Interesting Facts about Amazon Company

Interesting Facts about Amazon Company


source wikipedia

Amazon Started In 1994, Bezos quit his job as vice president of D.E Shaw & Co, a Wall Street firm and relocated to Seattle Washington where he devised a business plan for a new company. This move was fuelled in part by his regret for not taking part in the internet business boom at the time. On July 1994, Bezos named his new company Cadabra Inc. but it was quickly discarded when Bezos’ lawyer disclosed that he misheard the name as “Cadaver” over the phone. By September 1994, Bezos toyed with the name“Relentless” which was also scrapped because friends told him the name sounded sinister. The Relentless domain is still owned by Bezos and redirects to the current website. Eventually, Bezos settled on the name “Amazon”,an authoritative name that referenced the largest river basin in the world. This reference also represented his visionof making the company the biggest in the world. Its launch tag line was “Earth’s Biggest Bookstore.”


He once told a reporter, "There's nothing about our model that can't be copied over time. But you know, McDonald’s got copied. And it's still built a huge, multibillion-dollar company. Brand names are more important online than they are in the physical world." Bezos did his research on the future of the internet that predicted the growth of annual web commerce what he believed would-be the most promising.


These products included compact discs, computer hardware, and software, videos and books. In the end, he decided that because of the enormous worldwide demand for literature, the low unit prices for books and a large number of books available in print, his new business would sell books online. Bezos invested almost $250,000 to start up Amazon in the garage of his rented house in Bellevue, Washington.


The First Book Sold In July 1995, Amazon sold its first book,Douglas Hofstadter's Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought and in the next two months sold to all 50 states in the US and more than 45 countries with sales up to $20,000 each week. By October the same year, Amazon announced its intention to go public. When eBay was established in 1995, Amazon tried to compete with its own auction site.


The project failed but Bezos was not unhappy. He bought the skeleton of an Ice Age cave bear for $40,000 and had it displayed in the entrance hall of the company headquarters next to a sign that read, In 1996, Amazon was reincorporated in Delaware and its employee count went up to 11 which prompted its move out of Bezos’ garage into a small warehouse that would become its second official headquarters. Amazon Went Public On May 1997, Amazon issued its first public stock offering at $18 per share. Around this time, Amazon was sued by Barnes&Noble who declared that Amazon’s claim to be “the world’s largest book store”was unfounded as it "...isn't a book store at all. In October 1998, Amazon was sued by Walmart who claimed that Amazon stole Walmart trade secrets by employing former Walmart executives. This suit was also settled out of court but Amazon had to put internal restrictions in place as well as the reassignment of the former Walmart officers.


In the same year, Amazon went on to take over companies such as Drugstore.com, Pets.com, and Overstock.com. In 1999, Amazon attempted to branch out into the publishing business by buying a discontinued imprint, “Weathervane” a trade name under which it would publish books. According to The New Yorker, an American magazine,the books the company published were "selected with no apparent thought". The imprint disappeared soon after and by2014 Amazon agents conveyed that they had never even heard of it. Also in 1999, Amazon’s online shopping gained national spotlight and recognition when Bezos was named the “Person of the Year” by Time magazine for successfully popularizing cybershopping.


Amazon in the New Century In June 2000, Amazon updated its logo to include the curved arrow, shaped like a smile moving from the A to the Z that is popular around the world today. It was also at this time that the online platform started offering free shipping on orders above $100 and the platform opened up to accept third-party sellers. Some sources claim that Amazon had not expected to make profits for at least four years, a sluggish growth that caused shareholders to complain that the company’s profitability was not fast enough to justify their investments in the long term. The internet bubble burst that occurred roughly from 1995 to 2000 as a result of the extreme growth in the usage and adjustment to theinternet destroyed many e-companies.


However, Amazon survived this bleak period and moved on to become a huge participant in online sales. Towards the end of 2001 Amazon finally turn edits first profit of $5 million at 1¢ per share on revenue of over $1 billion which was extremely little but it proved that Bezos’ unorthodox model of business could actually succeed. Between 2001 and 2011, Amazon experienced rapid growth. In 2002, the Amazon Web Services was launched for developers to include features of Amazon.com into their own websites. In that same year, Bezos launched the concept of "two-pizza teams" to the company. It was a concept that involved organizing employees into groups consisting of less than ten people – the ideal amount that would-be satisfied by two pizzas for dinner – who were expected to work independently. The teams were given strict goals and equations were used to measure their success. Bezos once said, "Communication is a sign of dysfunction.


It means people aren't working together ina close, organic way. We should be trying to figure out a way for teams to communicate less with each other, not more." It was a widely hated concept among the Amazon employees due mostly to the stress involved. In 2004 Amazon’s online shopping sales finally surpassed the book sales for the first time in the history of the company. In 2005 the now extremely popular membership program, the Amazon Prime was launched. In 2007 Amazon launched new services like the home grocery delivery service, the online music store and the now-famous electronic reader. They were labelled Amazon Fresh, Amazon Music,and Amazon Kindle respectively. In 2008 Amazon released a search feature that costumers would pay for which allowed advertisers to direct Amazon traffic to their own sites. This feature was named Product Ads.


Amazon in Recent Years In 2010, the Kindle electronic books sales finally exceeded that of printed books for the first time in the history of the company. By 2011, Amazon had grown to be an employer of up to 30,000 full-time employees and at the end of 2017; the number had skyrocketed to 566,000 worldwide. In June 2017, Amazon announced its intention to use $13.4 billion to acquire Whole Foods; an extravagant supermarket chain with morethan 400 stores, a move that media experts figured would strengthen its physical presence. By August the acquisition was approved. As of August 2018, Amazon owns a 5% share of retail spending in the US as well as a 43.5% share of online spending with a net income upwards of $3 billion. As at 2018, Amazon net worth was valued at$1 Trillion making it the second company in the world to reach that mark.


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