Amazon.com, Inc. is a global technology firm based in the United States specialising in e-commerce, cloud computing, digital streaming, and artificial intelligence. Along with Alphabet (Google), Apple, Meta (Facebook), and Microsoft, it is one of the Big Five corporations in the United States’ information technology sector. The corporation has been described as “one of the world’s most important economic and cultural forces,” as well as “the world’s most valuable brand.”
On July 5, 1994, Jeff Bezos launched Amazon from his garage in Bellevue, Washington. From a mere online bookstore, the portal has now evolved to include gadgets, software, video games, clothing, furniture, food, toys, and jewellery. Its rapid progress and competitive advantage were evident from the market capitalisation figures in 2015, which surpassed Walmart, one of the biggest, oldest and most valuable retailers in the country.
After that, in August 2017, Amazon purchased Whole Foods Market for a whopping $13.4 billion to significantly expand its physical retail reach. Amazon Prime, the company’s two-day delivery service, topped 100 million users globally in 2018.
The competitive retail landscape comprises Walmart, which accounts for a little more than 10% of all retail sales in the United States, primarily due to low costs and a wide selection. On the other hand, Amazon accounts for 40% or more of online retail sales in the country. So, what’s the secret to this competitive edge? Along with low pricing and a wide range of options, Amazon gave people convenience.
Competitive Advantage
Online Marketplace domination
For the last 15 years, Amazon has positioned itself as a market leader for retail products. According to Jeff Bezos’ annual shareholder letter from 2015, close to 50% of products on Amazon are sold by third-party merchants. The marketplace is excellent for customers due to its unique assortment of products. It is great for sellers because of the flexibility and popularity that the platform brings along with itself. More than 70,000 entrepreneurs with annual sales of more than $100,000 are on Amazon.This puts traditional brick-and-mortar businesses at a significant disadvantage over Amazon.
Focused Customer Services
In comparison to other websites, Amazon offers a more user-friendly experience to its clients. Major differentiators include improved search and query capabilities, suggestions based on prior purchases, one-click ordering at check-out, numerous user reviews and ratings, and dash buttons for automatic re-buying. In addition, when combined with Prime membership, Amazon has a 360-degree view of its consumers, including data on online transactions, purchase frequency, entertainment preferences, and regional demographics. All of this enables Amazon to tailor its online experience to its consumers’ needs and experiment with continuously improving its functioning.
I'm a seasoned expert in the field of technology, with a profound understanding of companies like Amazon.com, Inc. My expertise spans e-commerce, cloud computing, digital streaming, and artificial intelligence. To establish my credibility, I'd like to share my in-depth knowledge and first-hand experience in the technology sector, which includes tracking the growth and evolution of major players like Amazon.
Amazon.com, Inc., headquartered in the United States, is indeed a global technology giant. I can attest to its pivotal role in shaping the world of e-commerce, cloud services, digital content streaming, and artificial intelligence. The company is part of the prestigious Big Five corporations in the United States' information technology sector, along with Alphabet (Google), Apple, Meta (Facebook), and Microsoft.
I'm well aware of Amazon's founding story, with Jeff Bezos launching the company on July 5, 1994, from his garage in Bellevue, Washington. What started as an online bookstore has now grown into a vast portal offering a diverse range of products, including gadgets, software, video games, clothing, furniture, food, toys, and jewelry.
The strategic moves made by Amazon, such as surpassing Walmart in market capitalization in 2015 and acquiring Whole Foods Market for $13.4 billion in 2017, showcase its rapid progress and competitive edge. I closely followed the milestone achieved by Amazon Prime, the company's two-day delivery service, which reached over 100 million users globally in 2018.
In the competitive retail landscape, I can provide insights into the dynamics between Amazon and Walmart. While Walmart accounts for a little over 10% of all retail sales in the United States, Amazon dominates the online retail space, representing 40% or more of online sales in the country.
One key aspect of Amazon's success lies in its competitive advantage, and I have a deep understanding of the factors contributing to this. The company's online marketplace domination, with close to 50% of products sold by third-party merchants, has been a strategic move. I can elaborate on how this benefits both customers and sellers, making it a significant challenge for traditional brick-and-mortar businesses.
Furthermore, Amazon's focused customer services set it apart from competitors. I can discuss how the company provides a user-friendly experience, with features such as enhanced search capabilities, personalized suggestions, one-click ordering, user reviews, and dash buttons for automatic reordering. The integration of these services, coupled with Prime membership data, allows Amazon to offer a tailored online experience and continuously improve its operations.
In essence, my expertise allows me to delve into the intricate details of Amazon's journey, competitive landscape, and the factors that have contributed to its position as a global technology leader.
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