amazon.com inc retailing giant to high-tech player Case Solution
Historical and Current Information
Amazon was founded by Jeff Bezos in 1994 with thevision of becoming like a natural phenomenon. However, before its diversification it was only an online bookseller company that sold its first book on themarket in 1995. Similarly, the company started to offer 1 million books online to subscribers over membership.
However, due to its tremendous growth in the market, it went to offer its initial public offering in 1997.On the other hand, company started to diversify its offerings in the market through various products that it sold online to customers, provided online platform for the small business enterprises, and retailers to sell products online through utilizing amazon’s web services that it started to offer all retailers at various types of options, that were cheap and reasonable for the retailers in the market.
Beyond company’s own offerings, it went on offering online services that contributed to thehuge success of the company.Meanwhile, the company’s important factor that contributes to its huge success was it's online retailing services, and the customer services online. Where, Amazon has been continuously focusing, and collecting data through various ways like customer’spreferences, interest, and their purchasing history.
So, Amazon used data to show selected products to the customers as per theirpreferred or recently searched items, or they have aninterest in thoseproducts. Indeed the customers were shown the products that were related to or those that they had recently searched or similar products that have already been purchased by other customers.
Furthermore, Amazon tightened their customer base to connect with Amazon more often. They did not allow to create avacuum in the market that could have been a potential opportunity for the competitor in the market that could have tocreate asignificant challenge in the market. Hence, Amazon customized its business model that bestfits the market and attracts the customers in the market.
Consequently, the Amazon started to sell various categories of products online like DVDs VHS, and blue-ray discs, and other products that havebeen offered by the retailers at the website of Amazon. Similarly, it also provided the convenience in payment methods that reduced the burden on the retailers, and Amazon gained more confidence of the retailers.
Meanwhile, the Amazon charged its fees on the profit per product sold online.Moreover, the amazon’s vision was clear to become a real Amazon retail market on the face of earth whereas the company was in pursuance of the mission that it needed to become a potentially low cost online retail company worldwide.
Therefore, thecompany acquired many other competitors and formed strategic alliance partnerships to increase the market share by competing with the largest competitors in the market.Therefore, Amazon successfully diversified its products category online at lower costs than the competitors has been offering to the market to diversify its customer's mix. Similarly, in 2007 company successfully launched its product in the market.
Kindle fire, which was an electronic reader that allowed to subscribe customers to have access to the books by rental. It boosted the sales of Amazon and challenged the market share of the Apple in the market. The product was also used for various purposes such as other features of the market competitor’sproducts.
Therefore, through 2010, amazon’s net sales were from books, music, DVDs/Video products, digital downloads, video games, magazine subscription, and other electronic items, and general merchandise from home and garden supplies to groceries, apparel, jewelry, health and beauty products, outdoor equipment, sports products, and auto industrial supplies as well.
Through its diversified portfolio of the products, thecompany offered its credit card with theassociation of Chase bank. Similarly, it became company’s core competency in that market to compete against the market players.Meanwhile, amazon’s web services and acquisition of key players in the market allowed entering the international market efficiently to gain the market share.
Similarly, its vision to become a natural phenomenon meant offering products at lower cost,online availability of everything with easy access and with same day delivery service in the USA.This is almost about r to befulfilled as Amazon is becoming an online retailer having apresence worldwide withahuge category of products being offered.
The corporate governance committee is responsible for heading the things at theboard. However, the board of the directors in Amazon are selected and elected by the existing members over the request of the committee. However, the performance of the board of directors is measured by the committee to re-elect or re-select them.
Similarly, the performance of the CEO is measured by the independent directors, and they set the compensation for the CEO and other executives of the company as per their performance.The chief executive officer of the Amazon since 1996 is Jeff Bezos, who is also owner and chairmen of theboard.(Barenson, 2017) Similarly, it has had seven senior vice presidents. See Table 1. Board of directors in the company are independent and are selected and re-elected by corporate governance committee.............................