How Amazon emerged as an 'everything store'

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How Amazon emerged as an ‘everything store”
Amazon, an American multinational technology company has been founded in 1994 and
previously recognized as Cadabra went online in 1995. Reports of McGurl (2016) have revealed
that it was in the same year that the company launched an online bookstore and within two
months its revenue raised by $20,000 per week. However, according to Bao and Chang (2014),
Amazon initially failed to accomplish significant prominence in e-commerce sector, mainly
operated as a supplier of household goods and lacked a proficient vision like other technology
giants like Google and Facebook. Amazon with its strategic leadership of CEO, Jeff Bezos has
combined domains of consumer retail, FMCG, healthcare, data science, entertainment and
robotics has substantially created a global business operation with synergies and economies of
scale which aided the company attain competitive advantages in the global technological sector.
As per Sucharita (2016), Amazon, with its initiation as an online bookstore retailer eventually
involved everything ranging from its book to read to the websites individuals regular consume
with several other retail and technological services.
At this point of discussion, Bao and Chang (2014) have noted that Amazon with its
considerable prominence in the field of digital commerce, it has developed to be considerably
more advanced than other technical infrastructure and data management which retained
company’s competitive advantage. Meanwhile, comprehensive studies of Sucharita (2016) have
revealed that Amazon by proficiently offering robust and reasonably priced technical support, it
launched Amazon Web services, which is a subsidiary of Amazon providing on-demand cloud
computing platforms to individuals, companies as well as governments. Such cloud computing
services like AWS currently has been generating revenue of more than $12 billion (Amazon.com
(2019). Furthermore, Amazon’s business operations did not stop at this juncture. Reports of

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Sucharita (2016) have mentioned that alongside with AWS, Bezos has been successfully
operating its hardware business segment comprising Kindles, tablets along with AI-powered
home speakers and recently launched doorbells which tend to compliment its product delivery
business. These evidences have aided the company in attaining a significant position as a leading
stakeholder in the international fin-tech sector.
Although, Bao and Chang (2014) have claimed that well established technological
companies are showing a tendency to disrupt financial services, Amazon has been strategically
operating its business by executing its cloud computing services to lower barriers in order to
make an entry for fintech start-ups and further recalibrate the technological sector. In addition to
its major achievements, Amazon’s customer service has been taken into consideration which
focuses primarily on the customer and uses predictions in order to determine probable fashion
trends (Amazon.com 2019). Murrell (2014) has noted that rather than investing on expensive
promotion and marketing initiatives, Amazon essentially relied on positive reviews along with
word-of-mouth marketing strategies to attain competitive advantages in the industry. As Amazon
truly realizes the needs and demands of its consumers, it is recognized as an organization which
proficiently energy and resources towards providing its buyers with extensive range of products
at economic price range thus successfully developing as an ‘everything store’.
Amazon’s innovative approach towards the company’s global supply chain management
Amazon within two decades has emerged as the most form eatable and leading force in
the retail sector. Amazon's original and innovative approach towards its supply chain
management has been essential to its achievements and further ensuring that it can attain millions
of items to its customer base with appropriate pricing and rapid delivery service than any other

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retail giants across the world (Yu et al. 2016). Such an innovative approach towards the
company’s supply chain management has altered its consumers’ expectations and demands for
shipping expenses and speed. reports of Ittmann (2015) have revealed that several small to
medium size businesses have constrained their resources and have being experiencing critical
challenges to offer their customers such as two day or even same day shipping in comparison to
Amazon’s Rapid service delivery. However, Ulmer (2017) has claimed that these new delivery
expectations are attainable for small and medium size businesses. According to Yu et al. (2016)
half of the items which are offered by Amazon are mainly from the small and medium size
business suppliers, thus having options to sustain the new standards established by the online
retail giant. Moreover it is important to highlight that Amazon’s successful launch of Amazon
Prime which is an annual membership which offers ‘free or today shipping’ services for over
thousands of items has received substantial prominence and success in the retail industry.
Considering shipping Amazon's products to fulfillment service where consumers can
Store pick pack or ship has been primarily based on the globalization of World Trade has been
highly effective for the business (Ittmann (2015). In the view of Chopra and Sodhi (2014)
fulfillment centres have the ability to reduce or eradicate the complexities of self manage storage
and further help in enhancing delivery timings as the company already comprises the
infrastructure in place and confirm the expand the costs across multiple clients during
globalisation. Reports of Ittmann (2015) as mentioned that same day and one hour shipping and
not identified as options which traditional third party logistics providers such as ups and FedEx
have been highly aware II and competent to handle such service delivery. However in relation to
Amazon’s outsourcing distribution across the world the company has shown immense
dependence on its own fleet of delivery vehicles in order to accomplish same day delivery.