Analysis Of Amazon. Com Inc.

802 Words 4 Pages
Introduction
Amazon.com Inc. is unquestionably the largest e-commerce retailer in the world today; yet, what made Amazon.com Inc. transcend from a “good” business that sold books online to the “great” business that it is today? To begin we must understand that which determines if a business is “good” or “great”. In his book Good to great: Why some companies make the leap and others don’t author Jim Collins defines greatness in terms of a business as the ability of a company to average cumulative stock returns of 6.9 times the general market in the fifteen years following the company’s transition from below the general market to above (Collins, 2001). Collins goes on to say, “Good-to-great companies think differently about the role of technology.
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was founded in July of 1994 as Cadabra Inc. by Jeff Bezos (Stone, 2013). Bezos chose to start his company in Seattle because of the city’s reputation as a technology hub and because the state of Washington had a relatively small population, which meant that Amazon would have to collect state sales tax from only a minor percentage of customers. Jeff Bezos meticulously calculates every aspect of his business, a theme that has allowed him to stay ahead and properly manage his organization’s success. Looking to the future, Bezos wanted to create what he referred to as an “everything store”. The concept was simple: an internet company that served as the intermediary between customers and manufacturers and sold nearly every type of product, all around the …show more content…
After narrowing his product list down to ten, Bezos settled on books because of the small barrier to entry and because books were the same no matter where you bought them. At the time there were three million books in print and it was impossible for a Barnes & Noble or a Borders superstore to stock every book. Due to the fact that Bezos could not build an “everything store”, he settled on the essence of it through unlimited selection. Deriving out of this concept, Bezos was able to create a store online that could not exist any other way because the diversity of products (Collins, 2001). Using a differentiation strategy of an online bookstore and in theory having an unlimited stock of every book in print, Bezos was able to successfully create his business. Internet book sales were not immediate but over the next two years sales became more consistent and the company began to grow; however, the company was not “great” yet and would seek a different technological niche to transcend into

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