Amazon Case Study

Introduction

Amazon.com.is an American  electronic commerce company with headquarters at Seattle,Washington. It is the biggest Internet-based retailer in the United States. Amazon.com begin as an online bookstore, butdiversifie after that,selling DVDs, Blu-rays and CDs, , , software, videogames, electronics, apparel, furniture, food, toys and jewelry. The company also produces consumer electronicsnotably, Amazon Kindle e-book readers, Fire tablets, 

Fire TV and Fire Phone and is the  largest provider of cloud computing services in the globe.Amazon has sells some low-end products like USB cables under its own brand AmazonBasics.Amazon has divide retail websites for all the worldwide country for its business. Amazon also provide international shipping to some other countries for some of its products.

This company was founded in 1994 by Bezos  In 1994, Bezos resign his employment as vice-president of ., a Wall Street firm, and shift to Seattle. He started to work on a business plan which then  become Amazon.com. Jeff Bezos incorporated the company as "Cadabra" on July 5, 1994 and eventually as Amazon.com in 1995. Bezos changed the name cadabra.com to amazon.com due to it sounded too much like cadaver.

The company began as an online bookstore, an idea come with discussion with John Ingram of Ingram Book, along with Keyur Patel a stockholder of Amazon. In the beginning of two months of business,  Since June 19, 2000, Amazon's logotype has featured a curved arrow leading from A to Z, representing that the company carries every product from A to Z, with the arrow shaped like a smile.

As such, the company's focus on growth continued. In 1999, it launched an online auction service entitled Amazon Auctions. It also start provide toys and electronics and then catogories its product offerings into different stores to make it easier for customers to shop for certain items.

The overall development of Amazon.com is. In the Early 1990  the internet has spread used and personal computer are wide used for business and households got hooked up in some form or another to Internet providers and Web browser software. As the company found that the electronic commerce will be an opportunity they start to offer variety product on the website .

In 1997. After less than two years of business running, Amazon.com make the company public listed in May 1997 with an initial public offering  of three million shares of common stock. With the proceeds from the IPO, Bezos went to work on improving the already productive web site and on adjusting the company's distribution capabilities.

To increse the company's distribution capabilities, and to strengthen the existing distribution center that came from such intense volume of orders, in September 1997 Bezos announced that Amazon.com establish an East Coast distribution center in New Castle, Delaware.. The improvements enhanced the company's stocking and shipping capabilities and increase the efficiency to meet customer  orders. The Delaware site not only got Amazon.com closer to East Coast customers, but also to East Coast publishers, which decreased Amazon.com's receiving time. With the new centers in place, Bezos set a goal for the company of 95 percent same-day shipping of in-stock orders, getting orders to the customers much faster than before.

In 1998 , the company continue to growth The company's customer database is growth as well it increase of 50 percent in only three months,. In other words, it took Amazon.com 27 months to serve its first million customers and only six months to serve the second million. This feat made Amazon.com the third largest bookseller in the United States. Amazon.com also expanded its business through a trio of acquisitions in early 1998. Two of the companies were acquired to further expand Amazon.com's business into Europe. Bookpages, one of the largest online booksellers in the United Kingdom, gave Amazon.com access to the U.K. market.

In 2009 further acquisitions occurred such as Zappos for $1.2 billion, Lexcycle.com, and SnapTell.com. 2009 also brought a lot of other exciting advancements such as the launch of the Xbox live store, the introduction of the Kindle 2 which reached record breaking sales in November, and the introduction of the Kindle application for iOS such as the Apple iPhone and iPod, as well as the new application for Android as well. The textbook trade in program was also begun in 2009 and the inauguration store was launched. 

Application

Philosophy 1

In Line 2.31, “ For the troops to plunder the resources of the enemy, they must be motivated by material rewards.” The troop should get rewards if he do a deed of merit in order to motivate other troops to get motivated too. Therefore, the first person who succeeds in capturing ten chariots in a chariot battle should be rewarded. The company should create a good reward system and ensure the rewards system will depend the performance of the staffs with the goals that the company want to achieve. The reward system will exist risk taking and healthy competition therefore make sure the employees get their reward with enough effort to avoid the unsatisfaction and argument in internal of the company. However, the employees may leave the company if the reward system does not fair to everyone and it will cause high turnover in the company so creating a good reward system is very important part to manage the employees of the company.

Philosophy 2

In Line 4.27, “Now in welfare, evaluation must be made as follow: First, estimating the degree of difficulty; second, assessing the scope of operation; third, calculation of own forces; and fifth, establishing the chances of victory.” As Wen Wu Ti mentioned that, who wished to start the war have to think about the cost. As starting a business is similar to waging a war, so the company have to think how to fully utilize their resource. Every company has their strength and the company should use their priority to maximize their profit. The five stages of this theory are estimating the degree of difficulty, assessing the scope of operation, calculation of own forces, comparison of forces and establishing the chances of victory. At the first stage, the company should understand the characteristic of the targeted market. After the first stage, the company should manage their scope of operation which have to know the process and operation that need in the company in the second stage. The third stage is all about the human resource to determine it is enough human source to handle the scope of operation and in turn serving the targeted market. Furthermore, the company should make a comparison of all of the employees; their areas of strength and weakness are known by the company in order to allocate the job or task to the