How Amazon Became an Ecommerce Giant | Amazon Detailed case study | Investuition

Amazon is an American multinational technology company that specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence. Founded by Jeff Bezos in 1994, Amazon started as an online bookstore and has since expanded into various other product categories such as electronics, clothing, and furniture.

Amazon's business model is centered around providing customers with a vast selection of products, competitive pricing, and convenience. To achieve this, the company has developed several key strategies, including:

Fulfillment by Amazon (FBA): FBA allows third-party sellers to store their products in Amazon's warehouses and take advantage of Amazon's shipping and customer service. This has enabled Amazon to offer a wider selection of products to customers and reduce delivery times.

Amazon Prime: Prime is a subscription-based service that offers customers free two-day shipping, streaming of movies and TV shows, and access to exclusive deals. This has helped Amazon build a loyal customer base and increase customer retention.

Amazon Web Services (AWS): AWS is a cloud computing platform that provides businesses with a wide range of services, including computing power, storage, and databases. AWS has become a key revenue driver for Amazon, generating over $45 billion in revenue in 2020.

Data-driven decision making: Amazon relies heavily on data to make decisions, from product selection to pricing and marketing. The company uses sophisticated algorithms to analyze customer behavior and preferences and optimize its operations accordingly.

Amazon's success has been driven by its ability to innovate and adapt to changing market conditions. The company has disrupted traditional retail models and transformed the way consumers shop. Amazon's focus on customer satisfaction and convenience has helped it become one of the most valuable companies in the world, with a market capitalization of over $1.6 trillion as of March 2023.