History of Amazon:
The company was created as a result of what Jeff Bezos called his “regret minimization framework”, which described his efforts to fend off any regrets for not participating sooner in the Internet business boom during that time. In 1994, Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle, Washington, where he began to work on a business plan for what would become Amazon.com.
On July 5, 1994, Bezos initially incorporated the company in Washington state with the name Cadabra, Inc. After a few months he changed the name to Amazon.com, Inc, because a lawyer misheard its original name as “cadaver”. In its early days, the company was operated out of the garage of Bezos’s house on Northeast 28th Street in Bellevue, Washington. In September 1994, Bezos purchased the domain name relentless.com and briefly considered naming his online store Relentless, but friends told him the name sounded a bit weird. The domain is still owned by Bezos and still redirects to the retailer.
Introduction:
Amazon is an American international e-commerce company. It was started by Jeffrey P. Bezos in the year 1994. And it was launched in
India in June 2013. Three years back, Amazon had no infrastructure in
India, and now it dominates the Indian markets. At the very start it was
perception of investors that in India It will not go long like China as in
the 2004 when Amazon entered in China it hasn’t seen much
success there with Alibaba, its Chinese competitor, dominating the e-
commerce market. After its bad run in China, Bezos is going all in for
India.
Fact behind formation of Amazon in India was its huge number of headcounts i.e. 1.25 billion four times as big as the U.S.’s and more.
than doubles . Of these 500 million around 35 are
Internet users. As per researches the yearly growth rate of internet users is highest in India around six million users join every month. Researchers expect the online shopping market in India to reach $15 billion by 2016 up from only $35 million in 2014.
Objectives Of Business Model:
- To look into the strategy of Amazon to assess and be prepared for the foreseen challenges of running Am
- To understand Amazons expansion strategy in detail.
Amazon India Business model:
Amazon targets the middle class & upper class people who have hands on experience in technology but don’t have much time to do shopping from the physical outlets. Taking this into consideration Amazon has successfully positioned itself as a Glocal (Go global Act local) e-commerce giant where one can buy anything & get it delivered at any remote locations. Using the catchphrase Aur Dikhao its most recent campaign in India, it has further helped them carve a distinct space in the consumer’s mind.
Company acquired many IT & e-commerce start-ups like pets.com, audible.com, Junglee.com, IMBD.com,
Zappos.com, Woot etc. for providing high value to their customers using existing technology of the acquired
partners at low cost.
Company’s CRM records data on customer’s buying behavior. It enables them to offer individual items, relaconsumers or bundle them as an offer, based upon preferences demonstrated through purchases or items visited. Revenue model defines how a firm aims to generate higher return on investment and profits. Important e-commerce
revenue models include advertising, subscription, transaction fee, sales, and affiliate revenue models (Laudon and
Traver, 2009). Market opportunity gives description of possible revenue a company is likely to generate from its
proposed marketspace.
.
In the U.S., by contrast, Amazon holds and sells its own inventory of toys, books, and more in addition to selling
goods from third-party sellers. The Indian Government, however, plans to allow foreign companies that manufacture their products in the country to sell them directly to consumers over the Internet. But Amazon would have to start making its products in India to take advantage of the change in the law. Amazon’s model in India differs slightly .
As we discussed earlier that major foreign ownership to operate retail locations having their own inventory . Because of which amazon serves with warehousing and shipping goods
Amazon is an American international e-commerce company. It was started by Jeffrey P. Bezos in the year 1994.
And it was launched in India in June 2013. Three years back, Amazon had no infrastructure in India, and now it dominates the Indian markets. So main objective of the case is to study the challenges faced by Amazon India during initial years and what strategy it followed to overcome the challenges. This case will also study the business model of amazon in India
Amazon entered in China it hasn’t seen much success there with Alibaba its Chinese the
commerce market. After its bad run in China, Bezos is going all in for India.
Fact behind formation of Amazon in India was its huge number of headcounts i.e. 1.25 billions.
Researchers expected the online shopping market in India to have reached 15 million by 2016.
Amazon is known for knowledgeable products
Note: References taken from different websites as the data was number based.
-Medha Singh
Track2Training 