Amazon Evolution

Week Two Assignment
Melinda K. Siegford
Business Information Systems XBIS/219
June 19, 2011
Jonathon Robert

Amazon Evolution
Amazon.com, Inc. is a U.S-based multinational electronic commerce company, headquartered in Seattle, Washington, and is the largest online retailer in the United States as of January 2010, according to Wikipedia the free encyclopedia.
Founded in 1994
Amazon.com was founded in 1994 by Jeff Bezos, and the site went online in 1995, with the original name being, Cadabra, Inc., which was later changed when it was discovered that people sometimes heard the name as ???Cadaver,??? according to Wikipedia the free encyclopedia.
Change in Name
Amazon.com was the name that was chosen, named after the Amazon River. This name was chosen because the Amazon River is one of the largest rivers in the world and so was believed that the name suggested large in size.
Online Bookstore
Amazon.com started off as only an online bookstore, and later grew to an online retailer that sold many items, from books to CD??™s, DVD??™s, computer software, and more.
Strategy
Amazons strategy was to revolutionize retailing, by being the largest online retailer. Amazon spent 12 years and two billion dollars building the infrastructure of its online store, which is among the biggest and most reliable in the world, and has decided to provide a series of computing, storage, and other services that make its infrastructure available to companies and individuals to help them run the technical and logistical parts of their businesses (Siegford, 2011).

Amazon.com, Inc. is a U.S-based multinational electronic commerce company, headquartered in Seattle, Washington. Amazon.com, Inc. as of January 2010 is considered to be the largest online retailer in the United States, with nearly three times the Internet sales revenue of their runner up, Staples, Inc., according to Wikipedia the free encyclopedia.
Amazon.com was founded in 1994, by a man named Jeff Bezos, who started the company under the original name of Cadabra, Inc., although founded in 1994; the site did not go online until 1995. When the company starting with the name of Cadabra, Inc., it was soon discovered that people sometimes heard the name as ???Cadaver??? and was changed to ???Amazon.??? This was the name that it was changed to, being named after the Amazon River, because this is one of the largest rivers in the world and so was believed that the name suggested large in size. Because they wanted to become the largest online retailer, this was a good name for their company.
When the company started their online site in 1995, they were no more than an online bookstore. The company soon changed and they began selling not only books, but also CD??™s, DVD??™s, MP3 downloads, computer software, video games, electronics, apparel, furniture, food, and toys according to Wikipedia the free encyclopedia.
Amazons strategy was to revolutionize retailing, by being the largest online retailer (Siegford, 2011). Amazon spent 12 years and two billion dollars building the infrastructure of its online store, which is among the biggest and most reliable in the world. As Amazon has grown, the online retailer has begun to provide a series of computing, storage, and many other services that make its infrastructure available to companies and individuals to help run the technical and logistical parts of their businesses (Siegford, 2011).
Amazon is not necessarily moving away from its core competencies of being a leading online retailer; rather the company has begun offering other types of services to companies and individuals. Although Amazon has not shown consistent profit growth, and their profits have fallen, the company still seems to be working toward its core competencies; however, it has become increasingly challenging because of the increasing competition with other online retailers and websites.
The strategy that Amazon has taken, seems to be a wise one, with the sense that they are only using 10% of its processing capacity at any one-time, so their decision to offer these other services will keep them going strong (Siegford, 2011).
Three services that Amazon is providing to their customers are the Simple Storage Service (S3), the Elastic Compute Cloud (EC2), and the Mechanical Turk. The Simple Storage Service (S3) allows Amazon to charge 15 cents per gigabyte per month for businesses to store data and applications on Amazon disk drives. Through the Elastic Compute Cloud (EC2), Amazon rents out processing power, starting at 10 cents per hour for the equivalent of one basic server. The Mechanical Turk service combines processing power with networks of people who get paid to do the kind of work that machines cannot do well, such as recognizing inappropriate content in images or transcribing audio (Siegford, 2011).
Amazons Elastic Beanstalk is an easier way to quickly deploy and manage applications in the AWS cloud. Once the application is uploaded, the Elastic Beanstalk automatically handles the deployment details of capacity provisioning, load balancing, auto-scaling, and application health monitoring. Also with Elastic Beanstalk, the users always retain full control over the AWS resources, which are powering the user??™s application and can access the underlying resources at any time. Elastic Beanstalk leverages AWS services such as Amazon EC2, Amazon S3, Amazon Simple Notification Service, Elastic Load Balancing, and Auto-Scaling to deliver the same highly reliable, scalable, and cost-effective infrastructure that hundreds of thousands of businesses depend on today, according to Amazon Web Services.
Conclusion
Amazon.com Inc., as of January 2010 is the largest online retailer in the United States, and is a U.S-based multinational electronic commerce company, headquartered in Seattle, Washington.
Amazon.com Inc. was founded by Jeff Bezos in 1994 under the original name of Cadabra Inc., which went online in 1995. After discovering many people heard the name as ???Cadaver,??? the name was changed to Amazon, being named after the Amazon River, which is one of the largest in the world. Knowing that the Amazon River was one of the largest in the world it was believed that the name Amazon suggested large in size, so the new name of the online retailer became Amazon.com Inc.
Amazon.com started off as an online bookstore, which soon grew to an online retailer selling books, CD??™s, DVD??™s, MP3 downloads, computer software, video games, electronics, apparel, food, and toys. Amazon has grown larger and providing all of this, along with services offered to businesses and individuals.
Amazon had a strategy of revolutionizing retailing, by being the largest online retailer, which they have succeeded in doing. They had a core competency of becoming the leading online retailer, which they have indeed done, and grown to provide services to businesses and individuals. Even through tough times of not showing consistent profit growth, the company continues to work toward its core competency, with the challenge of increasing competition with other online retailers and websites.
Amazon.com began providing the Simple Storage Service (S3), the Elastic Compute Cloud (EC2), and the Mechanical Turk to businesses and individuals, providing growth for the company. Amazon has started providing the Elastic Beanstalk Service, which allows an easier way to quickly deploy and manage applications in the AWS cloud.
Amazon has continued to improve their services over the years and has succeeded in being the largest online retailer in the United States, with nearly three times the Internet sales revenue of their runner up, Staples, Inc.

Reference
Amazon. ( n.d.). In Wikipedia the free encyclopedia. Retrieved from http://en.wikipedia.org/wiki/Amazon.com#History
? Amazon Web Services LLC.? (2011).? AWS elastic beanstalk.? Retrieved from http://aws.amazon.com/elasticbeanstalk/
Siegford, M. K. (February 20, 2011).