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Amazoncom is an On-line retailer of originally books The company was established as a micro enterprise in the US in 1994 Since then it has enjoyed rapid expansion in all aspects of its operations including business turnover and a spectacular rise in share value since public floatation in 1997 New on-line sites based in Germany and UK and a distribution centre in Amsterdam were established in 1998 to cater for European markets On August 30 2000 Amzoncom launched its third site outside the US Amazonfr in France Amazoncom sells only on-line and is essentially an information broker It holds a relatively small though increasing inventory and outsources most aspects of its operations but not IT The key to its operation is to offer value added and sophisticated customised services a continuously expanding catalogue of products in terms of both quantity and range and deep discounts Alliances and partnerships with publishers other on-line retailers and technology providers are therefore strategic The ambition of the company today is to become a premier general on-line retailer by leveraging on its existing brand and business model Amazoncom Business Overview History When founder and CEO Jeff Bezos studied retailing opportunities on the Internet he decided on books because there was a broad field of book publishers but too many titles to be carried by a single store Everyone reads books but has different preferences about what she wants to read Although Jeff Bezos had no previous experience in the book trade he saw a business opportunity in selling books solely on the Web He started the company out of his garage in a Seattle suburb wrapping orders and then delivering them to the post office in the family car The characteristics of the books retailing industry make it amenable to electronic commerce a great variety of products and consumer tastes and tastes which hanker after a lot of information about the products Moreover there is room for bringing down margins
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