1. Overview of the Company’s History
Amazon.com is a Fortune 500 electronic commerce company based in Seattle, WA.
Jeff Bezos became the founder and CEO of Amazon.com.
It was one of the first major
companies to sell goods over the Internet .
The company was originally incorporated in
1994 in the state of Washington and was reincorporated in 1996 in Delaware .
saw the potential of the internet to sell books online where the largest bookstore might sell
up to 200,000 titles, where he saw that using the internet could sell many times more .
Amazon.com was launched on the web in June 1995 and began service in the following
month. Amazon.com started out as an online bookstore and then quickly diversified by
adding other items such as VHS tapes and DVDs, music CDs, software, video games,
electronics, MP3s, clothing, furniture, toys and even food items. Amazon.com had its initial
public offering on May 15, 1997, trading on the NASDAQ, as the world first electronic stock
market exchange under the symbol AMZN .
When Amazon.com first entered the market, it had no big competition and there was no
main traditional player.
The number one supplier, Barnes & Noble, had only about one-
tenth of market share and no online presence .
While there was a multitude of
booksellers on the web, including book Behemoth, Barnes & Noble and the second largest
bookseller, Borders, Amazon.com still had the advantage of being there first.
Amazon.com moved into new product lines like CDs, video games, pet supplies, computer
software, electronics, and provides services like auctions and greeting cards, it found itself
up against dominant players in their markets, either offline, online or both .
Amazon.com evolved into the largest retailer with the work widest selection and in the mid-
2001, Amazon.com owned $19 billon market value through carrying out its wise investment
and partnership, and also its successful business strategies .
In 1999, Amazon.com
invested in HomeGrocer.com and DrugStore.com to expand its market share.
year Amazon.com partnered with Sotheby’s to launch Sothebys.amazon.com which brought
authenticated art and collectibles to purchase via auction.
In 2001, it partnered with
Borders.com to support its sales initiative .
Amazon.com also owned Alexa Internet,
Accept.com, Exchange.com, a9.com, (which allow users to search within the text of books as
well as search for text on the web), and the Internet Movie Database .