ABSTRACT

As we all know Amazon was started with a brilliant idea to bring businesses to people’s doorstep. When it truly did, it made its founder insanely rich. Nowadays Amazon has its hands in almost all businesses ranging from selling anything to making movies and TV shows to providing cloud services to well-known entities.

Today Amazon is a company that wherever you live you must have heard of them. Over the years it has become such a mammoth that it presents a very tough challenge for its competitors to exist peacefully. Or rather it seems Amazon doesn’t even have a true competitor. Locally in some countries, Amazon still needs to ride the ladder but globally it is truly the King.

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Logo Transformation of Amazon over the Years

AMAZON’S Founder:-

There is no denying that Jeff Bezos is insanely rich. People find it very hard to comprehend the intensity of his richness. He is one of the few billionaires who refused to sign the giving pledge, started by Bill Gates and Warren Buffett. But mind you he has achieved this position through his incomparable hard work and immense struggle so he gets to keep every penny that is thrown his way but then also he should consider signing the pledge, in my opinion.

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Key Investment of Jeff Bezos other than Amazon

In the year 1999 Jeff Bezos was named Time magazine’s “Person of the Year”.

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Time Magazine’s Official 1999 Cover featuring Jeff Bezos as the POTY

If you look at the portfolio of Jeff Bezos you’ll agree with the saying of the economists that he’s not a good investor as his wealth is highly concentrated in one thing which is Amazon stocks. Unlike great investors such as Bill Gates and Warren Buffett, he doesn’t own anything significantly enough anywhere else. Owing stakes in different companies has allowed Bill to stay on the top for more than a couple of decades. But for Jeff Bezos owing a lot of Amazon made him the richest person in the world in the first place so no economists can really complain. But this model won’t keep him on the top for long, he needs to diversify his investment portfolio, which is what he did exactly. Recently in 2020 he sold over $10 Billion of Amazon stocks and invested elsewhere. He is following in the footsteps of great investors.

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This is the Actual Garage where Amazon was started by Jeff Bezos

THE SECRET ALGORITHM

There no denying that Amazon is the company that has changed the consumer market forever in terms of competitive prices and reachability to the customers. As a consumer, there has not been a better time to be alive. Amazon provides its customers with exclusive offers which are sometimes not available anywhere. Companies like Amazon and its other counterparts deliberately reduce the price of certain well-selling products to such an extent where selling them would fetch them a loss. This is done on purpose to gain a larger and stronger customer base as the company tricks their customers into believing here is the place where they find the cheapest product and nowhere else. But this partially true as Amazon thinks bringing more customers to their side is more essential than making a profit today, but in the future when this thing turns the other way around then what will happen, nobody knows.
Fun Fact Amazon very rarely turns a profit but on the other hand, its stock is among the highest in the world which provides them with financial independence.

Same But Different:-

Other companies whose sole work is to deliver products or food from pick up area to the delivery place is doing the same thing as Amazon. People think it is a revolutionary idea but the original idea which was made into a successful business was done by none other than its founder Jeff Bezos. During the initial years, the company started by selling books, and each order was delivered by Bezos himself on his bicycle.
If you dive a little bit deeper you would realize that this also is not an original idea, many people have tried and failed to execute this very idea but all of them failed but Jeff Bezos was the one who made it into a successful business model and benefitted the world with it.

Clever Than You Think:-

Amazon follows a very clever strategy as the main central fulfilment centre of Amazon for a particular country is in the population centre rather than in the geographical centre of the country. It is easier for them to ship products in and out of the fulfilment centre.
Also, Amazon has a fleet of many different companies that are not directed at the consumer rather large businesses and companies are benefiting from them, their sub-companies like AWS (Amazon Web Services).

In my opinion, I think Amazon has been able to do the thing which was very hard for others. It brought the whole market at your doorsteps minus the waiting that you have to do to receive the product but the company is tirelessly making efforts to reduce the latency and waiting period. The introduction of Prime membership is a solid example of that.
Also if you look closely you will find Amazon everywhere as if it is at war with the giants of the world like Walmart and Google.


HOW IT CHANGED THE WORLD

Amazon today has made the world unrecognizable, it made a simple yet complex business model and converted into a giant entity. It has brought sellers directly in contact with the consumers, by putting customers at their forefront. Customers are more powerful than ever before, they have more options than ever before, today they can make or break a product through their reviews. All in all, customers are king in the Amazon business model.

To our surprise, Amazon doesn’t only sell things to an average customer rather it has its hand in every business that we can imagine. Its like Amazon is at war with everyone. Their customers are doesn’t only include you and me rather big organizations are a part of their fleet, such as US Air Force, CIA, many other government entities.

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Market Capitalization:-

Amazon is the company whose share prices are among the highest in the world. It has made many investors insanely rich including its founder Jeff Bezos who is currently the richest person alive, surpassing the likes of Bill Gates. Though Amazon share prices have seen many ups and downs over the years in the end it has emerged victorious. Jeff currently owns 10.6% of Amazon, which is significantly less from previous years as he had to give away his 4% stake of Amazon as the divorce settlement.

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Microsoft stock is currently trading at $3201.01 per share (under the intial AMZN) with total outstanding share of 512 million at the time of writing this article.
Multiplying them will give us the market capitalization.

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Different Revenue Streams of Amazon

THINGS YOU DIDN’T KNEW ABOUT AMAZON

  • When the company was started its initial name was Cadabra Inc. and not Amazon. You’ll be surprised to know what Google was called before, it was called Backrub. Amazing isn’t it?
  • Jeff Bezos is so dedicated to his company that when the stock prices of Amazon during the great recession of 2009 fell from $113 to $6, he didn’t sell any of his shares. Today the shares are worth around $3,250 which makes him so wealthy.
  • It has a hidden meaning in its logo. The yellow arrow in the logo stretches from the letter ‘a’ to ‘z’ which symbolises that Amazon sells everything from a to z. Also, some people see it as a smile.
  • Amazon is a company that is not known for treating its lower-class employees in the best manner. During their working hours, they have to work very hard according to the needs of the company.

B’day of AMAZON is on 5th of July 1994.


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