The Amazon Inc Company Case Study

inc company. It will focus on giving a detailed information on the company's past strategy and the timeline of events that were essential for Amazon company's development. The paper will seek to explain what products the company started by selling. How the company makes new product decision as well as how it developed functional competencies are the key areas of the study. An overview of the company The company is an electronic retailer and producer and manufacturer of electronic book readers as well as web services, provider. Inc. Company. The company was incorporated in the year 1994 by Jeff Benzos who was a former Wall Street Edge Fund executive. He chose the name due to the reason that it had begun with the first letter of the alphabet and also due to the association with the vast South American river.

After a lot of well-conducted market research that Benzos conducted, he came to a conclusion that books would be the most favorable product to start the business online with. The company then recorded a very fast growth even reaching a very high number of 180,000 customers by 1996. In the year 1997, it reached a total of 1,000,000 customer account on its website. The company profits also recorded a positive growth in that by the year 1996 it was $ 15. 7 and shifted to $148 million in 1997. In the year 1998, it rose to $ 610. The product variety increased by the year 1999 where it started selling electronics, video games, household improvement items as well as software's and games. Underwriting Option. In order to sustain its vast growth, Amazon's boss thought of looking for more than private investors to underwrite the expansion.

The company then became a public company having used the underwriting as a growth strategy. It had an income of $54 million by trading in the NASDAQ market. Customer ratings and product guarantee, as well as purchases made as per customer's history, marked a very dramatic increase in the company growth. It created a community of customers with an aim of making the customers helping each other to find everything from the right book extending to the best blender. In the year 2002, the company launched Amazon Web Services (AWS). Its boss proved that the company was not a retailer but a technology company. The website was designed to offer data on internet traffic patterns, the popularity of websites as well as other statistics for developers and marketers.

This product helped the firm to improve much its e-book market. In 2011 amazon company brought to the market a tablet computer that was named the Kindle Fire which it was used to read the Kindle e-books. The tablet sold very well in the market and by 2012 it was constituting 50% of the tablets that were using the Android mobile operating system owned by Google. Progress in e-book selling vs the Kindle e-books. Since the year 1996 when Amazon was much praised by publishers as one of their great partner in the business. Amazon also allowed people to individually publish personal e-books. By the year 2011, the company developed the Amazon publishing. It has grown even to be a competitor to the publishing companies bearing in mind that it used to be one of their partners.