A m a z o n . c o m ’ s E - B u s i n e s s M o d e l P a p e r
P a g e
Amazon.com was founded in 1994 began their first operation by doing online bookstore.
Seattle, Washington was it first firm where it started doing services. First name for Amazon.com was
Cadabra.com which given by its founder, Jeff Bezos due to his pronouns that he like. The company is
the largest online retailer that has now expanded from beyond books. Amazon’s product line not only
includes books, but also music CDs, DVDs, computer software, home and garden items, toys & games,
apparel, scientific supplies, as well as groceries. That is quite an expansion since the company’s launch
in 1994, by its founder Jeff Bezos.
In recent years the company appears to be suffering especially in the books, music and video
category, and its competitors are taking advantage of the Amazon's vulnerability (O’Brien, 2009).
Moreover, the company’s total revenue growth is also declining. Based on the facts presented, I also
believe that Amazon has lost its identity by expanding into markets beyond books that includes general
merchandise. I believe that this expansion diverted the company’s attention from books, and
unfortunately spread the company too thin to compete effectively in the book selling area, therefore
causing the company to lose its identity in that market. Amazon is an American e-commerce in terms
of selling its major goods via internet and it was an iconic stock, late1990. Even though it's get problem
due to its business model Amazon.com still having their first annual profit in year of 2003. Finally
Amazon .com comes out with its first profit in the fourth quarter of 2002.
Amazon.com being called as unusual initial business plan because of they didn't want to turn a
profit over four to five years. Due to it slow growth in order to reach the profitability, Amazon.com
being protest by their stakeholder. Profitable of this firm
still continue for every year net income was
$35.3 million in 2003, $588.5 million in 2004,
$359 million in 2005, $190 million in 2006, $470