Amazon was founded by Jeff Bezos in 1994 as an online bookstore. The starting point was modest but with Bezos’ ambitions. Gradually, the company began to expand operations and add new product categories. In 1997, Amazon’s IPO was the beginning of its journey to becoming one of the most valuable companies in the world.
In 2022, it lost its trillion-dollar status. But at the end of that same 2022/early 2023, Amazon regained its revered status. At the time of writing, the company is the 5th largest market capitalization company in the world.
Innovation
Amazon has become famous for its innovations that have changed the way we consume goods. So what are these innovations? There are four of them:
- Next-day delivery. Amazon has made a delivery boom! The company introduced the concept of next-day delivery, allowing customers to receive their ordered items the very next day. This revolutionary approach to e-commerce also raised consumer expectations of other retailers. Before Amazon, delivery could take more than one week.
- Amazon Prime. This is a subscription that offers store members free shipping on a host of products, streaming video, music, e-books, and other benefits. Amazon Prime has been a key factor in attracting millions of subscribers and creating brand loyalty.
- Cloud computing. Amazon Web Services (AWS) offers computing resources in the cloud for businesses and developers. This area has quickly become one of profitability and growth. AWS helps companies avoid the cost of their own infrastructure and achieve flexibility and scalability in the use of computing resources.
- Artificial intelligence and voice assistants. Amazon has developed its Alexa voice assistant that works with Echo devices. Alexa has become popular in the smart home and consumer electronics industry, helping users control devices, get information, and order items through voice commands.
The list goes on and on, as the company is always evolving, investing in different projects and innovating new things. It tries to compete in many directions: Amazon Prime Video has become a competitor to Netflix, Blue Origin (only owned by Jeff Bezos) directly competes with Virgin Galactic, and so on.
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Impact on the global economy
Amazon has a significant impact on the global economy in several ways:
- Jobs and employment. Amazon has become one of the largest employers in many countries, creating jobs in logistics, technology, and other industries. The company offers a variety of employment opportunities, especially during economic downturns. The company has 1,541,000 employees.
- Retail Transformation. Amazon has changed the standard way of shopping by providing a wide selection of products, shipping convenience, and competitive prices. This has transformed the retail industry, forcing traditional retailers to rethink their business models.
- Digital Economy. Amazon’s services, such as AWS, offer the infrastructure and resources to drive the digital economy. A host of startups and businesses rely on Amazon services for their business, driving economic development.
- Technology leader. Amazon is a major player in technology and innovation. The company invests significant resources in research and development, contributing to the development of new technologies and industries.
Jeff Bezos and Amazon stock
The saying “a brilliant man is brilliant at everything” fits Jeff perfectly. Bezos’ talent as a creator of profitable businesses is undeniable. Here, of course, his skills as an investor/trader also played a role. Throughout 2021, the Amazon CEO sold shares of the company that he owned.
But selling in 2021 doesn’t seem so unprecedented, as Jeff Bezos has often sold Amazon stock. For this, he has often been criticized. So in May 2023, Bezos bought Amazon stock for the first time (in over 20 years) – it was the purchase of 1 share of AMZN stock at $115 per share. As you can see, Jeff is no worse than Elon Musk at trolling his “offenders” in social networks.
Conclusion
Amazon has shown the world how a small company can grow into a global technology giant with a significant impact on the world economy.
Amazon’s impact on the economy is felt in various aspects, from employment and retail transformation to the digital economy and technology leadership. The company creates jobs, drives innovation, and fosters new industries. Overall, Amazon continues to be a key player in the global economy, pushing boundaries and innovating. Its story serves as an example for other companies and entrepreneurs, showing that innovation and a commitment to customer satisfaction can lead to great success.
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