ASSIGNMENT 1 INTRODUCTION AND ANALYSIS AMAZON e COMMERCE COMPANY

Amazon Revenue by Product...22 TIEU LUAN MOI download : skknchat@gmail.com... Until July 1995, he named thecompany Amazon after the Amazon River in South America, hoping that the company

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UNIVERSITY OF ECONOMICS AND LAW

FACULTY OF INFORMATION SYSTEMS

ASSIGNMENT 1:

INTRODUCTION AND ANALYSIS AMAZON E-COMMERCE COMPANY

Supervisor: Mrs Lam Hong Thanh

Student: Mai Thi Thu Quyen

Student ID: K214110847 Full name: Mai Thi Thu Quyen Class: K21411C

Ho Chi Minh City, October, 2021

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TABLE OF CONTENTS

LIST OF TABLE 3

LIST OF FIGURES 3

CHAPTER 1: WHAT IS AMAZON? 5

1.1 General information 5

1.2 History of company 5

1.3 Top Amazon Competitors 11

1.4 Executive Officers and Directors 11

1.4.1 Board of Executive Officers 11

1.4.2 Board of Directors 12

CHAPTER II: ANALYZE AMAZON’S BUSINESS MODEL 13

2.1 Overview of Amazon's business strategy 13

2.2 Diver into Amazon business models. 15

2.2.1 FBA Liquidations 15

2.2.2 Retail arbitrage 16

2.2.3 Private label 18

2.2.4 Wholesale 19

2.3 Amazon Annual Revenue 20

2.3.1 Amazon Revenue by Segment 20

2.3.2 Amazon Revenue by Product 22

TIEU LUAN MOI download : skknchat@gmail.com

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LIST OF TABLE

Table 1.1 Executive Officers of Amazon from January 20, 2021……… 10Table 1.2 Directors of Amazon from January 20, 2021……….11Table 2.1 The liquidations processing fee of FBA Liquidations………15

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CHAPTER 1: WHAT IS AMAZON?

1.1 General information

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Profit | Net income (Dec 2020): $21 billion

1.2 History of company

Figure 1.1 The change in Amazon's logo from its inception to present

Amazon is currently renowned as the "World's Largest Online Retailer," and thecompany has grown tremendously over many years to earn that distinction Jeff Bezos isthe mastermind behind this massive store He began to brainstorm these ideas in the early1990s when Bezos was researching the internet for D.E Shaw & Co (1), a worldwideinvestment and technology development business, he realized that books would be an idealcommodity to sell on the internet since book wholesalers already kept digitized listings oftheir books online However, Bezos' suggestion was rejected by Shaw The corporation wasunable to see the future that Bezos could create The future that eventually results in theestablishment of Amazon - a perfectly-currently successful company Nonetheless, Bezosstill chasing his goal and established the company in Seattle in 1994 under the nameCadabra, Inc., but the name was changed because it was noticed that people wereoccasionally mistaken for Cadaver in pronunciation Until July 1995, he named thecompany Amazon after the Amazon River in South America, hoping that the company'sscale would ultimately be big as the Amazon river's vastness, and also because

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it begins with the letter A, which will appear at the top of the alphabetical list After

months of strategic thought and preparation, Bezos launched the company website

Since its inception, Amazon founder, Jeff Bezos, has clarified that its primary goal

is to increase market share in and dominate the areas in which it operates, ignoring term profitability In just over a month, the company shipped books to every state in theUnited States as well as 45 other nations Its early success can be credited to Bezos' hands-

short-on approach He was so keen for the company to achieve quick momentum that he directlyassisted in its delivery operation, helping to assemble orders and driving packages to thepost office After going public in 1997, Amazon established itself as a renowned book store

by being the sole book retailer on AOL and Netscape's websites This same year, Bezoshand-delivered the company’s one-millionth order to a customer who ordered a Windows

NT manual and a biography about Princess Diana in Japan (2)

By 1998, the company had begun to broaden its product Amazon introduced itsonline music and movie businesses, as well as toys and electronics to its marketplace Atthe same time, the corporation grew overseas Amazon purchased online retailers in theUnited Kingdom and Germany and the Internet Movie Database (IMDb), which providedAmazon with the advertising resources needed to sell DVDs and videotapes Until now, notonly does it sell books, music, video, toys, etc., but Amazon also provides everything thatpeople require, such as clothing, watches, toys, games, baby products, sporting goods,jewellery, garden things, health and self-care items, cosmetic products, musicalinstruments, foodstuffs, industrial and scientific supplies, and so on Bezos accelerated theproduct expansion by purchasing Junglee, a comparative shopping site, and PlanetAll, acompany focusing on calendars, contact books, and reminders

The years that followed in Amazon's history continue to reflect the company'stremendous development The company raised $1.25 billion from a bond sale in 1999 (3) Inthe same year, Amazon collaborated with Sotheby's, an international art auction company,and built distribution centres to speed up the shipment and hold inventory By

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the conclusion of this year, the firm had sent 20 million things to 150 countries worldwide(4).

Due to a restructuring plan, Amazon cut 15% of its workforce in 2001 By 2002,Amazon continues to extend its product selection, including apparel from prominent shopssuch as Nordstrom, The Gap, and Lands End That same year, the firm received ICANN(Internet Corporation for Assigned Names and Numbers) certification, identifying Amazon

as a domain registrar (5) In 2005, Amazon Prime was introduced This shipping serviceassured two-day shipment to consumers from any location for $79 at first and is now $119per year It had created a great significant influence on retail at that point

Amazon launched its first food business in 2006, followed by the Amazon Freshdelivery service, which was available to Seattle residents The Kindle, an electronic andportable book reader, branded Amazon, was introduced in 2007 Because of the success ofthe Kindle, Amazon announced in 2011 that it was selling more electronic books thanphysical books 5 Aside from that, Amazon created two other websites: Endless.com,which links Amazon users to a portion of their site that sells shoes and accessories, andAskville.com, which allows users to ask questions and receive answers Brilliance Audiowas also acquired by Amazon in 2007

Amazon concentrated on the leisure and retail industries in 2008 Amazon VideoOnDemand was introduced The corporation purchased The Talk Market, an onlineshopping startup that assists merchants in creating video commercials, which allowAmazon to grow into the area of apparel as well Amazon purchased Zappos.com, a largeonline shoe and clothing retailer in 2009 in order to capitalize on the company's mastery ofcustomer care and its uniqueness

Amazon continues to learn from professionals in various fields by purchasingcompanies from a wide range of industries and incorporating their technology into theirown tactics So, with this method, Amazon's development appears to be limitless, alwaysimproving, expanding, and developing

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Amazon Studios was started in late 2010 and received more than 10,000 featurescreenplay submissions and 1,800 television pilots, of which it has put 17 films and ninetelevision series into active development (6) Content is distributed through theaters andAmazon Prime Video, Amazon's digital video streaming service, whose competitorsinclude Netflix and Hulu (7).

Additionally, in 2014, Amazon paid $4.6 million for the ".buy" domain, markingtheir area as the online buying center Following the relative success of the Amazon Fire

HD tablet and Amazon Fire TV, the business also debuted the Fire Phone in 2014 The FirePhone, on the other hand, was a colossal flop and was discarded barely a year later Thismistake in the company's prosperity cost $170 million

Amazon released the Amazon Echo in 2015, along with Alexa, a device thatperforms as both a speaker and an artificial intelligence assistant Alexa can place orders onAmazon.com, and play music, answer questions and interact with customers in their dailylives Moreover, by the end of 2015, Amazon became the world’s most valuable retailer,surpassing Walmart (8) Also, this year Amazon Web Services became the world’s leadingprovider of Cloud infrastructure services (9) By 2016, the company had hit $136 billion inrevenues

In 2017, Amazon invested $13.7 billion in acquiring Whole Foods in mortar retail inthe digital world Through this intelligence investment, Amazon received a great ofconsumer data that helped Amazon gain a fuller understanding of the food industry in order

to efficiently enter the food market Following the success of Echo device, which had beensold tens of millions and reached more than 100 million paid Prime members globally,Amazon music has been expanded to more than 30 countries Meanwhile, Amazon alsolaunched the Prime Wardrobe, a shopping service that allows you to try clothes on at homebefore you buy them (10)

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Figure 1.2 The milestones of Amazon from 1994 to 2017

In June 2018, Amazon acquired a $753 million for PillPack, an online pharmacythat allows consumers to buy drugs in pre-made dosages (11) This highlights that Amazonaims to play a more direct — and commercial — role in the realm of healthcare in thecoming years In November 2019, the company changed their branding from "PillPack, anAmazon company" to "PillPack by Amazon Pharmacy" (12) This is also the year in whichAmazon heavily put Alexa into everything They revealed that Alexa's deep neuralnetworks will be improved so that it can comprehend people who are whispering, ask betterfollow-up inquiries, and learn new languages quicker It can also predict athletic events andprovide answers to math, physics, and engineering questions (13)

In 2019, Alexa continued to be the star of Amazon with many new skills andfeatures were announced Although Amazon Studios, the company's film and televisionproduction arm launched in 2010, has suffered from movie flops In 2019, Amazon hadreceived eight Golden Globe nominations for movies and streaming shows

Amazon was predicted to be the most significant company in the 2020s after theappearance of Covid 19 in late 2019 Despite the epidemic, Amazon's net profit still

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increased This astonishing comes after the company spent more than $4 billion on

"incremental COVID-19 related expenditures in the quarter to help keep staff safe anddeliver items to consumers" (14) during the epidemic, according to Bezos After full year

2020, Amazon’s net income increased to $21.3 billion, or $41.83 per diluted share,compared with net income of $11.6 billion, or $23.01 per diluted share, in 2019 (15) By theend of 2020, Amazon ranked 3rd in the 10 largest technology companies in the world andbecome the biggest retailer on the planet

Figure 1.3 Amazon History Timeline from inception to 2021

1.3 Top Amazon Competitors

Alibaba Group Holding Limited

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Jingdong Inc.

Newegg Commerce, Inc

Facebook

1.4 Executive Officers and Directors

1.4.1 Board of Executive Officers

Jeffrey P Bezos 57 President, Chief Executive Officer, and Chairman of the

BoardDavid H Clark 48 CEO, Worldwide Consumer

Andrew R Jassy 53 CEO Amazon Web Services

Brian T Olsavsky 57 Senior Vice President and Chief Financial Officer

Shelley L Reynolds 56 Vice President, Worldwide Controller, and Principal

Accounting OfficerDavid A Zapolsky 57 Senior Vice President, General Counsel, and Secretary

Table 1.1 Executive Officers of Amazon from January 20, 2021

1.4.2 Board of Directors

Jeffrey P Bezos 57 President, Chief Executive Officer, and Chairman of

the Board

Keith B Alexander 69 Co-CEO, President, and Chair of IronNet

Cybersecurity, Inc

Rosalind G Brewer 58 Group President, Americas and Chief Operating

Officer, Starbucks Corporation

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Jamie S Gorelick 70 Partner, Wilmer Cutler Pickering Hale and Dorr LLPDaniel P Huttenlocher 62 Dean, MIT Schwarzman College of Computing

Judith A McGrath 68 Former Chair and CEO, MTV Networks

Indra K Nooyi 65 Former Chief Executive Officer, PepsiCo, Inc

Jonathan J Rubinstein 64 Former Co-CEO, Bridgewater Associates, LP

Thomas O Ryder 76 Retired, Former Chair, Reader’s Digest Association,

Inc

Patricia Q Stonesifer 64 Former President and Chief Excutive Officer,

Marthal’s TableWendell P Weeks 61 Chief Executive Officer, Corning Incorporated

Table 1.2 Directors of Amazon from January 20, 2021

CHAPTER II: ANALYZE AMAZON’S BUSINESS MODEL

2.1 Overview of Amazon's business strategy

It might be stated that Amazon's extraordinary success as an Internet retailer incomparison to many of its competitors has been partly attributable to its excellent businessmodel and quick responsiveness to unstop changing market from the inception To begin,Amazon picked the ideal product lines for E-commerce, with things that buyers did notneed to hold in person before purchasing: initially books, but then expanding to DVDs,music, cloud computing, and other media Amazon has so focused on diversification andexpanding its product offering to broaden its customer base and increase profitability sothat the company has placed a significant emphasis on expanding its product library topresent customers with various choices Furthermore, having a peer review system, simplecheckouts, user-tailored suggested products and making user needs changes proactivelymakes Amazon one of the best customer-rated online retailers ever

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In 2001, Amazon extended its electronic products and also created computer andmagazine subscription shops and developed strategic agreements with merchants such asTarget and Circuit City In November 2002, Amazon launched a new online clothing storewith merchandise from prominent brands such as The Gap, Cole Hahn, Osh Kosh, Land'sEnd, Spiegel, Old Navy, etc Amazon's diverse business model has enabled it to improve itsmarket capitalization and profitability and become recognized as the world's largest onlineretailer.

The company also focuses on increasing convenience with new features such as'Instant Order Update,' which alerts clients if they are going to purchase the same itemagain Amazon described itself as the "World's Biggest Selection," aspires to be the world's

"most customer-centric company," functioning via three main basic businesses: Onlineretail, Marketplace and other, and Third-party sellers Amazon also targeted theinstitutional sector and consumers in order to create a new source of revenue: renting outits site-building services to other firms When compared to other Internet businesses,Amazon owes much of its financial success to the site-building and hosting servicesprovided to customers such as Borders and Toys R Us

Figure 2.1 Basic business model of Amazon

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