Amazon

Amazon.com, Inc., commonly known as Amazon, stands as an American multinational technology company renowned for its diverse portfolio encompassing e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. With a reputation as one of the most influential global economic and cultural forces, Amazon consistently ranks among the world’s most valuable brands. As one of the Big Five American tech giants, alongside Alphabet (Google‘s parent company), Apple, Meta, and Microsoft, Amazon has transformed the way we shop and interact with technology.

Founding and Growth

Founded by Jeff Bezos in his Bellevue, Washington garage on July 5, 1994, Amazon initially emerged as an online bookstore. Over the years, it has evolved into the “Everything Store,” offering a vast array of product categories. Key subsidiaries include Amazon Web Services (AWS) in cloud computing, Zoox in autonomous vehicles, Kuiper Systems in satellite Internet, and Amazon Lab126 in computer hardware R&D. Notably, the acquisition of Whole Foods Market in August 2017 for US$13.4 billion significantly expanded Amazon’s presence in physical retail.

Disruptive Innovation

Amazon has earned a reputation as a disruptor, continually challenging established industries through technological innovation and ambitious reinvestment of profits into capital expenditures. In 2023, it ranks as the world’s largest online retailer and marketplace, leading provider of smart speakers, cloud computing services through AWS, live-streaming service via Twitch, and a dominant force in the internet industry, both in terms of revenue and market share. The success of Amazon Prime, a paid subscription plan with nearly 200 million subscribers worldwide, played a significant role in surpassing Walmart as the world’s largest retailer outside of China in 2021. Moreover, Amazon is the second-largest private employer in the United States.

Diverse Portfolio

Amazon’s diverse portfolio encompasses downloadable and streaming content through Amazon Prime Video, MGM+, Amazon Music, Twitch, and Audible. It is also involved in publishing books through Amazon Publishing and producing film and television content through Amazon MGM Studios. The company manufactures consumer electronics, including Kindle e-readers, Echo devices, Fire tablets, and Fire TVs.

Challenges

Despite its monumental success, Amazon has faced criticism and scrutiny on various fronts, including customer data collection practices, workplace culture characterized as toxic, censorship concerns, tax avoidance allegations, and accusations of anti-competitive behavior.

Historical Milestones

Amazon’s journey began on July 5, 1994, with Jeff Bezos selecting the Seattle area for its thriving technical talent pool. The company went public in May 1997 and expanded into selling music and videos in 1998. International operations commenced with acquisitions in the United Kingdom and Germany. Amazon Web Services (AWS) was launched in 2002, initially providing APIs for web developers before shifting to enterprise services with offerings like Simple Storage Service (S3) and Elastic Compute Cloud (EC2). The Fulfillment by Amazon program in 2006 allowed third-party sellers to use Amazon’s infrastructure.

Continued Growth

Amazon’s growth trajectory persisted through significant milestones, including the acquisition of Whole Foods Market in 2017. It emerged as the leading e-retailer in the United States, with approximately US$178 billion in net sales in 2017 and over 300 million active customer accounts worldwide. The company experienced substantial growth during the COVID-19 pandemic, hiring over 100,000 staff in the United States and Canada.

Leadership Transition

On February 2, 2021, Jeff Bezos announced his decision to step down as CEO, assuming the role of executive chair of Amazon’s board. This transition officially took effect on July 5, 2021, with former AWS CEO Andy Jassy assuming the position of CEO. In January 2023, Amazon initiated cost-cutting measures, resulting in the elimination of over 18,000 jobs, primarily in consumer retail and human resources.

Product and Service Offerings

Amazon.com serves as a comprehensive e-commerce platform offering a wide range of product lines, from media and apparel to groceries and automotive items. With country-specific websites and international shipping options, it attracts more than 2 billion visitors per month, making it the 14th most visited website globally. Notably, Amazon’s search engine results are influenced in part by promotional fees, and the company maintains localized storefronts with varying selections and prices.