Programme Name: Master in Business Administration

Course Code: MGMT 5711

Course Name: Managing Creativity & Innovation
Report

Submitted By: Submitted To:

Student Nam: Sailesh Shrestha Teacher Name: Shoba Sapkota
IUKL ID: 042102900056 Department: MGMT 5711
Semester: 4th Semester
Intake: May 2021
Table of Contents
Introduction.................................................................................................................................................3
History.........................................................................................................................................................3
Impact of Leadership in Amazon.................................................................................................................4
Change in amazon.......................................................................................................................................6
Challenges faced by amazon.......................................................................................................................8
Growing the cloud...................................................................................................................................8
Retail threat.............................................................................................................................................8
Conclusion...................................................................................................................................................9
References...................................................................................................................................................9
Introduction
Amazon (Amazon.com) is the world's largest online retailer and leading provider of cloud
services.

Amazon originally started as an online bookstore company, and has morphed into an Internet-
based business focused on providing e-commerce, cloud computing, digital broadcasting, and
artificial intelligence (AI) services.

In keeping with Amazon's sold-to-shop approach, the company offers a range of flagship
merchandise and inventory that allows consumers to purchase apparel, beauty products, gourmet
foods, jewelry, books, movies, electronics, pet products, and furniture. Almost anything else you
can buy. Consumables and household items.

Amazon is headquartered in Seattle, and has separate websites, software development centers,
customer service centers, data centers, and fulfillment centers around the world.

History
Jeff Bezos, a freshman from Princeton University in 1986, quickly made his mark in the business
world, becoming vice president of Wall Street giant D.Show & Co. I retired in 1994 and started
my own company in Seattle, Washington.

After reading a report on The Future of the Internet (Seattle, 1994) that predicted 2,300% annual
growth in e-commerce in the garage space, Jeff Bezos decided to launch his new company on the
Internet. The result of this adventure was Kadabra, the forerunner of the Amazons.

When the company was born, it was dedicated to selling books online. "With more than 3
million books sold worldwide, this category of books has more articles than any other," the
company's founder admitted in an interview several years ago.

At the same time, constantly trying to increase turnover, the entrepreneur soon decided to rename
the company. Bezos chose the name Amazonas after consulting a dictionary. He chose the name
because of its association with the Amazon River and because it begins with the first letter of the
alphabet. The Amazon logo is from the A to Z.
Impact of Leadership in Amazon
Bezos decided that this new business would sell books over the web. This is due to the huge
global demand for literature, the low prices that books can offer, and the large range of print
titles available.

Amazon.com was launched on July 16, 1995, and quickly began an exponential growth for the
company and its web presence. After Amazon.com went online for 30 days without media
promotion, Amazon sold the book in all 50 US states and 45 countries.

Bezos wants the site to be as customer-friendly as possible and engage with all types of
customers. The company offers discounts, affordable prices, topic areas to explore, new featured
books, a recommendation center, access to customer reviews, and more.

Despite the fast take-off, not everything is rosy. It didn't take long before other companies started
attacking the new company, including Walmart who accused Bezos' business of stealing their
business ideas.

Amazon went public on May 15, 1997, trading under the stock symbol AMZN on NASDAQ.
211 times higher).

The business plan that Amazon initially decided to adopt was anything but mundane and
unexpected. The company did not expect to be profitable until four or five years later. Because of
this kind of "slow" growth, shareholders began to complain that the company wasn't turning a
profit fast enough to justify the investment. This is not enough for long-term survival.

In November 1997, Amazon opened an East Coast Fulfillment Center in Newcastle, Delaware to
serve customers on the East Coast.

Bezos continued to grow in 1998, expanding into other products such as music, video games, and
built-in movie theaters. Amazon.com finished the second quarter of 1998 better than ever.

In the latter years of the 20th century, Amazon devised a way for third-party sellers to sell used
goods in what they called zShops (now known as Marketplace). The program was a success in
the first few months, with a quarter of consumers buying something through the service. In
addition, Bezos ended the year in style with the prestigious "Person of the Year" award from
Time magazine.
In 2000, the company achieved a complete transformation by becoming a marketplace, allowing
users to find and sell a wide range of products and services online with the highest quality and
warranty on the market.

Having fully entered the 21st century, Amazon has taken another (big) step in its unrelenting
development. In 2002, the company continued to diversify with the launch of Amazon Web
Services (AWS). This service is a cloud service platform that provides various infrastructure
services such as storage, network, database, application services, messaging, and artificial
intelligence. AWS has a presence in 190 countries around the world. Its data centers are located
in the United States, Japan, Australia, Brazil, Europe and Singapore. The largest source of
operating income for Amazon is AWS software.

Joyo was acquired by Amazon in 2004. The company has sold and shipped books and other
media products to customers across the country. Joyo changed its name to "Amazon China"
when Jeff Bezos bought the company. The acquisition agreement also includes the management
of other Chinese subsidiaries and partners owned by Joyo.com. E-commerce is very popular in
China and it is one of the largest markets for e-commerce. China is one of the largest commodity
exporters in the country. The United States is a special country for Chinese manufacturers as the
number of sellers in China on Amazon continues to grow.

In 2005, he launched the popular Amazon Prime service. This service provides free delivery
within 48 hours for products sold by the Company and some third parties. However, it is usually
completed in one day.

When Amazon launched Fulfillment by Amazon (FBA) in 2006, it was a groundbreaking

program. FBA is a program that allows sellers to sell products on the Amazon platform, with the
advantage of being able to store products in our warehouse. Amazon is responsible for shipping
to customers, all refunds, processing returns, and providing the best customer service. We are
also responsible for providing the Services. customers rather than handling the whole process
yourself. Thus began Amazon's upward growth pyramid.

Third-party vendors are part of Amazon's core and are one of the most important revenue sources
along with Amazon's AWS. More than 50% of all Amazon sales come from third-party sellers.
Despite the company's rapid diversification, there are many projects Bezos hasn't touched on yet.
He started to acquire companies, Joyo (largest online book and electronics retailer in Chinese
market), Audible (audio book company), Zappos (shoe shopping site), IMDB, Good Reads, Kiva
Systems (robot company) started a new venture. ), Twitch (a social networking video game
streaming site), Whole Foods, The Washington Post, and more.

Finally, Amazon has developed its own innovations such as the Kindle, Echo, Alexa, Fire
Tablets, and Fire TV.

The company's success lies in thinking of people as customers rather than consumers, and always
thinking about quality and what customers really want. The long-term outlook, which was not
very confident at first, is now the key to success. Amazon has revolutionized the world of e-
commerce, the ability for customers to review products, wish lists, the convenience of one-click
shopping, and the flexibility of returns.

Change in amazon
Amazon has reinvented itself many times and has thrived through organizational change. Since
the company entered the Internet in 1995, the e-commerce giant has evolved under the leadership
of just one person: Jeff Bezos. When Amazon Web Services (AWS) started, most investors
didn't take it seriously. But ten years later, it has become the largest cloud retailer in the world. It
currently has more capacity than its 14 closest competitors combined, which shouldn't come as a
surprise.

When the company first launched its website, it only sold books. Think of Amazon like eBay or
Craigslist - websites that you visit for specific purposes. It's not a routine like Google or
Instagram. Gradually, they expanded Amazon's offering to CDs and DVDs. The Kindle is one of
Amazon's biggest innovations. It revolutionized the book publishing industry, and changed the
way books are read, sold, and distributed. According to some estimates, Kindle e-book revenue
exceeds $500 million annually. But Amazon never stops changing.

The product offering on the site has grown, new products have appeared, and the company has
sold more than 200 million products to customers around the world. Amazon's market value
exceeds $440 billion. It has grown from fewer than 34,000 at the end of 2010 to more than
750,000 full-time employees, primarily in fulfillment centers and warehouses, making it the
second largest employer in the United States.

Amazon has dramatically changed product delivery and warehouse automation. For example,
customers with an Amazon subscription get free two-day shipping. The changes will continue as
Amazon is considering delivering packages by drone within 30 minutes. Amazon's logistics
operations are a nearly impenetrable moat that few other companies have the resources and
capabilities to match. The company announced in April 2019 that it spent $800 million in the
first quarter to offer free one-day shipping to all Prime customers in the United States of
America.

In terms of hardware, Amazon learned from the failed launch of its Fire Phone in 2014. They
turned around and launched an entirely new tool, the Home Assistant. Alexa is so advanced, it
turns Apple's Siri into an outdated technology and tries to catch up with Google, the self-
proclaimed AI guru.

Amazon currently produces its own videos, TV series, and movies, and it won three Academy
Awards in 2017. After acquiring Whole Foods, Amazon began making changes to the grocery
chain, including price cuts, additional Amazon products, and a Whole Foods-Amazon merger. ,
and restructuring. Other programs include Whole Foods food delivery, rewards for customers
who use Amazon credit cards, and discounts for Prime members. They are looking to further
disrupt and control major retailers with Amazon Go.

Amazon's defining characteristic is its desire for change. What started as an online bookstore has
grown into a multi-sector behemoth. Amazon has transformed many industries, outperforming
less innovative competitors. If Amazon has guidelines, the customer comes first.

CEO Bezos uses symbolic behaviors like the famous "empty chair" to fuel customer obsession.
Ultimately, this symbolic gesture is important and designed to reinforce Amazon's principles of
leadership. Frequently received in messages.
Challenges faced by amazon
Growing the cloud
Amazon is well-known for being a site to buy toothpaste or books. However, the corporation is
earning the greatest money from its Amazon Web Services operations, which operate in the
background.

AWS is currently the leading provider of cloud computing services, but Microsoft, which has
actively attempted to sell large contracts to corporations and governments, is posing an
increasing threat. Microsoft won a multibillion dollar deal with the US government from
Amazon last year. Amazon is challenging the judgment in court.

The elevation of 53-year-old AWS native Jassy may provide insight into how Amazon plans to
expand going forward. About 60% of Amazon's overall revenue last year came from AWS.

According to Sucharita Kodali, an e-commerce analyst at Forrester Research, "Jeff Bezos

selected the IT man." "I have a feeling it was about the company's future being in technology."

AWS, according to Kodali, will likely be the source of the majority of the company's
development, as Amazon is unlikely to be able to make any significant retail acquisitions due to
regulatory scrutiny. She envisions initiatives like creating face recognition for governmental
organizations and believes that Amazon's prospects in cloud computing are endless.

Amazon's cloud services and retail are both "enormously essential," according to Mark Cohen,
head of retail studies at Columbia University's Graduate School of Business, but cloud services
have more potential. The "pervasive government provider" Cohen envisions for the federal, state,
and municipal governments is Amazon.

Retail threat
Amazon still has a lot of opportunity to grow in the e-commerce space, but large retailers like
Walmart are posing growing concerns by leveraging their own locations as delivery hubs.

Walmart and Target have increased curbside pickup for customers picking up online items the
same day before the outbreak. But that's speeding up because of the epidemic.
In several of its stores, Best Buy said before the end of last year that it was limiting the amount
of floor space designated for conventional shopping and allocating more to in-store pickup and to
enable delivery of online purchases. Walmart intends to construct warehouses on the premises of
its retail locations where autonomous robots will collect goods and make them available for
pickup in an hour or less. To meet curbside pickup requests and distribute online items, Target
has started automating its backrooms.

However, Amazon's advantage is insurmountable; according to research company eMarketer, it

accounted for approximately 40% of online purchases in the U.S. last year, followed by Walmart
at 5.8%, eBay at 4.9%, and Apple at 3%. Analysts claim, however, that big box retailers are
arming their storefronts, placing earnings pressure on Amazon, and driving them to expand their
distribution networks in order to compete.

Charlie O'Shea, a retail analyst at Moody's, said: "There is a lot of possibility for Amazon, but
the brick and mortar businesses have proved their locations are big-time assets."

Conclusion
From books, Amazon has expanded into other areas of business, from selling all kinds of
products to cloud services. In addition, consumer concerns have pushed Amazon to the top,
making it a giant to rival a few companies.

Over the past fifty years, in the full spirit of capitalist idealism, we have witnessed the creation of
many empires: empires on the cusp of growing and collapsing mercilessly wherever they go.
Amazon's case is no exception. Since its inception in the mid-1990s, Amazon has been
embroiled in many controversies. The company's business model has been criticized by
bookstores and the publishing industry. According to some workers, they work in the distribution
center in less favorable conditions. An investigation into Amazon's tax practices has also been
opened. These are just a few examples of how growth can come at a price. Amazon is about to
become a true giant and dominate the world of e-commerce globally (if it isn't already).

References

Companies History. (2013, June 18). Amazon.com. Companies History - the Biggest Companies

in the World. https://www.companieshistory.com/amazon-com/

Hall, M. (2022). Amazon.com. In Encyclopedia Britannica.

https://www.britannica.com/topic/Amazoncom

Yasar, K. (2022, June). What is Amazon? - Definition from WhatIs.com. WhatIs.com.

https://www.techtarget.com/whatis/definition/Amazon

Harris, J. (2020, November 18). How Amazon became a pandemic giant – and why that could be

a threat to us all. The Guardian; www.theguardian.com.

https://www.theguardian.com/technology/2020/nov/18/how-amazon-became-a-

pandemic-giant-and-why-that-could-be-a-threat-to-us-all

Palmer, A. (2020, September 29). How Amazon managed the coronavirus crisis and came out

stronger. CNBC. https://www.cnbc.com/2020/09/29/how-amazon-managed-the-

coronavirus-crisis-and-came-out-stronger.html

Shankar, V. (2021, February 3). How Jeff Bezos And Amazon Changed The World. Texas A&M

Today. https://today.tamu.edu/2021/02/03/how-jeff-bezos-and-amazon-changed-the-

world/

Smith, C. (2019, March 19). Amazon: The Ultimate Change Management Case Study. Change!

Change Management News & Tips; Change Management.

https://change.walkme.com/change-management-case-study/