Amazon.com Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

Amazon.com was started as an online bookstore in 1994 by Jeff Bezos, former vice president of an investment management firm. The company was incorporated initially under the name of Cadabra, but later it changed and went online in 1995 by the name of Amazon. In the beginning, the company’s main focus was on selling books while claiming to be the largest online bookstore in the world. Amazon continued and went public in 1997 after an IPO.

Amazon’s business was operating at a good pace in the beginning with revenue of nearly $20,000/week. However, after the IPO, the company anticipated no profit for the next four to five years. This anticipation changed in 2001, when Amazon made a profit of $5 million. This proved to be the beginning of the company’s successful business(Reuters, n.d).

The idea of online website was based and boosted by a report, projecting a growth of nearly 2300% in web commerce activities in the near future. This made Jeff Bezos, Amazon’s CEO and President, to incorporate this idea in his business model and to expand his business by adding more products.

Amazon.com is not just a single website offering many products under a single roof;however it owns many other companies. Its subsidiaries include Audible, Zappos, Alexa internet, Junglee etc. The company is providing its products and services in 220 countries globally while having separate retail websites for almost 15 countries. At Amazon, any product from USB cables to consumer electronic items can be found and purchased(Universe, n.d).

Amazon’s history showcases many difficulties in the form of claims and suits, which were successfully settled by the company.Recently, Amazon became the most reliable retailer in U.S, leaving its one of the biggest competitors, Walmart, behind.

Business Process

Amazon.com is an online business that sells its products and services globally. The company operates its business online where orders are placed, accepted and delivered following a simple and basic e-commerce model. Amazon has vast number of suppliers providing the products at the lowest possible prices. The company follows a strong supply chain system and has definite set of rules and regulations for its suppliers as well. The company believes in selling its products at lowest possible prices without any compromise on quality.

Amazon is not just operating in retail business, but also it is dealing in internet services and its own electronics line of business in the form of Kindle. The company has diversified its business by not confining themselves to only retail business, but spreading in different line of business as well. However, these services are offered by the Amazon, but retailing serves as the main and core business for the company(Model, n.d).

Amazon is selling over 200 million products in USA categorized into 35 departments. These products are more than sufficient, however, there are many more products that are still not on their list and are demanded by the customers(Export-x, n.d).

Amazon provides a platform to the sellers around the globe to sell their products on their website. This serves as a medium for Amazon to enhance and spread their business. Moreover, adding more products to the product line will also enable Amazon to earn more profits. Amazon is operating in an environment with multiple competitors. Therefore, the company needs a strategy that can provide it a competitive edge over its competitor.

New Product Setup

The new product setup incorporates a complete predefined procedure to facilitate the sellers to place and sell their products. Amazon is already selling millions of products through its website. However, there is always some space for more. This space provides an opportunity to new sellers to enter in the market while benefitting Amazon as well(Amazon, 2015).

The new product setup is done and processed through a predefined procedure. This procedure serves as a standard for new sellers while incorporating a great deal of flexibility and ease to the new comers. The sellers are not just someone who just come and sell their products. However, they have become a part of Amazon’s business and their products become a part of Amazon’s catalogue.Amazon.com Case Solution

Process

Since any new product setup on Amazon is done through new sellers, therefore this all starts by making an account and registering on Amazon.com. The process comprises of multiple steps however, it is broadly categorized into three stages. These stages provide step by step guidelines to new sellers to sell their products(Amazon(, n.d).......................

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