Amazon
Amazon
Amazon
GROUP ASSIGNMENT:
Amazon Empire
SUBMITTED TO:
NAME MATRIC NO
DATE OF SUBMISSION:
16 December 2020
TABLE OF CONTENTS
1. Introduction------------------------------------------------------1
4. Innovation of Amazon-----------------------------------------25
6. Conclusion--------------------------------------------------------37
7. References -------------------------------------------------------40
8. Appendices ------------------------------------------------------42
1. Introduction
A person who was born on 12 January 1964, in New Mexico. His first love
senior vice president. Four years later, he quit his job running Amazon.com. This
innovation and mass scale. It is the world's largest e-commerce market by revenue
Amazon.com was founded in July 1994 as CADABRA. When Jeff Bezos began
selling books online, which at that time was a brand concept. He realized that growing
big and fast was the only way to succeed online! The business sells everything today,
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On the 1st of November 1994, Amazon.com was licensed. He knew he wanted
to establish some kind of online store at that time, but he wasn't sure what to offer. He
decided on books after some study. It was relatively simple to source, package, and
distribute them. But this marketing model was not the first company to hit Amazon.
started selling its own products online. Its greater comfort was the differentiation
Amazon.com had to sell. It was based, from the off, on a concept of directly
delivering online orders to the address of the customer anywhere in the world.
Amazon.com. He was a Wall Street hedge fund executive at the time. Amazon was
Insider. But he was told by Bezos' lawyer that the reference to magic was maybe a
little too vague. Often when people heard the name on the phone, instead of not
ideal they all too often heard "Cadaver". So, Bezos and his then-wife, Mac Kenzie
Tuttle, began registering their proposed new company with some domain names.
word Amazon after scrolling through a dictionary for some inspiration. Jeff thought
this was especially appropriate as he planned his online store to become the world's
largest — just like the Amazon is one of the largest rivers on the plane. In the end,
Bezos first named his new company CADABRA, then Amazon, after the Amazon
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Amazon is based in Washington state founder current CEO, chairman of the
board and president is Jeff Bezos. Amazon entered India in 2013. In July 2016,
Amazon launched its services, such as Amazon Prime Video, Amazon Kindle,
Amazon MP3, etc. It is considered one of the top four technology companies, along
All in all, Amazon's sales ranking indicates the popularity of products sold in
any Amazon region today. It is a relative indicator that is updated hourly. In fact, it's a
best-seller for the millions of products, Amazon has in stock. The products shown in
these lists enjoy more exposure on Amazon, which could lead to increased sales. In
this way, Amazon serves its customers through the popular website
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2. The History and the rise of Amazon
Amazon was founded in 1994 by Jeff Bezos. Originally, the corporate started
as a web bookstore. During the online boom, Jeff Bezos realised that an online
bookstore could sell virtually limitless number of books in its virtual warehouse, as
against physical bookstores that were limited by storage and shelves space. Bezos
"Amazon" because it had been a part that was "exotic and different", when he had
envisioned for his Internet enterprise. The Amazon River that he noted was the largest
river within the world, and he planned to form his store the most important bookstore
within the world. Additionally, a reputation that began with "A" was preferred
brand and told a reporter, "There's nothing about our model that can't be copied over
time. But you recognize, McDonald's got copied. And it's still built an enormous
which is multi billion dollar company. lots of it comes right all the way down to the
name. Brand names are more important online than they're within the physical world."
In 1994, Amazon.com sold its first book, and within the primary two months
of business, the web site had sold to all or any 50 US states and over 45 countries
worldwide, with sales totalling over $20,000 – a powerful feat for a startup company
hosted in Bezos’ garage. From 1994 onwards, Amazon continued to grow and
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although the corporate didn't make its first annual profit until 2001, it enjoyed a large
customer base and an ever increase volume of traffic through Amazon.com. From
beginnings as an internet bookstore, Amazon now sells practically anything that all
the users will consider, and it's become a world marketplace more corresponding to
eBay. The users be able to find electronics, housing accessories, books, furniture,
Amazon has also branched out and invested in other technologies like Amazon
Echo smart speaker, and Amazon Kindle e-Book reader that both are hugely
passing through its websites on everyday. This translates to product sales per month
of 606 million through Amazon.com, 399 million through Amazon.de, and 390
new products to the marketplace day by day, which translates to shipping costs of
over 7 billion USD. To keep the increase of Amazon and its websites running, the
helped by 54,000 automated robots and machines installed at the varied immense
Amazon warehouses, a number of which process over 1 million items per day during
So, there are Amazon E-Commerce websites that are largely automated, but
warehouses chargeable for the storage and shipping of supplier products. Then,
there’s a fleet of drones, trucks, and even cargo planes that form together to create the
Amazon delivery network. As we can see, behind the scenes at Amazon, there's huge
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amount of labor that's undertaken to make sure a smooth and streamlined service is
Next there are several things and situation made Amazon popular. To analyse
the evolution of Amazon and why it is so popular, we are going to try several
different key products and services that the company provides like Amazon.com E-
book reader.
foremost popular websites within the globe with an infinite customer base.
Amazon.com is popular for several reasons. Firstly, it's intuitive and encompasses a
straightforward layout. Users able to easily seek for products using the search
listings are comprehensive and have customer reviews, star ratings, and suggested
products that enhance a customers shopping experience. Finally, the net site features
The Amazon Kindle is one in all the foremost popular ebook readers and was
one among the primary of its kind. This fantastic device allows users to download and
install digital books and skim them from anywhere. it's an outsized storage capacity,
therefore, the users hold many books simultaneously, rather than carrying one book in
your luggage on holiday. For example, Kindle allows to the freedom to need as many
books as they please. The battery life is great, and so the standard of the display is
outstanding too. Amazon continues to work on this product to refine the technology,
and it remains one in all the foremost popular ebook readers on the market, showing
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the incredible popularity of the corporate and explaining the increase of Amazon.
Finally, we've got Amazon Echo device. This new type of technology utilizes AI
programming within the type of Amazon Alexa. Users can talk or speak to “Alexa”
and use her as a home assistant, this made them not to feel lonely. Alexa will provide
logical answers or search the web to hunt out the info you'd like , like current news or
today’s weather. this kind of device has become hugely popular, and like Kindle,
Amazon Echo is one in all the primary of its kind and shows that Amazon continues
Yea
Event type Details
r
Company
1998 Amazon announces that it’ll move beyond books.
Direction
7
Yea
Event type Details
r
technology.
2005 Product two-day shipping within the contiguous U.S on all eligible
a low salary.
3rd-party sellers.
8
Yea
Event type Details
r
Acquisitions,
2009 Amazon acquires Zappos for $850 million.
Competition
2010 Product outnumbered sales of hardcover books for the primary time
ever.
2011 Product admittance to 5,000 films and Television shows for Amazon
Prime individuals.
2011 Product and therefore service was made available in over 200
countries.
lockers.
9
Yea
Event type Details
r
2012 Acquisitions company that creates robots that can move items around
warehouses.
2014 Legal embrace the organization estimating model and set costs on
10
Yea
Event type Details
r
website.
2019 Company after massive backlash from local politicians and community
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3. Problem faced and solution
Intense competition
Their businesses are rapidly evolving and intensely competitive, and they have
industries, including physical, e-commerce, and retail, e- commerce services, web and
electronic devices, digital content, advertising. Some of their current and potential
competitors have even greater resources, longer histories, more customers, and in
their newer geographic regions. The competitors may having better terms from
vendors, adopt more aggressive pricing, and devote more resources to technology,
business models and the entry of new and well-funded competitors, and as their
Moreover, new and enhanced technologies like search, web, electronic device,
competition. The Internet competitive free entry and comparison shopping, which
enhances the ability of smaller, new, or less popular businesses to compete against
them. As a result of competition, their product and service offerings may not be
successful because they may fail to gain or may lose business, and they may be forced
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to increase their spending or lower their prices, any of which could materially reduce
Alibaba. On a global scale, Alibaba does not come close to Amazon in terms of
market capitalization and market share. The majority of Alibaba’s revenue are from
their chinese operations alone. In chinese market Alibaba almost beats Amazon in
every field. Alibaba made up for 58.2% of the entirety of e-commerce sales within
China in mid-2018. Amazon, with only 0.7% of the e-commerce sales in the chinese
market has a long way to go within China. The reason why Amazon failed to impress
chinese market is because of Alibaba were able to provide to local tastes which
Amazon failed to. Amazon also sell their products offline even though they are
compete with Amazon. So basically Walmart is one of the biggest offline competitor
supermarkets and grocery stores. Walmart also working on the retail and electronics
industry which is one of Amazon biggest revenue come from. Walmart entered e-
commerce space in 1996. Customers able to purchase goods and products from their
homes thru Walmart’s online store. They also give the same discounts no matter its in
There are the few lethal weapons Jeff Bezos uses to beat the competition. Firstly, they
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focus on their customer. In Jeff Bezos point of views, he is listening to customers
instead of his competitors has enabled Amazon get ahead of the market. So it allowed
him to think itself instead of blindly following what others are doing. Amazon
offering their consumers greater ease of use over other retail e-commerce websites.
They came out with their own website which able to help consumer to look for their
Then Jeff Bezos is a person who willingly takes risks which made him highly
competitive in pricing. Bezos believes that avoiding failure is the wrong strategy.
Amazon has always placed growth and “customer value” over short term profits. So
Amazon started a customer friendly 30 day return policy. When Amazon launched
this service in 1995, online shopping was new to many people. Since everyone is
feeling insecure about online shopping, Jeff Bezos had to look for ways to inspire
consumer confidence and overcome their fear of the quality of products on sale. So
they introduced the concept of 30 day return policy. Amazon made it effortless and
quick to return a product which not many other competitors willing to do because it
named Merchant.com to help the third party merchants build online shopping sites on
top of Amazon’s E-commerce engine. It turned out become a lot more tough than they
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challenge to separate the various services to make a centralized development platform
At this points, Amazon took their first step on building AWS (Amazon Web
Services) to untangling the mess. The company was growing quickly and hiring new
software engineers but they were not building applications any faster. Jassy, who was
Amazon CEO Jeff Bezos’ chief of staff at the time, tried to dug into the problem, he
found a running complaint. The executive team was expected a project to take only
three months but it was taking three months just to build the database, compute or
storage component. Meanwhile in the team, everyone was building their own
resources for their individual project, with no thought to reuse or scale. So Amazon
As the internal team worked, Jassy realized that they had also become quite good
at running infrastructure services like compute, storage and database. As low as a low
margin business like Amazon, they has to be lean and efficient as possible. It was at
this point they started to formulate the idea of AWS (Amazon Web Services). AWS
was the first to market with a modern cloud infrastructure service when they launched
Amazon Elastic Compute Cloud in August, 2006. Basically AWS is a secure cloud
service platform, offering compute power, data storage, content delivery and other
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In this modern era, they are so much information was sent around in the internet
heard stories about people having their personal information got stolen outta of
nowhere. If the third parties has our private information then they will be able to
access everything. For the example they able to use our credit card whenever they
want as the results we will be having huge debt. On the other hand, leaked
information such as phone number or home address could be dangerous too because
they could break into our house anything or sending threatening messages to our
phone. Not only that, if our phone has been hacked, they might spread our sensitive
information to the world or use it as a blackmail. This is why they were so many
people feels insecure to purchase online back in the day when online payment was
Back in the day when Amazon just introduced about online payment, there were
many people who are afraid of the service because they afraid of their personal
information will be leaked out to another third parties. To solves this problem, Jeff
Bezor made some policy about they will be working to protect the security of our
They also will be following the payment card industry data security standard while
handling our credit card data. Then they maintain physical, electronic, and procedural
Delivery service
Nowadays, human does not like to wait. They tend to react angrily if they not
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able to get the stuff as soon as possible. Mostly everyone will be receiving their
parcels in a couple of days, tomorrow or even in few hours with “Prime Now”.
Normally people who are in urgent need will be driving to the physical store to get
their stuff immediately. Amazon has always thinking to deliver faster than what they
could do now. Amazon found out that 75% of their items are small and only weight
less than a couple of pounds. So they have the thought of who would they let go some
of the potential customer to spend about half an hours to drive to the store, find
parking and grab the item and get back home safely.
In the end they came out with a idea where they use drone to deliver these
items.They decided to focus on using flying drones to be able to deliver those small
packages in less than half an hour to the customers. This is where they came out with
“Prime Air” project. Prime air is a future delivery system by Amazon that designed to
safely get packages to their customers in or less than 30 minutes using drones.
Amazon believes that Prime Air has a very great potential to enhance their
shipping/delivery services because it able to providing rapid parcel delivery and also
will increase the overall safety and efficiency of the transportation system in Amazon.
Amazon also received approval from the Federal Aviation Administration to operate
their fleet of Prime Air delivery drones. By having this approval, Amazon will be
addition, Amazon teamed up with UPS and Alphabet owned wing who also
previously won FAA approval for their drone delivery operations. This certificate is
very important to Amazon because its a step forward for Prime Air and safety
procedures for an autonomous drone delivery service that could possibly deliver
packages to everyone around the world. In 2013, Amazon began to test delivery
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2019 Amazon submitted their petition for FAA approval. In the petition Amazon
stated that they will only deliver in areas with low population and weight of the
packages will be lesser than 5 pounds or less because for safety purpose. Amazon
debuted their drone in the conference that their drone capable to carrying packages
Product liability refers to the seller or manufacturer for selling defective or fake
product to the consumer. Some of the products Amazon sell or manufacture will
expose them to product liability or food safety claims relating to personal injury or
illness, death, or environment or property damage, and can require products recalls or
other actions. Third parties who sell fake and harmful products using Amazon as the
services and stores are the main culprit behind this fraud. Besides, some third-party
sellers use Amazon as a platform to scam the consumers’ money. There are few
examples of scams like “failed delivery scam”. This type of scam exist since e-
commerce is introduced but it still happened very frequently. The buyer will purchase
products from the seller and the product did not arrive and the buyer wanted to refund
or ask for a replacement. Then, the seller will just ignore the message or request of the
buyer. In some instances, some seller may refund but they will drag the whole
procedure as long as few weeks or months. Typically, a buyer who are not familiar
with online shopping will easily fall for this kind of tricks. Falling for this scam will
not only destroy buyers profit and will also affect their feedback and metrics on
Amazon.
To prevent and reduce these frauds and scams, Amazon has executed Anti-
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presses that seller’s and supplier’s responsibility to source, sell, and fulfil only
products or content and products that infringe another party’s intellectual property
immediately suspend or terminate their Amazon selling account and dispose of any
Amazon do not pay sellers until they are confident that their customers have received
the authentic products they ordered. Amazon may also withhold payments if they
determine that an Amazon account has been used to sell inauthentic goods, commit
fraud, or engage in other illegal activity. Next, Amazon will work with manufacturers,
rights holders, content owners, vendors, and sellers to improve the ways they detect
and prevent inauthentic products from reaching to the customers. As a result, Amazon
will remove suspect listings based on their own review of products. Amazon also
work with rights holders and law enforcement worldwide to take and support legal
action against sellers and suppliers that knowingly violate this policy and harm the
customers.
The Amazon A-Z Guarantee policy will protect the consumers when they
purchase items sold and fulfilled by the third-party seller. This policy will cover both
condition of the items purchased and the delivery duration. If the consumers are not
satisfied with the products or services, they are eligible to request a refund under A-Z
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1. You have not received your package and three days have passed since the
2. You received an order that is different than expected and have requested a
3. You returned your item with a trackable shipping method and the seller
around the world. It is also crushed the global economy, brought industries to a
stagnant stage, spurred mass layoffs and even many major companies are failing amid
the shutdown. For examples, big clothing retailer company, “ZARA” closed up to
1200 fashion stores worldwide and swift their business online. But there are also
winners throughout pandemic and Amazon is one them. Amazon, the e-commerce
giant, with vast and endless products selection and strives to deliver convenience and
low prices, became the default retailer and an essential service for many consumers at
Many shops closed down due the pandemic and shopper turned their target to
Amazon for products to protect them from Covid-19, like hand sanitizer, face masks
February and March, toilet paper sales jumped 186% on Amazon from a year ago,
while cough and cold medicine sales surged 862% year over year. People were in the
state of panic buy and hustle during the period. The flood of online orders propelled
Amazon to record sales during the second quarter. The surge of unexpected orders
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initially caught Amazon off guard. Amazon struggled to meet its vaunted two-day
delivery window, which it promises to its Amazon Prime members. It quickly ran out
price gouging, and rushed to adjust operations inside its warehouses to keep
companies like Amazon are generally prepared for potential supply chain disruptions,
but not like this one. Even Amazon, with its sprawling end-to-end logistics network
spanning warehouses, planes, trucks and vans, was not able to keep operations
steady. CEO of Amazon, Jeff Bezos stated that this pandemic had upended Amazon’s
operations and it was the hardest time the company had faced as they need to satisfy
the market demands and also prevent employees from the virus.
First, Amazon had quickly prioritised the stocking of essential household staples,
medical supplies and other highly demand products into the fulfilment centres. Items
like toilet rolls, hand sanitizers, face masks and temperature scanner are those critical
products during the pandemic Covid-19. Furthermore, in order to handle the large
amounts of orders from the customers, Amazon realised that they need to increase
March 2020, Amazon opened 100,000 new positions across their fulfilment centres
and delivery networks. After successful employed those 100,000 new roles, Amazon
creating another 75,000 jobs to fulfil to their market demand. These employments will
not only help Amazon to respond to their market needs faster but also provide jobs for
Crucially, while providing products and services to the consumers, Amazon also
focused on the safety of their employees and contractors around the world. Amazon
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consulted with medical expert and health authorities to help all the frontline
employees stay healthy. Besides, Amazon will regularly sanitize the door handles,
stairways handrails, lockers, elevators buttons, and touch screens to prevent the spread
break times, moved information sharing to bulletin boards, and spread out the chairs
in breakrooms. As for new employees, Amazon ensured that all of them must attend
the six hours safety training to raise their awareness. Next, regular testing of all
Amazonians including those with no symptoms. This safety measure is vital and
practiced in all industry as if 1 employee tested positive, the whole company need to
stop from operating. This can lead to a huge lost in profit to Amazon.
increase in global greenhouse gas emissions even as the company commits to shrink its
carbon footprint. In the same year, Amazon self-published its carbon footprint, stated that the
business operations emitted the equivalent of 51.17 million metric tons of carbon dioxide, a
15% increase from 44.4 million metric tons in 2018. Amazon also stated that the carbon
In 2019, Amazon co-founded The Climate Pledge with Christina Figueres, the
UN’s former climate change chief and founder of Global Optimism and become the
first signatory to the pledge. This dedicated investment program with an initial $2
billion in funding will invest in visionary companies whose products and solutions
will facilitate the transition to a low carbon economy. To meaningfully reduce the
amount of net greenhouse gas emissions, low carbon solutions need to be developed
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in all sectors of the global economy. The Climate Pledge Fund will invest in
and food and agriculture. Companies of all sizes and stages will be considered, from
Climate Pledge Fund is global and will consider investments in companies developing
products or services that reduce carbon emissions and help preserve the natural world
In addition, 10 years ago Amazon also signed the Paris Agreement which targeted
achieves this goal because their business is growing bigger year to year. In order to
achieve the goals, Amazon has purchased 100,000 electric delivery vans from Rivian,
a Michigan based producer of electric vehicles. Amazon aims to have 10,000 electric
vans on the delivery services as early as 2022. Besides, Amazon also committed to
reaching 80% renewable energy by 2024 and 100% renewable energy by 2030.
Previously, Amazon has 86 solar and wind projects that have the capacity to generate
over 2,300 MW and deliver more than 6.3 million MWh of energy annually. This
sellers or suppliers to package their parcels in an easy opened way and 100%
recyclable packaging that is ready to ship to customers without the need for an
additional box. From the program, Amazon has saved more than 810,000 tons of
packaging materials and declined the usage of shipping boxes up to 1.4 billion pieces.
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4. Innovation of Amazon
company started as an online bookshop but soon expanded to the online mall for
selling electronics, software, video games, toys, apparel, furniture, food and jewellery.
The Amazon was then surpassed Walmart as the most valuable retailer in US by
market capitalization in 2015. In 2017, Amazon was acquired the Whole Foods
Market for $13.4 billions which is substantially increased its footprint as a physical
retailer. Then, Jeff Bezos was announced that Amazon Prime, the two-day delivery
innovation and its mass scale. Amazon is the world largest online marketplace, AI
by revenue and market capitalization. Beside that, Amazon is a world largest Internet
company by revenue in the world and the second largest private employer in the US
Amazon was walk into many fields. People can download and streaming of the
video, music and audiobooks through the Prime video, Amazon Music, Twitch and
Audible subsidiaries. Then, Amazon also publishing arm, Amazon Publishing, a film
and television studio, Amazon studios, and a cloud computing subsidiary, Amazon
Tablets, Fire TV, and Echo devices. The Amazon also acquisitions over the years
include Ring, Twitch, Whole Foods Market and IMDb. The company has been
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hyper-competitive and demanding work culture, tax avoidance, and for being anti-
competitive.
And now, the Amazon are become a multinational technology company that
computing, digital streaming and artificial intelligence. The Amazon is one of the Big
Five companies in US information technology industry along with the Google, Apple,
Microsoft and Facebook. Beside that, the company has been referred as “one of the
most influential economic and cultural forces in the world”, which is the most
valuable brands.
Amazon can grow from online book shop to the multinational technology
company now, the innovation idea are necessary. The decision that Jeff Bezos decide
to selling book through online is the first innovation idea that makes Amazon went
live. It is because without this decision there is no more Amazon in the world. Jeff
Bezos was chosen the books as the first product of the shop is because the books have
variety categories than the other products. Then, with the Jeff Bezos mind that won’t
stop until he achieved his goal or proven that he is wrong, Amazon, the largest online
Then, Jeff Bezos is stepped his step to makes the Amazon bigger because he is
not going to sell the books only, but everything in this universe. The data collection is
a most important things for Amazon to keep improved. Through the data that
collected by tracking and recording the customers behaviors on the website, Jeff
Bezos can predict or try to predict the books that a customer would like but not yet to
discovered. The tracking and recording system through the website is an innovation
idea even that it is quite impolite to the customers. Through the data collection of the
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customers, Amazon can improve quickly because they knew what the customers need
and wants and Jeff Bezos was treated the site as a laboratory where he studied the
behaviors of the customers with his chief, Andreas Weigend. Through the data
collection, Amazon can know and predict most of the customers falling for.
After that, another innovation idea is then carried out by Jeff Bezos, he run the
strategy of losing money to put the other companies who can’t afford to lose money to
out of the business. Jeff Bezos once wrote a phrase on the letter that to the
shareholders, “Is all about the long term”. Jeff Bezos are not looking at the profit of
the short term but long term. He said: “We’re going to forego the profit in order to
take the market share” and one of his accomplishment was Jeff Bezos able to make
wall street to accept the fact that Amazon wasn’t going to be very profitable in the
first 20-some years. Well, it is acceptable because they are building infrastructure that
will create a huge opportunity for them to gain scale, customers and business.
After a few years, Amazon has added thousands of warehouse worker and three
million square of feet of space. And one of the advantages that thanks for the
innovation idea that start the business online is Amazon no need to charge sales tax. It
is a big advantage that compare to the physical shop that need to charge the sale tax
and The Amazon was success to expanded their products to the others that beyond the
books.
Even that there already have many products that sell on the Amazon, but Jeff
Bezos still have a long way to achieve his goal that sell everything that in this
universe. Then, Jeff Bezos was found an innovation way to achieve his goal, Amazon
was become a Walmart of the internet soon. Because of the successful of the Amazon,
many businesses are eager to sell their product through the online. With this great
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opportunity, Amazon was turning from the online bookstore to the online mall.
Amazon was upgraded to a platform that provide the internet selling service to the
other businesses and it was a easiest way to let the shops set up their shop to sell
event more power in 2005, Amazon Prime. Amazon Prime was known as a delivery
service that called “2-day delivery service”. And to get the service, the customers had
to sign up as a member of the Amazon and paid $79 for a year. It was a innovative
way to attract the customers but it is a tremendous expense for Amazon. On the
opposite, Jeff Bezos think it is worth that in the long term. Amazon Prime is a
important program to the Amazon because it is the most important drivers that caused
the growth of the Amazon. Because “2-day delivery service” mean that after the
customers buy the product from the Amazon, the product will soon delivered to you
door no matter that the customer at where in the country. This “2-day delivery
service” was success to keep attracting the customer to buy the product from the
Amazon. To ensure that the big promise is true, Jeff Bezos was went on a building
spree. Amazon started to spring up the warehouse across the country, filled with a
million of products.
After the Amazon was opened in the area in 2010, the innovative ideas were born
due to the big sprawling warehouse that stocked with goods in very random fashion.
Warehouse robot, Jeff Bezos was experimented the new technologies and techniques
to boost the productivity and then bought the whole company. Beside that, Amazon
had acquired the Kiva systems and they made the shipping robots themselves. It was a
big help to transform the working environment that in the Amazon’s warehouse.
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Amazon Web Services (AWS), makes up a cloud computing platform by
collecting the remote computing services and offering them over the internet. Amazon
was built the Amazon Web Services (AWS) to handle the retail operation and the
services launched in 2006. Amazon was the first company that introduce the service
that pay-as-you-go cloud computing model that provide users with computing,
storage, or throughput as needed. Thanks to the cloud computing, the Amazon Web
Moreover, Amazon was soon introduced the 1-click ordering. 1-click ordering is
a step that can skip all of the steps of the online buying process and directly order the
products. But the address and payment method need to be entered first when the
customers place the first time order. After that, the payment will automatically using
the payment method and the products will ship to the address that the customer
entered at the first time when the customer using the 1-click ordering again. The order
can be edit or cancel in the first 30 minutes if the customers was wrongly ordering the
products. In addition, Amazon was introduced the Dash Button to allowed the
customers order the products that they pre-selected with a press of a small button on
the devices. Dash Button is a wireless device that uses to order the product that the
customers pre-selected. The device can set up by using the Amazon App and selected
the product that the customer want to order. There has two light on the device which
is green light and red light. Green light is the products are order successfully and the
red light is occur any error due to the ordering process to cause the product ordering
sis not success. Due to some problems, Amazon was stopped selling Dash Button in
2019.
In 2014, Amazon had released a product named Amazon Echo, which is a smart
speaker to allow the customer using voice to command Alexia. Alexia was built into
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every Echo device such as Echo Dot, Echo Spot and Echo Show. All Echo models
can have a simple communications and behaviour such as data researching, smart
Plus, the Amazon was introduced the Amazon Ring Camera as a smart security
system that can let the user to watch their home from everywhere. The users can
communicate with the people through the Fire TV and Echo with the Amazon Ring
Amazon lockers also is a innovative idea that applied by the Amazon. This is a
locker that allowed the customers to put their packages in case of the customer are not
at the home when the products is delivered and the product is hard to deliver. The
customer can pick up their package by using a code that email to them when the
package is delivered.
The other innovative idea that applied by the Amazon is the Amazon
Recognition. The images and video can added to their application through the
Amazon Recognition and the Amazon Recognition API will identify the objects, text,
scenes, people, and activities. The Amazon Recognition is provide a high accuracy of
the face comparison, face searching capabilities, and the facial analysis to detect and
And last, the Amazon launched the Amazon Go recently. Amazon Go Grocery is
different than the other because it no need to register or checkout. The shoppers only
have to swipe a code on their phone and they will able to grab the products they like.
The Amazon called this as the experience of “Just Walk Out”. To shop in the grocery,
the customers need to using the Amazon Go App to enter the store. The Amazon Go
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grocery’s technology is properly same as the technology that operates in the self-
driving cars. The technology can detect either the products are taken or put back to the
shelves. The customers’ virtual shopping cart will always keep tracking by the
technology because the products they choose will automatically added into their cart
and charged through the Amazon account when they leave the Amazon Go grocery.
In addition, the grocery doesn’t have any cashier and the buying and selling process
are quickly.
Without a doubt the Amazon is one of the most successful and impactful
company in the world. It is because the management and the company’s goal that are
simple and clear. The Amazon will try to have a deeply understanding to their
customers to improve their company and it is a most important fact that the Amazon
can grow quickly. The principle of the Amazon that “customers come first” also
makes the innovative idea have the clearly goal that need to achieve.
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5. Recommendation for future prospect
In this era of internet convenience, online shopping has become more and more
common. The e-commerce market is also ready for the future. Although Amazon’s
history and growth has been dominated by electronics. However, continued success
cannot be guaranteed, and there are many challenges. Here are some suggestions and
First and foremost, Amazon's platform will expand and cover more and more
countries. Amazon should continue and accelerate online sales in international and
emerging markets especially Asia and Eastern Europe. Amazon should push these e-
to diversify income in different regions. India will be one of the countries where
Amazon wants to expand its business. For instance, several Indian brands sold
globally like Dabur, Himalaya, Titan, Patanjali, Amul, and so on. Amazon thinks this
competition and higher profit margins can also achieve better development of the
company. Specialist said that compared to its competitors Flipkart and Alibaba,
Amazon has a first mover advantage. IDG Ventures India founder and general
manager TCM Sundaram also said that Alibaba is selling Chinese goods to Indian
buyers, and nothing can stop Alibaba from developing large and small businesses in
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Apart for that, Amazon also can provide free or subsidized Internet access to
systematic networking of economic and social society will provide enterprises and
way, students can broaden their horizons, business people can discover new market
agencies can provide public services more efficiently, and the public can participate in
the online world to provide services to developing countries. It's also one way to
extend the e-commerce experience to people who currently don't have this experience.
The value of the network increases with the number of users. By participating in the
global information network, developing countries can develop trade and traffic based
on the network, not only creating huge economic benefits for themselves but also for
prepare for the networking world. Although this approach is not realistic, and the cost
of providing network services may be higher, but if these areas can also enjoy the
convenience of this platform, it may also change the people's living standards. Other
than that, Amazon can also sign contracts with them to let them be the shopkeepers,
which can increase profits more widely, and these profits are enough to make up for
Otherwise, Amazon has also tested grocery shopping and delivery service
options, learned and adjusted strategies, and believes that selling groceries to
customers is the key to selling them to other products. Now that many people feel
anxious to wait, coupled with the fact that some people desperately need these items
in a short period of time, these physical stores will be of great help. More importantly
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for Amazon, this strategy is to further integrate its brand into our daily work. After
without a cashier or checkout line. This store sells groceries and reasonable food and
the store and scan the Amazon Go app on their phones to pick up or return items from
the shelves before heading straight out the door. This store can use advanced
technology to scan products and charge consumers’ accounts when they leave the
records the consumption of consumers in the store through computer vision, deep
learning, touch mixing and other technologies, so that consumers can purchase goods
without queuing. Amazon Go stores are like test kitchens for stores of the future. If
Amazon in the future. This is also a challenging task, one reason is that bricks-and-
mortar stores are expensive to open, while other bricks-and-mortar competitors are so
Nevertheless, Amazon could also open physical sites that customers can access
centres would make them more cost-effective than building unique brick and mortar
structures. There are stations that allow people with limited access to order from
Amazon.com and pick up goods at these sites. In comparison, Amazon could also
using drones and autonomous delivery vehicles. Amazon had applied to the FAA to
use drones to deliver packages in less populated areas. They also showed that their
drones can carry packages under 5 pounds in half an hour and fly up to 15 mile. The
close automatic transportation can improve the service efficiency and enable
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customers to get their parcels or items more quickly and effectively, because most of
Amazon's goods are small and closely related to daily life items, so that customers
can't forget their needs for Amazon. Amazon has also made inroads into the food
market, which has led to the use of drones for delivery services such as food delivery,
avoiding problems such as traffic jams. If this regulation is accepted all over the
world, consumers can get the packages faster and save more time.
In short, retailers can learn from Amazon's business strategies, such as learning
about your customers. We need to understand what our customers want, and we need
to understand why they are increasingly shopping elsewhere. We can use this
platform requires no or low freight, which is why customers like to buy things on that
platform. In addition, activities and discounts are also the customers' favourites. They
all like to take advantage and choose the cheapest platform to buy goods of the same
brand and quality. Therefore, free shipping, extra activities and benefits are also
Secondly, innovation is very important. We need to test new ideas and not be
afraid to fail. For example, Amazon uses technology to provide better services and
attract more customers. He also adopted a lot of bold ideas like no cashiers or
innovations are risky, but if they succeed, they represent a breakthrough in a new
market. If this type of store can be popularized all over the world, it will bring us a lot
of convenience.
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Then, as an employer, we need to build a customer-centric culture from start to
finish. Customers will bring more useful feedback to improve the company’s
shortcomings. Make the most of every touch point to create a more personalized
customer experience and use the customer data to gather behavioral insights. Integrate
transaction, demographic and behavioral data with the right systems and technologies
to develop a workable customer profile. Use data and technology to add value to the
strategy is based on a primary goal: seamlessly linking the digital and physical
shopping experiences to be part of every purchase. Not only does Amazon want to
sell as many things as possible to most people, it also tries to make itself so ingrained
in people's lives that they can't imagine life without it. This is both a challenge and an
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6. Conclusion
At the end of our assignment, this report has discussed the background of
types, and barriers of innovation. Amazon has to compete with its biggest retail
investment cost of building out new retail stores with high-end innovative technology
that needs investment increases the cost structure, and hence decreases profits in the
short run. Even though Amazon has a lot of potential reserves to cross most of these
barriers, in the long run, it has to acquire and make loyal customers to its retail stores
to survive in the traditional market. Retail stores like Walmart offer the product at the
lowest cost with high customer service. Hence, Amazon should disrupt Walmart
competitive world, and Amazon's move to both offline and online rivals is a good
around the world for its efficiency. Amazon has gone from being a small company
pulled out of a garage to being a Fortune 100 company operating around the world.
every day, offering more than 200 million products at the lowest possible price.
many products. They are constantly expanding and trying to create new ways to
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While the size of COVID-19 is epidemic in this world. The coronavirus spread all
over the world like lightning. To date, the virus has infected over a million people
including Malaysia. With the world going into lockdown, one thing we learned from
the COVID-19 crisis is how important the online market is most popular nowadays.
So, Amazon is one of the company adheres to the idea of consumers through strategic
alliances and technological innovations that enable consumers to buy products online
In general, Amazon is not only a consumer-centric company but also one of the
companies that offer strategies to address the fundamental needs of expanding the
market. In addition, the strategy suits Amazon's position in the online retail industry.
The company suffers from the competition in the saturated retail market, where it
the e-commerce industry, Amazon is able to get ahead and improve the online
purchasing process, making it not only convenient but also reliable and secure.
Amazon was founded by Jeff Bezos in 1994, innovated from 1994 to 2019. Bezos
more. Starting with a long history of acquisitions and key strategic initiatives such as
going public, building additional distribution channels, and having a longer product
line, we know that Amazon is today's Internet retail retailing juggernaut. Amazon
overcame the bursting of the dot-com bubble to make its first profits and buy acquired
more companies. Amazon has implemented different features, such as Amazon Prime,
Kindle e-Reader, and Fire Phone. So, until now, Amazon to experience 25 years in
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By the analysis of Amazon, the future possibility is very wide and can make any
impossible and fantastic business opportunities in the future. There are numerous
opportunities for Amazon. Amazon's plans include more possible acquisitions and
even drone delivery services. Amazon's journey from its Seattle basement to a global
today's business world, and it is equally important to understand the history of such
overview of where the company has gone from humble beginnings to the present. So,
Amazon is a company that analyzes the steps to success, and its history will tell us.
developing higher, more innovative ways to serve customers, which will not only
keep the online business in the market leadership position but also make it a favorite
service all the time. It has several loyal customers all over the world. Finally, by
writing this report and watching the video on Amazon, our team members tried to
deepen their understanding of the reasons behind Amazon's business. The Amazon is
a vast ocean of things to get at the point of contact. Sometimes it sounds real, and then
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7. References
https://edition.cnn.com/interactive/2018/10/business/amazon-history-
timeline/index.html
https://interestingengineering.com/a-very-brief-history-of-amazon-the-everything-
store
https://shahmm.medium.com/how-did-amazon-build-its-sustainable-competitive-
advantage-88cfee7fe2c8
https://www.inc.com/dana-severson/these-are-4-lethal-weapons-jeff-bezos-uses-to-
beat-competition.html#:~:text=Amazon's%20culture%20of%20listening%20to,but
%20few%20walk%20the%20walk.
https://www.ecommerce-nation.com/the-rise-of-amazon-from-humble-beginnings-to-
global-domination/
https://www.marklogic.com/blog/amazon-beating-retailers/
https://www.feedough.com/amazon-competitors/
https://mjskok.com/how-amazon-turned-a-problem-into-a-bn-opportunity
https://techcrunch.com/2016/07/02/andy-jassys-brief-history-of-the-genesis-of-
aws/#:~:text=It%20began%20way%20back%20in,of%20Amazon's%20e
%2Dcommerce%20engine.
https://blog.usejournal.com/what-is-aws-and-what-can-you-do-with-it-395b585b03c
https://blog.usejournal.com/what-is-aws-and-what-can-you-do-with-it-395b585b03c
40
https://www.amazon.com/gp/help/customer/display.html?
nodeId=GX7NJQ4ZB8MHFRNJ
https://datafloq.com/read/what-happens-if-your-data-is-breached/5627
https://blog.goodaudience.com/5-big-business-problems-amazon-is-trying-to-solve-
with-machine-learning-86247af08897
https://www.amazon.com/Amazon-Prime-Air/b?ie=UTF8&node=8037720011
https://www.cnbc.com/2020/08/31/amazon-prime-now-drone-delivery-fleet-gets-faa-
approval.html
https://www.pbs.org/wgbh/frontline/film/amazon-empire/
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8. Appendices
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Figure 3: Jeff Bezos, President, CEO and Chairman
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Figure 5: A conversation about dividing task among group members
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