Amazon

Definition

Amazon is a multinational technology company known primarily for its e-commerce platform, cloud computing services, digital streaming, and artificial intelligence. As one of the largest technology companies in the world, Amazon has transformed how consumers shop online and has significantly influenced the retail industry and technology sector as a whole.

5 Must Know Facts For Your Next Test

1. Amazon was founded by Jeff Bezos in 1994 as an online bookstore before expanding into various other product categories.
2. The company introduced Amazon Prime in 2005, which revolutionized customer expectations for delivery speed with its free two-day shipping offer.
3. Amazon Web Services (AWS) was launched in 2006 and has since become a significant part of the company's revenue, powering a large portion of the internet's infrastructure.
4. The company's success has led to it being one of the first companies to reach a market valuation of over $1 trillion in 2018.
5. Amazon's business model has significantly influenced global retail trends, pushing many traditional brick-and-mortar stores to adopt online sales strategies to compete.

Review Questions

• How has Amazon's approach to e-commerce changed consumer behavior and expectations?
  • Amazon's approach to e-commerce has dramatically changed consumer behavior by prioritizing convenience, speed, and personalization. With features like one-click purchasing and fast shipping through Amazon Prime, customers now expect quick delivery times and easy shopping experiences from all retailers. This shift has pushed other businesses to enhance their online presence and improve logistics to keep up with changing consumer expectations.
• Discuss the impact of Amazon Web Services (AWS) on the technology sector and how it has influenced competition among tech companies.
  • Amazon Web Services (AWS) has had a profound impact on the technology sector by popularizing cloud computing and providing scalable solutions for businesses of all sizes. AWS enabled startups and established companies alike to reduce infrastructure costs and improve efficiency. This competitive edge has prompted other tech giants like Microsoft and Google to invest heavily in their own cloud services, driving innovation and shaping the future of technology.
• Evaluate how Amazon's business model has contributed to both its rapid growth and criticisms regarding market competition practices.
  • Amazon's business model focuses on low prices, vast selection, and exceptional convenience, which have fueled its rapid growth and dominance in various markets. However, this aggressive approach has attracted criticism over its impact on small businesses and local retailers that struggle to compete. Additionally, concerns about monopolistic practices have led to increased scrutiny from regulators seeking to address potential anti-competitive behaviors that could harm consumers in the long run.

Related terms

E-commerce: The buying and selling of goods or services using the internet, which Amazon has popularized through its extensive online marketplace.

AWS (Amazon Web Services): A subsidiary of Amazon providing on-demand cloud computing platforms and APIs to individuals, companies, and governments on a metered pay-as-you-go basis.

Prime Membership: A subscription service offered by Amazon that provides members with benefits such as free shipping, access to streaming services, and exclusive deals.