This is a company that changed the very essence of the trade, giving the popularity of sales via the Internet. Today we look at how Jeffrey Bezos created his Amazon. This is a fascinating story of one of the largest IT companies today.
How it all began
January 12, 1964 in Albuquerque, NM (New Mexico), born Jeffrey Bezos. Informed Jeff spent his childhood in Houston already. Bezos moved there as the head of the family (stepfather Jeffrey) got a job in the oil company Exxon.
From the very childhood, Jeff showed a strong interest in technology. All the time he was making some new things. Once even made a small alarm. From studies in Bezos everything was fine. School, he graduated with honors. The next step was the young man's arrival at Princeton University in 1982. And in the years the institute Jeffrey took an interest in learning. Needless to say, that he graduated from Princeton c honor.
Bezos was the first work place on Wall Street. He was an ordinary computer users. After a while, Jeffrey joined the company Fitel. There he turned up much more interesting work. The duties included working Bezos to deploy a large network. Already, 26 years young man becomes a vice-president of the company's Bankers Trust. This is a phenomenal career. A young man who has just turned 26 years old, is still too little experience to hold the post of vice president. For Bezos is not applied, as it always was an outstanding personality. At that Bezos has not stopped. Already in 1990 he worked in Shaw, while he was a senior vice president. This was the last place of employment Jeffrey - the whole rest of his life will be linked to Amazon.com.
In 1994, Bezos dismissed from Shaw. By the time he was already a married man, and he had the idea to organize a sale of books via the Internet. Perhaps in some way it was affected by his wife, who was a writer. Whatever it was, but while the Internet is rapidly gaining popularity. No, he was not yet a mass phenomenon, but it became clear that this should happen. Bezos decided to go to Seattle to do their own thing. So in 1994 he left New York.
In 1995, Amazon.com began its work. The rise of Amazon has begun with the rise of many Internet startups that do not survive the collapse of the dot-com. It should be noted that the strategy of the company immediately Bezos was one important difference, seriously separating his company on numerous Internet start-ups - he knew how to earn money and counted on a long-term strategy. Jeffrey Bezos is interested in long-term perspective, rather than rapid growth. There is nothing surprising in the fact that Amazon has survived the dotcom crash.
At the same time as other Internet companies grew Amazon very quickly. This caused quite mixed reviews in the press on the company. Someone claimed that Amazon will fall just as fast as it grows, and someone wrote about the genius of Jeffrey Bezos. In general, the common opinion that the company will not.
May 15, 1997 took out the company's IPO. Like many other Internet startups Amazon was a tidbit for investors. And those who invested in the company, Jeffrey Bezos, has paid off.
The uniqueness of Amazon
Why Amazon.com was to become the largest online store in the world? The answer to this question is not so simple. But if you think about it, emerges a few moments. First, a company focused on the long term. Secondly, Amazon has evolved all the time. The company just crazy about customer focus. Amazon.com first introduced this option as the customer reviews on this product, even negative. It is interesting that the producers at first resisted the introduction of a given function. They thought that this may adversely affect its sales. Somehow, Bezos managed to convince them. And not in vain. Practice has shown that ratings are only increasing sales.
Another factor in the success of the company is that it does not become obsessed with selling books. Instead, today Amazon sells various goods, including machinery, DVD and even digital music. If we talk about governance in the Amazon, the situation is very complicated. The company believe that success can be achieved only small groups. That's why Jeffrey Bezos at Amazon is not particularly difficult to control vertical hierarchy. Everything is built on the work of small groups. In selecting personnel the company carefully considers each applicant. It needs only the best people.
Important role in the successful sales of Amazon is correct and marketing company. She managed to construct a system of sales at which the common people themselves start to promote products Amazon. Yes, we are talking about affiliate programs Amazon. Any site owner can sell products through your resource Amazon, receiving a percentage of sales. This powerful system of any crises are not terrible. During the dot-com collapse Amazon lost as much as $ 500 million. But it is quite unable to knock the company out of a rut. And now it starts new projects that gossip in the world.
About the founder put in a word ...
In 1999, Time magazine named Bezos Person of the Year Jeffrey. The choice was obvious. It was the dot-com boom. And Amazon was the most interesting company in the market that promote online sales. It is interesting that today, Jeffrey gets a fixed salary in the company, which corresponds to the level of 1998. That's when he decided that his salary should not grow from year to year.
If you look at the appearance of the founder of Amazon, then you will not say that he is the founder of one of the largest companies in the world. However, this applies to almost all the IT-business people, so there's nothing surprising.
It is worth noting that Bezos ostanavilsya not only on a single project. In 2000, he founded Blue Origin. The company was established in order to develop a line of suborbital tourism, as does the Virgin Galactic, Richard Branson. While Bezos is far from an enterprising Briton. But then there still will be. In the end, Jeffrey childhood dream to be an astronaut.
Other areas of Amazon
The last time the world is gaining in popularity the concept of cloud computing. Amazon company now leases out their computers for complex calculations. Moreover, the company puts it in the future for this type of earnings, giving him the key priorities (and that said representatives of the world's largest online retail store).
Amazon is engaged in the rental of its computing capacity since March 2006. Vice-president of Amazon Web Services recently announced that the company is very satisfied with the current income with "clouds", as well as future prospects for their growth. However, exact figures on the costs and revenue Amazon Web Services does not lead. Forbes magazine last year decided to calculate the approximate revenue from Amazon rental computers. Turned out quite interesting results.
It is known that most of the computers in the park is in the Amazon region of $ 300. On average, each computer Amazon brings in $ 0.1 per hour (in the case of work, but if it is simply used to store information that Amazon takes $ 0.18). This means that Amazon can have a year from each computer 876 dollars. It should be borne in mind that the company is still spending money on electricity and maintenance, but they usually do not exceed the cost of the computer. On average, Amazon uses a computer for 2 years. It turns out that the gross margin could reach 45 percent, which to date is higher than the book business of the company (which is still its main bread.)
Another unusual for the company's business was the product of a gadget - e-book Amazon Kindle, which allows you to recharge your library via the Internet. Books, of course, can be purchased directly on Amazon. In the end, fans of reading in an electronic form with each passing year it becomes more and more.
The success of the Kindle is amazing also because that Amazon does not give absolutely no paid advertising device. The company is trying to form around the product community, attract customers and other people's reviews, statements founder Jeffrey Bezos. Thus far the number of posted reviews Kindle ranked first in the "Audio" on its Web site. "Feedback from customers about Kindle were terrific - and they help sell the product," - said Ian Freed, director of Amazon, responsible for the Kindle. More than three quarters of the reviews are 4 or 5 stars in the evaluation unit. Some users called Kindle incredible, and someone says that this device is simply changed their lives. It helps sell the product. There is no doubt.
The device turned out really great. At the very least, the public perceived it with enthusiasm. Probably, we should put in a few words about the digital music store Amazon, which for some time is the main competitor to Apple iTunes. It is difficult to say anything concrete. So far better to be limited by the fact that this is the first project that could really compete with Apple.
So, today, Amazon is one of the giants of the IT industry. This multi-faceted company, represented in different industries. Perhaps in the future will be visible only to gain diversification Amazon. While this gives the company easy.
