Amazon: A Great Company That Has Everything

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Amazon: a great company that has everything

Introduction

Amazon s.L. (LIMITED COMPANY) It is a company originally from the US. UU., Its main market is electronic commerce together with cloud computing services. The city of Seattle is based in the American state of Washington. Amazon was one of the first companies to offer and sell goods on the Internet on a large scale. Jeff Bezos being just a young man who was just out of Princeton, a university where he graduated in 1986, he began to quickly make a name in the business world until he became vice president of the important signature of Wall Street D. AND. Sahw and co. 

A position he left at age 26 to launch his own company from his garage in the city of Seattle (Washington). The result of this adventure was Cadabra, the Amazon embryo. He created the Cadabra company on July 5, 1994. Bezos changed Amazon’s name a year later after a lawyer confused cadabra with a corpse. In September 1994, Bezos bought the URL Relay.Com and briefly, the online store had the name of Relay, but his friends told him that the name sounded a bit sinister. Bezos changed his name to Amazon.com in 1995.

Introduction

Bezos selected the name of Amazon looking at the dictionary, opted for the name, Amazon, because the Amazon was an ‘exotic and different’ place as he planned his store; The Amazonas river was the world’s ‘biggest’ river, and he planned to convert his store into the world’s largest. Since June 19, 2010, the Amazon logo has presented an arrow curved in the form of a smile that leads from A a Z, which represents that the company has all the products of A Z. After reading a report on the future of the Internet that projected an annual growth of the 2 web trade of 2.300%.

Bezos created a list of 20 products that could be marketed online. Reduced the list to the five most promising products that included: compact discs, computers and programs for them, videos, and books. Finally, he decided that his new business would sell online books, due to the great world demand for literature. The low prices for books, together with the large number of titles available were the reasons for their success. Amazon was created in 1994, in the state of Washington. In July 1995, the company sold its first book. 

In October 1995, the company was announced to the public. In 1996, it was reincorporated in Delaware. Amazon launched its initial public offer of shares on May 15, 1997, negotiating under the amzn stock market symbol of Nasdaq, at a price of $ 18 per share. Since Bezos sold in 1995 since his garage his first book -Fluid Concepts & Creative Analogies -, Amazon’s offer has not stopped growing. The company now has 32 different stores and 285 million customers, as well as 132 million physical references and another 35 million digital at Amazon.it is.

Where an average of 68 are added every day.000 new products. Amazon’s initial business plan was unusual. I did not expect to get a benefit of four to five years. This ‘slow’ growth caused shareholders to complain that the company does not reach profitability quick enough to justify the investment or even to survive in the long term. When Puntocom’s bubble emerged at the beginning of the 21st century, destroying many electronic companies in the process, Amazon survived and grew in the bubble until becoming a huge player in online sales. 

Finally, he obtained his first benefit in the fourth quarter of 2001: 5 million dollars (that is, 1 ¢ per share), with income greater than one billion dollars. This profit margin, although extremely modest, showed skeptics that Bezos’ unconventional business model could succeed.6 In 1999, Time magazine appointed Bezos as a person of the year, recognizing the company’s success in popularizing online purchases. In 2017, he is considered the fifteenth richest man in the world, with a fortune valued in 34.500 million dollars. 

Much of this is because Bezos, undertook in the field of journalism, seeing beyond his commercial horizons; Beyond the web. Bezos entered the world of media by acquiring the traditional The Washington Post for the sum of 250 thousand dollars. In September 2018, Amazon becomes the second company (after Apple) to be valued by Wall Street at one billion US dollars. The company uses around 650.000 people in the world and is the second company with the greatest stock market capitalization in the United States.

Only behind Microsoft, which is curiously neighboring, having both the headquarters in the state of Washington (Northwest of the USA. UU.). Amazon sells a year: 335.000 million dollars (around 310.000 million euros) in total volume of gross goods during 2019. This GMV increased 21% compared to last year’s results, while their own sales increased by 15% and the volume of third -party sales in the marketplace increased by 26%. Sales of third -party vendors on their marketplace do not stop growing.

During 2019 these sales increased by 40.000 million dollars (more than 37.000 million euros) compared to the 2018 results, until reaching 200.000 million dollars (just over 185.000 million euros). On the other hand, Amazon’s direct sales in its ecommerce amounted to 135 to 135.000 million dollars (almost 125.000 million euros), which represents an increase of only 18.000 million dollars (just over 16.000 million euros) compared to 117.000 million dollars that Amazon’s direct sales achieved in 2018.

As you can see in the following Marketplace Pulse graph, third -party sales in their marketplace have grown constantly since 1999. The electronic commerce giant has benefited from the increase in online business derived from confinement measures to curb the expansion of the coronavirus and has raised income in the first quarter by 26%, up to 75.450 million dollars (69.480 million euros). However, the net benefit has gone from 3.600 to 2.500 million dollars, that is, 29% less. 

Operational costs on the initial line of the year rose about 30%, up to about 71.500 million dollars. Amazon invests millions of dollars in research and development every year, and seeking innovation is one of the basic values ​​that their employees defend. Bezos has always stressed that it is not a retail company, but a technology company, since in all aspects of Amazon operations, there are innovations backed by technology. An innovative company is able to adapt to change and is very attentive to the new opportunities that arise.

conclusion

As your market develops with the aim of improving customer experience using their products and services. For example, Amazon has done everything possible to completely customize the website for visitors. People receive suggestions from the items they want to buy based on the products they bought previously, depending on what people with similar tastes bought, depending on the searches they did on the site, among other things. 

And behind everything, what exist are complex software algorithms. And as for logistics systems and technologies, Amazon simply reinvented them internally when it seemed that traditional systems were not the most efficient. Bezos has created innovative models in several sectors and has mercilessly attacked the old ones, since he has several times that he does not respect those of the old models of the analog world because they slow down innovation and that is why he intends to eliminate them. 

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