Amazon.com, Inc: Retailing Giant to High Tech Player? Harvard Case Solution & Analysis

Amazon.com, Inc: Retailing Giant to High Tech Player? Case Solution

History of the company

Amazon.com was founded by Jeff Bezos in 1994. He established Amazon.com with the vision of making it the most customer centric business in the world. Core competency of Amazon has helped it to achieve its targeted goals,which is dealing in low prices. Furthermore, it has been also advantageous for Amazon that the company has preferred customers’ opinion and built its network from an online bookstore-into the largest retailer in the world.

The retail store of Amazon continues to sell a large range of categories to its customers online. It has maintained items like sports and other outdoor equipment, garden supplies, home ranges of appliances, health, and beauty products as well. Moreover, it had a great profit margin through electronic devices by 2010 via media that includes books, magazines, music, digital downloads, video games, and DVDs in 2010 and it accounted for 43%of sales for the company. Furthermore, greater half of its sales was generated through mobile devices, computers, Kindle Fire, Kindle and Kindle touch as part of the mobile devices and other electronic devices. In fact, Amazon is considered as the one of the best Kindle hardware selling point.

The fast paced delivery along with low price strategy that includes preference for its customers at every stage has contributed in the growth of its business. The company has been able to incorporate world’s large cloud computing infrastructure using web services of Amazon over 190 countries.

Bezos also formed Blue Origin in order to reduce cost and enhance prevention of the light of space in order to provide better exposure of the solar system.

The Senior Vice President and Business Development Manager of Amazon, Jeffery M. Blackburn is working with Amazon since April 2004. He has worked as the Vice President of Amazon’s Business Development, Vice President of Customer Service, and Vice President of Operations Integration. The Vice President of Amazon Web Services, Andrew R. Jassy accounts for the infrastructure of technology atAmazon, whose efforts at Amazon have enabled Amazon to maintain software businesses and develop services of cloud-based infrastructure.  These services thus, are inexpensive, reliable, comprehensive, flexible, and scalable throughout the businesses of Amazon.

Steven Kessel has worked with Amazon since 2006. He contributed to Worldwide Digital Media progress of Amazon, being Senior Vice President of Worldwide Digital Media. Senior Vice president of Worldwide Operations, Marc A. Onettohas also been linked with Amazon since 2007.

Chief Financial Officer and Senior Vice President Thomas Szkutuk has also been affiliated with Amazon since 2002. Before Amazon, he was working with GE. Being CFO of Amazon, his responsibilities of the job revolve around internal audit, financial operations, tax, analysis, controller ship, treasury, and investor relations

The governor of Massachusetts Deval Patrick announced the origination of sales tax collection on the purchases of products made in Massachusetts. This announcement by the state government led Amazon to increase the retail prices of the product for its clients. Moreover, the government would be able to obtain approx. $45 million in revenue forthe state. Furthermore, it was considered by the native people that the exemption to Amazon could lead the local retailer industry towards a competitive disadvantage.

Amazon had to be concerned about the issue because tnot only implemented in Massachusetts, but also in different states like South Carolina, Nevada, Tennessee, Indiana, and Virginia. The basic reason of Massachusetts’ government to leverage this rule was to encourage local market competition in retailer industry. Hence, it contributed to the sales tax that increase the online prices of the products and local retail industry would flourish locally..................

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