Amazon river. Although, Bezos’s had no idea how

Amazon is the world’s online leading
store. It is more notoriously known as the “Everything Store”. The E-commerce giant
sells everything from groceries to the latest tech accessories and has taken
over the market by storm, filling 1,600,00 orders a day and counting. It has
also entered new markets along the way such as the international, entertainment,
delivery, and grocery market.  In fact,
Amazon couldn’t have become the gigantic online retailer it is today without
the structure of the company. Amazon functions on a hierarchical structure.
Jeff Bezos is Amazons founder and CEO, and has a team of 10 top executives who
report directly to him. The Seattle based company found an innovated way to
take online retailing to a new height, so high that brick and mortars are fearing
for their business.

Amazon did not start off by selling as
many of the products it sells today. Amazon first started in 1994, as an online
bookstore, founded by Jeff Bezos’s. Bezos’s was a Princeton graduate who
studied computer science and electrical engineering (Biography 2017). In 1995,
the company changed its name from Cadabra to Amazon which captured Bezos dream.
His dream was to one day own a company as big as the amazon river. Although, Bezos’s
had no idea how fast his company would take off in a time were online stores
were striving to survive. Biography.com (2017) explains, “Amazon.com sold books across the United States and in
45 foreign countries within 30 days. In two months, sales reached $20,000 a
week, growing faster than Bezos and his start-up team had envisioned”. Over the years as sales continued to rise Amazon began to
sell more products like music cd’s, software, toys, and even groceries. In
2007, Amazon introduced it latest invention the Kindle. Which allowed readers
to access e-books online instead of hardcover books. From 1998-2017 it has
acquired 91companies, which have contributed to its growth (Wikipedia 2017).
One of its latest and biggest acquisition’s is the purchase of Whole Foods. Buster
Coen (2017) states, “Amazon.com
Inc. is buying popular supermarket chain Whole Foods for $13.7 billion.
The deal is the priciest in Amazon’s history, with the former high-water mark being
the $1.2 billion Jeff Bezos and co. shelled out for online shoe store Zappos”. Purchases like these have opened the door for Amazon
to expand. Since then it has started Amazon Prime (membership service), Amazon
Prime Video (streaming service), Amazon Air (drone delivery service), Amazon
fresh (grocery service), and Amazon International, making it the leading online
retailer.

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Jeff Bezo’s, founder and CEO of Amazon started his
company out of his garage like most famous tech companies. Since the company
has skyrocketed, its moved its headquarters to Seattle Washington DC where it
acquired many officers who report directly to Bezo’s. Amazon’s team consist of
two CEO’s, six senior vice presidents, a corporate affairs officer, and a VP
Technical Advisor to CEO.  Eugene Kim (2017)
explains, “Jeff Wilke, CEO of Worldwide Consumer, Andy Jassy, CEO of Amazon web
services, Jeff Blackburn Sr. VP of Business and Corporate Development, Dave
Limp SVP of Amazon Devices Digital Management, Diego Piacentini, SVP of
International Retail, Brian Olsavsky SVP &CFO of Financial Administration,
David Zapolsky SVP &General Counsel, Legal, Beth Galetti SVP of Human
Resources, Jay Carney Corporate Affairs, Jeff Helbling VP Technical Advisor to
CEO”. Most of these officers are company veterans.  

Since Amazons start from an online book store to its
now “everything store” its revenue has grown tremendously. NASDAQ’s report
shows a revenue growth of $74,452,000 in 2013 to $135,987,000 in 2017 and its
stock price has increased from $256.08 a share on 1/02/2013 to a whopping
$1,170.00 a share today.

Earlier this year Amazon promised to bring 100,000 jobs to U.S.. Since
then it has exceeded its expectations and now has over the 500,000 employees.
Seth Fiegerman (2017) states, “Amazon revealed Thursday that it had 541,900
employees in the third quarter, up from a little more than 300,000 in the same
period a year earlier”. Although Amazon continues to provide jobs, it does not
get the same recognition for employee benefits as Google. In fact, it has had a
few acquisitions of harsh labor practices. Jon Swartz (2017) states, “Amazon has a troubling labor history, marred
by lawsuits, picketing, grueling work conditions, complaints of management
tactics and lower wages. Consider:
Amazon pays its warehouse employees 15% less on average than the
prevailing wage of other warehouse workers in the same region”. Despite
harsh acquisitions its employment is rapidly growing. Every potential employee must go through a hiring
process to become an Amazonian. Amazon explains, “First you must apply online,
second if your application meets the requirement, you will receive an email
informing you, third you must schedule and attend an Amazon new hire event, fourth
your pre-employment screening will be processed, fifth you will complete your
online training, sixth you will attend your scheduled start date” (Amazon
delivers jobs 2017).

Amazon was primarily an e-commerce and cloud computing site.
Over the years it has evolved into multiple industries. One of Amazon’s well
known industry in Amazon Video, an online movie and tv show streaming service. This
streaming service accounts for $1.9B of its revenue. Champaign Williams (2017)
says, “Today, that service
has about 80 million subscribers and
accounts for $1.9B in annual revenue”. In addition to the movie and tv
show industry Amazon has also entered the music industry. Its music streaming service
competes with other companies like Spotify, Apple Music, and Pandora. Although
it is not dominating this industry it brings in revenue in the billions. Williams
(2017) explains, “The company entered the fray
with streaming giants Spotify, Apple Music and Pandora in an industry that has grown
to roughly $2.3B — though
Spotify continues to dominate”. Another industry Amazon has taken over
lately is the grocery delivery industry. When Amazon first announced, it was
buying Whole Foods for 13.7B it sent other competitors running in fear. Amazon
entering this industry has kept other giant competitors like Walmart and Kroger
on its toes. Companies like these must force down their prices to compete with
the online retail giant. Williams (2017) states, “The acquisition was a
strategic move on Amazon’s part to better position itself for the logistics and
supply chain challenges that come with online-to-door grocery deliveries”.
To put it another way, in a recent HEB interview I was asked, “Who do you think
HEB’s biggest competitor is?” I responded, “Walmart”. To make a long story
short my answer was wrong. My interviewer responded, “Its Amazon”. She went on
explaining how Amazon has taken a lot of their business and how they must lower
prices just to keep up. With that in mine I think it’s safe to say this is
another industry Amazon is dominating. One of the biggest and known industry Amazon
is having difficulty achieving is the delivery market. Amazon conducted its
first drone delivery service in Cambridge, U.K. in just 13 minutes. Since then
its faced U.S. regulatory hurdles that’s kept it from expanding its own delivery
service. Georgia Wells & Laura Stevens (2016) explain, “One factor driving Amazon to take over more of its supply
chain are skyrocketing shipping costs, tied in part to consumers’ appetite for
speedy deliveries. In the third quarter, the Seattle-based company’s shipping
costs rose 43% to $3.9 billion”. If Amazon can get the Federal Aviation Administration
to approve them to fly beyond strict designated areas, it could become a full
delivery service like FEXEX and UPS.