomberg Businessweek, (4254), 94-97
Borders Group, Inc." International Directory of Company Histories. 2002 Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-2844700026.html
Ernest & Young (2011) Operational agility from supply chain to integrated value chain growing beyond http://www.ey.com/Publication/vwLUAssets/Operational-agility-adapting-quickly-to-changing-conditions-2011/$FILE/Operational-agility-adapting-quickly-to-changing-conditions-2011.pdf
Jeff Bezos Biography Aug 09, 2010, Founder and CEO, Amazon.com http://www.achievement.org/autodoc/page/bez0bio-1 Mataconis, Doug Friday, July 22, 2011. Capitalism, Creative Destruction, and the End of Borders Books http://www.outsidethebeltway.com/capitalism-creative-destruction-and-the-end-of-borders-books/
Spiro, Josh October 23, 2009. The Great Leaders Series: Jeff Bezos, Founder of Amazon.com http://www.inc.com/30years/articles/jeff-bezos.html
Tice, Carol, July 21, 2011. What Entrepreneurs Can Learn from Borders' Demise http://www.entrepreneur.com/blog/220042
Wasserman, S. (2012). The Amazon Effect. Nation, 294(25), 13-22.

Similar Documents

Premium Essay

Amazon vs. Borders

...Amazon.com and Borders Books Professor Business 302 Management Concepts Week 4 Assignment Angela Reed Amazon Amazon is a Fortune 500 company; it is the largest online electronic retailer in America. Amazon is credited with popularizing online shopping. Amazon.com considers itself a completely customer centric company, its company values statement is: * Customer Obsession: We start with the customer and work backwards. * Innovation: If you don’t listen to your customers you will fail. But if you only listen to your customers you will also fail. * Bias for Action: We live in a time of unheralded revolution and insurmountable opportunity - - provided we make every minute count. * Ownership: Owners matters when you’re building a great company. Owners think ling-term, plead passionately for their projects and ideas, and are empowered to respectfully challenge decisions. * High Hiring Bar: When making a hiring decision we ask ourselves: “Will I admire this person? Will I learn from this person? Is this person a superstar? * Frugality: We spend money on things that really matter and believe that frugality breeds resourcefulness, self-sufficiency, and invention! Amazon was founded in 1994 by Jeffrey Bezoes; the website was launched in 1995. It began as an online bookstore, it has grown to sell many other products, such as: clothing, gourmet food, watches, jewelry, baby products and apparel, beauty products, sporting goods, music CD’s, DVD’s,......

Words: 1227 - Pages: 5

Premium Essay

Amazon vs Borders

...Envisioned by its company founder and CEO Jeff Bezos since 1994 as "Earth's most customer-centric company" Amazon.com today, with more than 17 million customers and over a billion and a half dollars in annual sales, stands as the world’s largest E-commerce E-tailer. Named after the Amazon River, one of the largest and most exotic rivers in the world, Amazon.com started as an online bookstore but quickly diversified its selling efforts to DVDs, CDs, MP3 downloads, computer software, video games, electronics, apparel, furniture, food, and toys with the aim, as implied by its logo “A to Z with a smile,” to attain customer satisfaction and carry every product from A to Z. Although it was a slow starter, not showing a profit for the first five years, and enduring the dot-com burst, Amazon.com persevered and now profitable it is recognized as having popularized online shopping (Schneider, 2011). Without any experience in the business of selling books, Jeff Bezos realized that the books had a great potential shipping profile for online sales. Always believing in the economic network effects, he decided to setup his company in Seattle, WA, very close to the largest book distribution warehouse and talented computer programmers in the U.S. According to a quote that Bezos said in an article publicized in U.S. News, “While we're crossing the desert, may we be thirsty, but we sincerely believe there’s an oasis on the other side" (Jeff Bezos, 2008, "Living on the Edge, "para. 6), Bezos......

Words: 2265 - Pages: 10

Premium Essay

Amazon vs. Borders

...Amazon vs. Barnes and Nobles vs. Borders Allison Foster Instructor Steven Brown BUS 508 – Business Enterprise April 30, 2011 Week Four Originally named “Cadavera”, Amazon was founded by Jeff Bezos in 1994. The purpose of this company was to provide the largest online bookstore ranging from compact discs, books to electronics and apparel. Amazon made it’s own individual mark in 1994 when the owner created a business plan that had no predicted profit for the first four years. According to (wikipedia.com), by the year 2001 Amazon turned a five million dollar profit. The Pros and Cons of the Amazon Business Today Amazon has grown more than just the worlds largest bookstore. Amazon created many different entities such as; Amazon Marketplace, Amazon Fresh Market, Amazon MP3, Amazon Payments, Amazon Prime, Amazon Kindle, and Amapedi. Amazon.com is also eco friendly by promoting the Go Green campaign. This company partners with American Red Cross and raise funds for national and environmental disasters such as Hurricane Katrina, Hati Earthquakes, and 9/11. Although Amazon.com has grown to be successful, the company still endures advantages and disadvantages of diversification of business and specialization. Advantages of Amazon.com are the business to consumer relationships, vast amount of diverse product selections, low cost of merchandise, convenience, personalization, and free delivery . Over the years, Amazon has dominated the e-business and......

Words: 996 - Pages: 4

Premium Essay

Amazon vs Borders

...customers because they can order products wherever they are, and they don't have to deal with things like traffic, parking spaces and useless trips when items are out of stock. Consumers can also compare information about different or competing companies more easily because information, Companies can also stay in touch with their customers and suppliers by creating web pages and setting up internet addresses to receive e-mail from customers worldwide. Amazon is an American multinational which was founded by Jeff Bezos in 1994 and based In Seattle, its Main activity is online trades as books, DVDs, CDs, MP3 downloads, computer Software, video games, electronics, apparel, furniture, food, and toys. The company has sites For many countries (United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and China) and is planning to open new sites for other countries. Amazon began to grow fast since 1998, at this period it wasn’t no more a small online book seller, nevertheless, Amazon faced big losses to grow up fast and was exposed to threats from other competitive companies . The first year the company made profit was 2004, before that stock-holders complained because they were not making any profit but after many...

Words: 1153 - Pages: 5

Premium Essay

Amazon vs Borders

...Describe the history and core business of each company. Amazon was founded in 1994 by a man whose name is Jeff Bezos. Mr. Bezos originally started Amazon in his garage. He believed that only the internet had the ability to grant consumers the convenience of being able to browse a myriad selection of book titles in the shortest amount of time. In 1995 he started the website Amazon.com which was primarily an online book store at the time. “During the first 30 days of business, Amazon .com fulfilled orders for customers in 50 states and 45 countries- all shipped from his Seattle-area garage” (Overview, n.d.). In Two years later in 1997 Amazon went on to become public being listed on NASDAQ under the trade symbol of AMZN. Since then Amazon has expanded its consumer base by adding multiple products, features, and upgrades. The company now employs over 43,200 employees worldwide and is considered a world-class e-commerce platform. Borders bookstore was founded in 1971 by two brothers by the name of Tom and Louis Borders while they were attending college at the University of Michigan. Borders bookstore was once a leading retailer of books and educational items with stores located throughout the United States, Australia, and Puerto Rico. In 1984 Kmart acquired a company by the name of Waldenbooks and in 1992 Kmart acquired Borders only to merge the two in hopes of generating greater sales (Borders Book Store, 2011). In 1997 Borders launched its first international store in......

Words: 1665 - Pages: 7

Premium Essay

Borders vs Amazon...

...Borders was begun by two brothers who where University of Michigan students. Their concept was ahead of it’s time “mega” was not a buzz word when the original store opened in Ann Arbor. The brothers had a great idea for its customers to come to a different kind of bookstore that would offer any and every book imaginable. Borders Books (aka Borders Group) was opened in 1971 by the Border brothers, Tom and Louis, two University of Michigan students. The first location was in Ann Arbor, a book store that would have the best selection of books around. That was a good start but they also came up with the masterful “BIS” (Book Inventory System), this was later sold to other vendors to help them with their inventory processes. Let’s not forget their “superstore”concept and their use of the “location, location, location” tactic as well. Amazon.com is the brainchild of Jeff Bezos and came to be more than a decade later in 1994. One sharp comparison, Amazon was never a brick and mortar location. It has always existed online exclusively. Borders had the cozy reading nooks, overstuffed chairs, coffee… all the things to make you want to stay and read awhile. Somewhere along the line the two took very different paths, one ending in demise and the other ending in megamillions in profits. Borders seems to have taken a change management approach instead of the change of leadership approach. Borders “fought to the end” but to no avail. (Edwards,...

Words: 253 - Pages: 2

Premium Essay

Border vs Amazon

...Identify the potential barriers you will face during the change process. Border’s lack of technology has kept the company from taking flight during an era that technology rules. Borders demise was caused by management errors. There are many potential barriers Borders will be facing. The company will now have to hire new CEO’s and supervisors in different department areas. It’s not an easy task to hire knowledgeable individuals with the drive to revamp a company and impede failure. Another barrier facing borders would be adapting employees to the new management and their strategies. All the employees need to be onboard with the changes that will be occurring, because if not then Borders can face dissention within the staff. Some staff member’s can cause resistant to changes, communication would have to be the key to fixing this resistance. Employees would need to know their roles and responsibilities, and a timeline. A timeline is critical, and if not implemented can be difficult during the transition process. There’s also planning. Without step by step planning, the organization can face even greater barriers, because it needs to understand the changes that need to take effect and how will they occur. These barriers would have to be overcome in order for the progress of Borders. Evaluate the power and political issues within the organization and describe how you will address these issues. With new management the Organization will be weak. Restructuring a company always has...

Words: 554 - Pages: 3

Premium Essay

Comparing Two Similar Businesses

...core business of each company. Amazon is considered one of the biggest retail internet companies of today.It is a plain and simple site that attracts an online community. Amazon opened for business July 16, 1995 by a young man named Jeff Bezos. It started out as nothing more than a few people packing and shipping boxes of books from a two car garage in Bellevue, Washington. The books were ordered on line then packaged and mailed away. Today, Amazon is one of the largest retail online companies in the world. Amazon started out as a only having books on sale to being able to purchase items ranging from music CD’s, to clothing. The best thing about Amazon would be the price of the products/ items. Many of the items are sold cheaper on Amazon than in a local retail store. Amazon has grown to be the easiest way of shopping online. Amazon’s core business is definitely good as well as keeping their promises. It has grown from books to products in over 30 categories but the business model are intact. Amazon’s goal is to attract customers with a competitive, cheap retail service that would be hard for any other retail store can compete. Amazon also offers many discount prices, is easy to navigate through for shopping, and has a quick, easy way to checking out. Due to the great shipping charges, great turnaround for shipping merchandise to the customers, and great prices, Amazon has and will continue to be the biggest online retail company. Amazon is one way for customers to......

Words: 1514 - Pages: 7

Premium Essay

Comparing Two Similar Businessess

...Assignment 1: Comparing Two Similar Businesses Amazon and Border Books are in the same industry and are very similar and comparable; however both companies have different history and core aspects of their business. Beginning with Amazon, Amazon was founded by Jeff Bezos in 1994. The company was funded by two investors; Nick Hanauer (invested $40,000 in 1994) and Tom Alburg (invested $100,000 in 1995). Originally, the company was run out of Bezos garage in Washington. Once Amazon was introduced online, the website was not as enticing and graphic it was rather dull and plain (this caused the business to start on uncertain ground). However, once Tom Alburg joined the company, he invested a lot of money is updating the Amazon website. Shortly after, Amazon had customers from all over the world. In addition, after that milestone was met, Bezos decided to expand his business into more than just an online bookstore to promote returning customers. In turn Bezos opted to allow customers to rate and review books on Amazon. In 1997, Amazon went public in which in the same year the company broaden its market by add CD’S, and movies to be purchased and reviewed. Moreover, in 1998 the company added software, electronics, and video games to the roster. At the end of 1999, the company was extremely profitable; however in 2001 the company experienced a fiscal loss of 1.4 billion and lay off 1000 workers. Amazon utilized the analyzers strategy (a blend of the defending and prospective......

Words: 1667 - Pages: 7

Premium Essay

Business Approaches, Management, and Marketing:

... and Marketing: Amazon.com vs. Borders Books BUS 302: Management Concepts April 29, 2012 Jeff Bezos, former vice-president of D.E. Shaw, founded Amazon.com in 1994. After reading an article that forecast an annual Web growth of 2,300 percent, Jeff Bezos decided to make Amazon.com’s headquarters in Seattle, Washington. Seattle, Washington was a hot spot for the rapidly growing high tech work force. Bezos had a hard time finding initial investors, because he did not project a profit for the first five to six years of the company’s formation. Bezos startup funds came from family and friends, he ultimately raised one million dollars for his initial capital. Amazon.com started its operations in Bezos garage selling books, but quickly grew to the Amazon.com we know today. Amazon.com sells DVDs, CDs, furniture, jewelry, electronics, software, video games, toys and even food. Amazon.com sells its products all around the world and can reach any consumer that has an interest connection. Borders, or Borders Group, Inc., started out as a single used bookstore in Ann Harbor, Michigan. Borders was founded by Louis and Tom Borders in 1971. In 1975, Louis and Tom bought out stock of Wahr’s an eighty year old bookstore that was closing its doors and moved their store to a much larger location. Borders was bought out by Kmart in 1992. Kmart tried to expand Borders into Canada, but failed because regulations could not be met. Borders did manage to expand......

Words: 1648 - Pages: 7

Free Essay

Bus 302 Assignment 1

...“Amazon.com and Border Books” Submitted by xxxxxxxxxxxx Bus 302 xxxxxxxxxxxxxxx 05-13-12 Amazon.com and Border Books History Amazon.com is a Fortune 500 e-commerce company based in Seattle, WA. It was started by Jeff Bezos in 1994. He started this business out of his garage in Bellevue, Washington. Initially he was able to fund his new venture from Nick Hanauer who provided the first investment of $40,000. A second investment of $100,000 from Tom Alburg was what the company needed in order to become more user friendly. During the first month of business, Bezos was able to fulfill domestic as well as international shipments to more than 48 countries. Amazon was one of the first big companies to sell goods over the Internet. Amazon serves a worldwide audience. Its website was launched in 1995 and is available in English, Chinese, French, German and Japanese. Amazon began as an online bookstore. This gave it the advantage of having more titles than the traditional brick-and-mortar stores. It has since grown way beyond this to sell all kinds of products. Amazon has branched into clothing, gourmet food, watches, jewelry, baby products and apparel, beauty products, sporting goods, music CD’s, DVD’s, video tapes, home appliances and electronics. In September 1997 Amazon.com opened an East Coast distribution center in New Castle, Delaware. This expansion improved and also increased the ability of the company to stock and ship......

Words: 1420 - Pages: 6

Premium Essay

Comparing Two Companies

...Strayer University August 12, 2011 Abstract In comparing, Amazon.com and Borders Books, two of the most prominent sources of literature within the industry at one time offering a great selection of reading material for students and avaricious readers. For 40 years Borders Books served the public with establishing 659 stores at the height of their success but after years of debt the struggling company could not withstand the changing times and competitive market. Meanwhile, Amazon survived the worst of the struggling economy and competitive market at its peak during hardship. Amazon a fortune 500 company with many other diversified items to greater serves the public and its loyal customers. In times of adversity and economy failure Amazon found ways to adapt to the changing conditions of the market, contemporaneously Borders went on a downward spiral and never recovered. Introduction The history of Amazon and Borders Books goes back to times of great success at the height of competition in online shopping. Realizing the popularity of online shopping Amazon started changing with the time, which was the differences between them and Borders because paperbacks were becoming obsolete just like everything else within society after the Internet. Amazon one of the first big companies to sell books over the Internet in 1994 quickly diversified with numerous other items (Schneider, 2011). Borders management did not see the need to change its structure to......

Words: 1368 - Pages: 6

Premium Essay

Comparing Two Similar Businesses

...Amazon and Borders book history and the core business of each company will be discussed with a look at the comparison of the companies view point on management approach to Internet marketing and sales. You will read reasons for Amazon’s success and Borders demise. The emphasis will be on each company’s adaptability to the markets changing conditions and recommendations a company should build in flexibility to back decisions to adapt to these market changes. Let us start with a timeline of Borders Books which was founded in 1971 by Tom and Louis Borders. Two brothers opened an 800-square-foot used bookstore and called it Borders Book Shop located at 211 S. South State St. in Ann Arbor Michigan. Borders had eight CEO’s over its 40 years. Starting in 1988 when Borders recruits Robert DiRomualdo to lead the company's expansion. DiRomualdo is later credited with leading the company's rise to national prominence in the 1990s. The highest point of Borders was in the 1990’s under DiRomualdo’s leadership as CEO, the company started integrating music and movies into some of its stores. In 1992 Borders chooses not to go public but rather to allow Kmart Corporation acquire them and in 1995 the book store chain, renamed Borders Group Inc., spins off from Kmart and goes public on the New York Stock Exchange. At the time, Borders' innovative inventory management system was considered "the envy of the industry". The 1990’s Borders adds 52 superstores in the biggest one-year expansion in......

Words: 2441 - Pages: 10

Premium Essay

The Success of Amazon

...The Success of Amazon Fully discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and recommendations about what Amazon could have done differently Amazon.com was founded in 1994 as online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon completes in a vast array of markets including: books, movies, digital readers, computers, electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand. Amazon has grown and evolved with the growth of the internet. They market their website to an audience that is typically tech. savvy and educated which typically means that their clientele have the money to spend on their products. One of the biggest pros to Amazon’s diversifications strategy is that they have created a one stop shop that offers almost anything that a person is looking for and have been widely successful. Amazon has made it supper easy for anyone to get started with making money online. The products are easy to find, and the ads are easy to incorporate into any blog or website. And the best part is that they even provide you with step-by step instructions on how to do it. Amazon allows you to open up to 100 Amazon stores which you can link to from......

Words: 1340 - Pages: 6

Free Essay

Student

...thousands of other items. Jeff Bezos founded Amazon.com in 1994. Originally the business was based out of his garage in his Bellevue, Washington home. A businessman by the name of Nick Hanauer believed in Bezos' idea and decided to invest $40,000 in the venture. When Amazon first decided to go online, its layout was not as flashy as it is today. In fact, the site looked very plain and unattractive to most visitors, causing the business to start out on shaky ground. At the end of 1999, Amazon had raked in over a billion dollars in sales. It seemed as though the profit would never cease. However, in 2001, Amazon reported a fiscal loss of $1.4 billion, and had laid off over 200 workers in the last year. The beginning of 2001 found Amazon laying off even more workers, totaling over 1000. Instead of giving up, Bezos had an idea: recruit other companies to sell their products online through Amazon as well. The idea worked. Companies such as Target, Toys R Us, Old Navy, and many others have agreed to sell their items through Amazon. Although Amazon is not directly responsible for inventory through these companies, they do get part of the sales, creating a profit for all involved. Since the inception of the idea, Amazon is now back on its feet and remains one of the most popular online vendors in the...

Words: 1924 - Pages: 8