Amazon Evalution

In: Science

Submitted By burtle24
Words 373
Pages 2
Amazon Evolution Candy Burtle University of Phoenix March 25, 2012

When Amazon realized they where only using 10 percent of its processing capability and after spending 2 billion and several years building their online infrastructure; they saw a way to make money from the unused infrastructure. The components of Amazons strategy are Simple Storage Service also known as S3, Elastic Compute Cloud, and Mechanical Turk; all three of these components are alternative methods of profit for this company. The S3 is where Amazon is basically renting out online storage on their drives, charging business 15 cents per gigabyte a month for storage use. The Compute Cloud is where Amazon rents out processing power to other businesses with a fee starting at 10 cents per hour for one basic server. The Turk uses a combination of processing of information and actual people. Companies upload the work to Turk and people pay for these services and Amazon gets 10 % commission. These three services have saved several companies lots of money in costs. In my opinion Amazon is moving from their core competency as an online retailer; focusing on being a web based global computing platform. I believe that Amazon might face issues of keeping up with the ever changing technology when other globalized companies are able to.
Amazon has addressed different components within their web based platform they are as followed:
Data - Description of activities and events that have been recorded.
Knowledge – The data that has been processed a put into order to understand, accumulate knowledge, experience, and proficiency with potential problem.
Information- Is the organized data that has a value. The combination of these three things by Amazon…...

Similar Documents

Amazon

... F1T 2012 Lindsay Taylor August 26, 2012 AMAZON.COM: AN E-COMMERCE RETAILER I. INTRODUCTION A. EXECUTIVE SUMMARY Amazon is one of the leading online companies in the world. Jeff Bezos goal when the company was started was to achieve "long-term growth, market share, and increased sharholder value" (Collins, P. , Mockler, R, & Gartendeld, M, 1 2003). With online shopping and faster internet speeds becoming more avaialble Amazon was faced by great competition from companies such as ebay. Bezos is faced with finding a way to set Amazon apart from the competion, increase market share, obtain consistent operational profits, and also find a way to prove that the company has what it takes to make it financially long-term despite the failing economy. Jeff Bezo's solution for Amazon is to offer a "business to business exchange for supplier, manufacturers, distributers, and retailers to use" (Collins, P. , Mockler, R, & Gartendeld, M, 15 2003). This would allow Amazon to use the partnerships and relatinships they currently have to expand and would also provide a steady revenue for Amazon. This online exchange between companies would not only benefit Amazon but the partners and associated affiliates as well. B. SITUATION Amazon.com was started in 1994 by Jeff Bezos. Jeff Bezos got the idea for Amazon while working at D.E. Shaw where he was assigned the task of exploring the internet and its possibibilities. Bezos found that retail books was an......

Words: 449 - Pages: 2

Amazon

...Amazon Evolution Amazon has grown from an online bookstore to an online one stop superstore. You can buy anything from books to computer components and toys on their website. They were founded by Jeff Bezos in 1994, and have grown exponentially since then. Information technology has helped them immensely along the way as this paper will demonstrate. They do everything from shopping to web-based applications involved in cloud computing for other businesses while staying true to their core competency. Amazon has appropriately evolved as a company to be successful in a high-tech environment. This company was founded in 1994 for selling books at a reasonable price. They made sure they had a good customer service to retain customers. By 1999 Amazon.com was formed, now Amazon really could reach a lot of customers due to the internet. So now they book stores and able to sell books to people at their own home, this was very convenient for customers. They did not have to leave their comfort of their own home. In 2000 Amazon opened their customer service center, this way the company could handle their customers in one location, saves on management and hourly’s. Because you have all of your staff in one location. In 2001 Amazon announces an alliance with Borders; this alliance increases inventory and variety of books they can offer on their web site. In 2003 the company expanded to sports and outdoor stores, this way they can try to gather in a new customer base,......

Words: 1887 - Pages: 8

Amazon

...Amazon Amazon is a company that is trying to lessen the impact they have on the environment. They feel that they are helping to reduce the impact convent shopping has on the environment by offering shopping through the Internet instead of going to a shopping center and they offer almost everything you can find at a mall on their web site. They also ask for customer feedback so they know how easy their products were to get out of their packaging. Amazon is working hard to cut down their imprint on the environment by asking their employee’s to help with figuring out ways to save money and packaging of products and the semi trailers. Amazon is not only working on better receiving of products, they are working on cutting down their fuel costs, their consumption of kilowatt-hours, and recycling costs. They have a team put together and this team goes around to each site to discuss how to save the environment and the company money. In Hebron, Kentucky, they found a way to load semi trailers by reconfiguring the loading process, thus they save more than $ 3 million dollars and 300,000 gallons of fuel each year (www.amazon.com). In Pennsylvania, they found that one of their sites (they have two sites) was purchasing pallets each week while their other site was disposing of pallets each week. They decided to load the unused pallets and ship them to the site that needed them thus saving the company more than $100,000 each year. In Kentucky, the team found that lights were......

Words: 624 - Pages: 3

Amazon

...January 2010.[3] Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it online in 1995. It started as an online bookstore, but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and so on. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, Japan, and China. It also provides international shipping to certain countries for some of its products. On January 15, 2009, a survey published by Verdict Research found that Amazon was the UK's favorite music and video retailer, and came third in overall retail rankings.[4] History Amazon was founded in 1995,[5] spurred by what Bezos called "regret minimization framework", his effort to fend off regret for not staking a claim in the Internet gold rush.[6] While company lore says Bezos wrote the business plan while he and his wife drove from New York to Seattle,[7] that account appears to be apocryphal.[8] The company began as an online bookstore;[8] while the largest brick-and-mortar bookstores and mail-order catalogs for books might offer 200,000 titles, an online bookstore could offer more. Bezos named the company "Amazon" after the world's largest river. Since 2000, Amazon's logotype is an arrow leading from A to Z, representing customer satisfaction (as it forms a smile); the goal was to have every product in the alphabet.[9] In 1994, the company incorporated in the state of Washington,......

Words: 6080 - Pages: 25

Amazon

...are adopting the usage of internet technologies to improve the effectiveness of the logistic activities. This paper aims to investigate the use of internet technologies at Amazon and how it manages its logistic activities. Keywords: Internet, logistic activities, E-logistics, E-commerce. Introduction: Internet connects entities to global market place. It is a computer to computer communication. The use of internet affects the success of the companies and help in developing e-logistic activities. It has a major impact on information exchange of the companies has it acts as a communication channel with which business transactions are made fast. The growing application of Internet-based systems like Enterprise Resource Planning (e-ERP); Maintenance, Repair and Operations (e-MRO); Materials Requirements Planning (e-MRP); Electronic Data Interchange (e-EDI); e-procurement and e-auctions in various parts of the world has shown that the Internet can help to provide efficiency in supply chain activities to improve the competitiveness of the companies involved (Bendoly and Schoenherr (2005); Davila et al.,(2003); Hartley et al.,(2004); Kheng and Al-Hawamdeh (2002); Muffatto and Payaro (2004); Paterson (2005); Presutti (2003); Puschmann and Alt (2005); Singer (2003); and Yang et al.,(2007)). Amazon.com: Amazon was founded in 1995 by Jeffrey P.Bezos with a mission “To be Earth’s most customer-centric company, where customer can find anything they might want to buy online”. ......

Words: 1092 - Pages: 5

Amazon

...Globalization: Amazon case Brandy Fake National University Globalization: Amazon case The purpose of this paper is to enlighten and explore globalization in a holistic manner. This paper aims to explore diverse dimensions of globalization and its impact on Amazon. Amazon.com is one of the most successful companies for selling goods and services online. This paper enlightens the changes that have been brought to the online retailer of the United Kingdom and the strategies constructed by Amazon to cope with the market’s changing dimensions. The term Globalization is broadly used as the process through which an ever-expanding free flow of goods, services, capital, peoples, and social customs leads to further integration of economies and societies worldwide. This phenomenon is hardly novel, albeit the process of integration has dramatically accelerated over the past few decades. The world has experienced successive waves of globalization (www.informationweek.com). To be ahead of the game they will have to keep up with the forever-changing times. “Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.” Amazon......

Words: 1033 - Pages: 5

Amazon

...vendor receiving more than 10% of Amazon.com, Inc.’s purchases. This is listed under “Suppliers.” Occasionally, the company is involved in claims or litigations and these amounts would be listed under “Legal Proceedings.” Listed under Stockholders’ Equity are Preferred Stock, Common Stock, Stock Repurchase Activity, Stock Award Plans, and Stock Award Activity. Amazon.com has never declared or paid cash dividends on its common stock. INCOME STATEMENT (STATEMENTS OF OPERATIONS) As listed on Amazon.com, Inc.’s income statement, Net Sales include both product and services sales. These encompass revenue from the sale of products, third-party seller fees, digital subscriptions, advertising, co-branded credit card agreements, and Amazon prime membership. Sales grew 22% in 2013, 27% in 2012, and 41% in 2011. The percentage of North American sales growth outpaced that of the International sales in 2013 (28% vs 14%), 2012 (30% vs 23%), and 2011 (43% vs 38%). Amazon.com, Inc. lists Operating Expenses as non-GAAP financial measures and lists them as with and without stock-based compensation. Cost of Sales involves the cost of products used to produce revenue. For Amazon.com, Inc. this includes the consumer products purchase price, digital content, shipping charges and packing supplies. Shipping charges are included in the inventory and noted as cost of sales. An increase in the cost of sales is a result of an increase in product costs, digital content costs, and......

Words: 6938 - Pages: 28

Amazon

...Amazon In today’s world of business having a strong structural plan and having a wide spread global foundation of customers is a couple of key characteristics for a successful business model. Amazon is one of the top tier front runners of innovation and services to customers, also they provide people a platform to build and create a business foundation through AWS. Amazon Web Services is a cloud computing platform that offers a pay as you go service to set up your operations for you current business or to even to start-up a business. This allows a business to be cost-effective with being able to increase and decrease memory storage and usage with the fluctuations of your business model, and not sacrifice huge investments with equipment. AWS and Oracle work together to provide customers applications using the AWS Cloud. These applications are ran using databases and middleware software by Oracle using Amazon EC2 which is the cloud of hardware. Using Amazon Web Services allows your business to be seen globally with tens of millions of active customers using the Amazon service. Not only are you able to be effective with your money by using this cloud computing platform but you are exposed to many customers by using this service. A couple of businesses that utilize this service include; Netflix, Instagram, Etsy, DropBox, and Spotify. Even some big name Enterprises such as Samsung and NASA use this platform for their business functions. The beauty of this service is that the......

Words: 608 - Pages: 3

Amazon

...and 2014 update I’ve used Amazon as a case study in my books for over 10 years now since I think all types of businesses can learn from their digital business strategy. From startups and small businesses to large international businesses, their focus on the customer, testing market opportunities made available by digital technology and their focus on testing and analysis to improve results. I aim to keep this case study up-to-date for readers of the books and Smart Insights readers who may be interested. In it we look at Amazon’s background, revenue model and sources for the latest business results. We can also learn from their approach to digital marketing since they use digital marketing efficiently across all customer communications touchpoints in our RACE marketing planning framework: * Reach: Amazon’s initial business growth based on detailed approach to SEO and AdWords targeting millions of keywords. * Act: Creating a clear simple experiences through testing and learning. * Convert: Using personalisation to make relevant recommendations and a clear checkout process that many now imitate. * Engage: Their focus on customer experience, “Customer Obsession” as they call it  is shown by the way they consistently outperform other retailers in their ACSI customer satisfaction rating too. We have our own internal experimentation platform called “Weblab” that we use to evaluate improvements Experiments and more experiments! Amazon have created their own......

Words: 696 - Pages: 3

Amazon

...discuss how Amazon has been able to stay so successful with new and upcoming competitors. In addition to discussing the success, the struggles will be evaluated as well as ways to improve the company. When visiting Amazon, you can get several of your products at one time; it is a one stop shop type of deal online. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Over the past year Amazon has seen growth along with struggles. Financially they have seen an increase in their business. Amazon has expanded their business pretty rapidly over the past fifteen years and they are still trying to expand further. In November of 2010 Amazon signed agreements to acquire Quisdi, Inc. and LOVEFiLM International Limited (amazon.com). They expect that these acquisitions will close in 2011, because of regulatory approvals and closing conditions (amazon.com). When acquiring other companies Amazon should be more careful, because the immediate effect of receiving the cash is good for the company but the long term effect of losing the acquisitions is more dangerous for the company. Another sector that Amazon wants to continue to grow is the international market. When doing business internationally it is important to know each countries exchange rate as this can have a positive or negative impact on the company. One new partnership has been successful for Amazon is the......

Words: 1610 - Pages: 7

Amazon

...SWOT Analysis Amazon Strengths * Customer Relationship Management (CRM) and Information Technology (IT) support Amazon’s business strategy. The company carefully records data on customer buyer behavior. This enables them to offer to individual specific items, or bundles of items, based upon preferences demonstrated through purchases or items visited. * Amazon is a huge global brand. It is recognizable for two main reasons. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. It was an early exploiter of online technologies for e-commerce, which made it one of the first online retailers. It has built on nits early successes with books, and now has product categories that include electronics, toys and games, DIY and more. Weaknesses * As Amazon adds new categories to its business, it risks damaging its brand. Amazon is the number one retailer for books. Toy-R-Us is the number one retailers for toys and games. Imagine if Toys-R-Us began to sell books. This would confuse its consumers and endanger its brands. In the same way, many of the new categories, for example automotive, may prove to be too confusing for customers. * The company may at some point need to reconsider its strategy of offering free shipping to customers. It is a fair strategy since one could visit a more local retailer, and pay no costs. However, it is rumored that shipping costs could be up to $500m, and such a high figure would...

Words: 1456 - Pages: 6

Amazon

...1. How has Amazon used technology to revamp the bookselling industry? Ans: Amazon starts sellings books online which helps customers to save time. Otherwise, customers have to search in different stores which takes lots of time. 2. Is Amazon using disruptive or sustaining technology to run its business? Ans: In my opinion Amazon is disruptive technlology because it is easier to use and people have minimize the use of older version. 3. How is Amazon using intranets and extranets to run its business? Ans: Amazon helps its employee to perform their jobs, find the information and communicate with each other. Similarly, it uses extranets to link with third party providers who are interested in selling products. 4. How could Amazon use kiosks to improve its business? Ans: Amazon brings out a free website where partners can create, access to data, populate and even start a checkout process. That’s what help them in improving. 5. What is Amazon’s e-business model? Ans: Amazons e-business model is business to customer where it sells its product to customer via internet. 6. How can Amazon use m-commerce to influence its business? Ans:M-commerce provides the facility to buy product to the customer through their hand-held applicants. Using this m-commerce customers can search and buy amazons product form anywhere and they can even make a purchasing descision. 7. Which metrics could Amazon use to assess the efficiency and effectiveness of its website? ...

Words: 340 - Pages: 2

Amazon

...Amazon Evolution Amazon.com is one of the largest online retailers; in recent years, Amazon has shown its intention to broaden its core competency to become a more diverse online retailer by adding computing and storage services to its product base. The team will address whether Amazon’s strategy is a good one and describe how Amazon uses each component of a database. Also review the data management issues encountered by Amazon, share how Amazon addresses the relationship between data, information and knowledge, and last, describe how Amazon uses both e-business and e-Commerce for B2B and B2C. Components of a Database and How Amazon uses each Databases involve four different aspects: tables, forms, queries, and reports. Tables are a group of rows and columns that make up the entire database. They are made of information that can be entered, edited, stored, and reviewed (Mickey, 2005). Amazon uses tables to keep records of users and sales. For example, Amazon would use tables to keep records of a user’s credit card number, address, age, and a record of purchases and sales made by that user. This information would is kept in the Amazon’s database to track what kinds of purchases and sales the user makes and to deliver the products to the user. Forms are used to enter, view, and edit data (Mickey, 2005). According to Chris Cruikshank (1999), the form should have some form of validation so that the user cannot enter rubbish onto the database. Numbers must store numbers;......

Words: 1316 - Pages: 6

Amazon

...Amazon, founded by Jeff Bezos in 1994, has quickly become one of the most valuable retail stores in the US and is looking to expand even further. It initially started as an online bookstore, but with Bezos’ vision to become a dominant retailer, has expanded its services with fulfillment centers, Amazon Prime, and AmazonFresh. Within the past two decades, customers can find almost anything sold through Amazon from diapers to computers. Bezos’ continues to focus on innovations to drive lower prices, and faster delivery by improving operations, infrastructure, and programs to meet customer demands. The initial Amazon headquarters began in Jeff Bezos’ garage. Bezos’ took into consideration low cost products that was easy to sell on the internet. The cost of selling books was relatively low in comparison to other items and there was demand. Customers were able to search for any type of book ranging from textbooks or hard-to-find book from anywhere in the country while sitting in the comfort of their own home. The shopping experience was easy, offering price comparisons of different merchants selling the same item. Customers were also offered the option to purchase new or used books based on their preference or the amount of money they would like to spend. Overall, it was simple, easy, and secure. However, Bezos was going to take it even further. He wanted to offer customers a portal to buy anything. Bezos took the online book selling experience and grew it to offer customers......

Words: 1034 - Pages: 5

Amazon

...Project Question: What has made this company successful? Provide detail as to the company’s global strategy. Amazon was founded in 1994. Amazon Inc. is the world's largest ecommerce retailer. The company currently employs more than 43,200 people in 18 U.S. states and 14 international locations. Its headquarters are in Seattle, Washington. On Amazon.com, consumers can purchase anything from books, movies, video games, to, clothing, and even automotive parts. Founder Jeff Bezos started selling only books on Amazon.com in 1995. Bezos shipped his goods to consumers from his garage. In 2007, Amazon made it big when it came out with the Amazon Kindle. There are over more than a million books, newspapers and magazines available for purchase on the Kindle, Kindle Touch and Kindle Fire. Bezos believes that everything takes time. Bezos makes a statement on Forbes, “Just by lengthening the time horizon, you can engage in endeavors that you could never otherwise pursue. At Amazon we like things to work in five to seven years. We’re willing to plant seeds, let them grow—and we’re very stubborn. We say we’re stubborn on vision and flexible on details”. The goal of Amazon is to move quickly to solidify and extend our current position while we begin to pursue the online commerce opportunities in other areas. Amazon sees substantial opportunity in the large markets they are targeting. Amazon always seeks long term and never rushes situations. They look for Market leadership because it can......

Words: 597 - Pages: 3