THUONG MAI UNIVERSITY

FACULTY OF MARKETING
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GROUP DISCUSSION
ENGLISH FOR SPECIFIC PURPOSES 1 (ESP 1)

Topic 1:
Company's history, structure and operation

Teacher : Đỗ Diệp Linh

Group : 8
Class : 231ENTI101113

Hà Nội, October 2023

 GROUP 8
Name Comments
No. Tasks Mark
(for students) (for teacher only)
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Hà Nội, October 2023

Leader/ stand for group 8
(Signature and name)

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Company's history, structure and operation

Table of contents
We have a general overview of a company's history, structure, and operation. Here is the
template of the topic, finding in each of these categories:

1. Company History:

 Founding date and location: When and where was the company established?
 Founder(s): Who founded the company, and what was their background?
 Early years: What were the company's initial products or services?
 Milestones: Key events and achievements in the company's history.
 Growth and expansion: How did the company grow over the years?

2. Company Structure:

 Organizational hierarchy: Describe the company's organizational structure,

including departments, divisions, and reporting lines.
 Leadership team: Who are the key executives and leaders within the company?
 Board of Directors: Provide information about the board of directors if applicable.
 Locations: Where are the company's main offices, branches, or manufacturing
facilities located?

3. Company Operation:

 Core products or services: What does the company produce or offer to its
customers?
 Target market: Who are the company's primary customers or clients?
 Competitive advantage: What sets the company apart from its competitors?
 Supply chain: How does the company manage its supply chain and sourcing of
materials?
 Financial performance: Mention key financial metrics such as revenue,
profitability, and growth.
 Sustainability and CSR (Corporate Social Responsibility) initiatives: Highlight
any environmental or social responsibility efforts.

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GROUP 8............................................................................................................................1
TABLE OF CONTENTS...................................................................................................2
INTRODUCTION.............................................................................................................4
1. COMPANY HISTORY..................................................................................................4
Founding date and location and Founder(s)....................................................................4
Early Years and Milestones................................................................................................4
Growth and Expansion.......................................................................................................5
2. COMPANY STRUCTURE...........................................................................................5
Organizational hierarchy...................................................................................................5
Leadership Team.................................................................................................................6
Board of Directors..............................................................................................................7
Locations and Global Reach..............................................................................................7
3. COMPANY OPERATIONS..........................................................................................8
Core Products and Services................................................................................................8
Target Market.....................................................................................................................8
Competitive Advantage.......................................................................................................9
Supply Chain....................................................................................................................10
Financial Performance....................................................................................................10
Sustainability and CSR Initiatives...................................................................................11
CONCLUSION................................................................................................................12

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 Introduction

Amazon.com, Inc., often referred to simply as Amazon, is a multinational technology and

e-commerce company headquartered in Seattle, Washington. Founded by Jeff Bezos in
1994, Amazon has grown from an online bookstore into one of the world's largest and
most influential companies. This comprehensive overview will delve into the rich history,
intricate corporate structure, and multifaceted operations of Amazon.

1. Company History

Founding date and location and Founder(s)

Amazon's journey began in a garage in Bellevue, Washington, where Jeff Bezos decided
to explore the potential of e-commerce. On July 5, 1994, he officially founded
Amazon.com. Bezos, a former Wall Street executive with a vision for the digital future,
started Amazon as an online bookstore, driven by his belief in the internet's capacity to
revolutionize shopping. The name "Amazon" was chosen partly because it started with
the letter 'A,' which would place it at the top of alphabetical listings, and also because it
evoked the vastness and diversity of the Amazon River, aligning with Bezos's vision of
offering a wide variety of products.

Early Years and Milestones

In its early years, Amazon primarily focused on selling books, using a business model
that allowed customers to browse and purchase books online. In 1995, Amazon.com went
live to the public, marking the beginning of online retail as we know it today. However, it
didn't take long for Amazon to expand its offerings beyond books. By 1998, the company
had diversified its product catalog to include music and movies.

Several significant milestones marked Amazon's rapid growth. One of the most
noteworthy was the launch of Amazon Prime in 2005. Amazon Prime, a subscription
service, initially offered free two-day shipping on eligible items. Over the years, it
expanded to include additional benefits like streaming of movies, TV shows, and music,
as well as exclusive access to special sales events like Prime Day. Amazon Prime has
played a pivotal role in customer retention and loyalty.

Another transformative moment in Amazon's history was the introduction of the Kindle
e-reader in 2007. This device revolutionized the way people read books by allowing them
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to download and read digital books. The Kindle ecosystem expanded to include devices
like the Kindle Fire tablet, further solidifying Amazon's presence in the digital content
market.

In 2006, Amazon Web Services (AWS) was launched. AWS is a cloud computing
platform that provides a wide range of services, including computing power, storage, and
databases, to businesses and individuals. It has since become a major driver of Amazon's
profitability and has played a crucial role in the growth of the internet as a whole.

Amazon also ventured into the grocery market by acquiring Whole Foods Market in
2017. This acquisition allowed Amazon to combine its e-commerce prowess with the
traditional brick-and-mortar grocery business.

Growth and Expansion

Amazon's growth has been nothing short of remarkable. From its humble beginnings as
an online bookstore, the company has expanded into nearly every corner of retail and
technology. Its foray into diverse markets and industries has been fueled by innovation,
bold strategic decisions, and a relentless focus on customer satisfaction.

Amazon's expansion has not been limited to the United States. The company has
successfully entered and established a presence in numerous international markets. Its
global reach extends to Europe, Asia, and beyond, with localized websites and services
tailored to specific regions.

2. Company Structure

Organizational hierarchy

Amazon's corporate structure is complex and multifaceted, reflecting its diverse range of
businesses and ventures. The company is organized into several major segments or
business units, each with its own set of responsibilities and objectives. These segments
are overseen by executives who report to the top leadership.

The following are some of the key segments or divisions within Amazon:

1. Amazon.com: This is the core e-commerce division where customers can

purchase a vast array of products, both physical and digital, from books and
electronics to clothing and home goods.
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 2. Amazon Web Services (AWS): AWS is the cloud computing arm of Amazon and
provides a broad portfolio of cloud services, including computing power, storage,
databases, machine learning, and more, to individuals and businesses worldwide.
3. Amazon Prime: Amazon Prime is the subscription service that offers various
benefits, including fast shipping, access to streaming content, exclusive deals, and
more.
4. Amazon Devices: This division is responsible for creating and selling Amazon's
hardware products, including Kindle e-readers, Echo smart speakers, Fire tablets,
and Ring home security devices.
5. Amazon Fresh and Whole Foods Market: These divisions focus on grocery
retail, including online grocery delivery and brick-and-mortar stores.
6. Amazon Studios and Amazon Prime Video: Amazon produces and streams
original movies, TV shows, and other content through its entertainment divisions.
7. Amazon Advertising: This segment offers advertising services to businesses
looking to promote their products on Amazon's platforms.
8. Other Businesses: Amazon has invested in or acquired various other companies
and initiatives, such as Audible, Zappos, IMDb, and PillPack, each of which
contributes to Amazon's diversified portfolio.

Leadership Team

The leadership team at Amazon is instrumental in shaping the company's strategy and
overseeing its day-to-day operations. As of my last knowledge update in recent times,
some of the key members of Amazon's leadership team include:

 Jeff Bezos: Founder and former CEO (Note: Jeff Bezos stepped down as CEO in
2021 and was succeeded by Andy Jassy).
 Andy Jassy: CEO, succeeding Jeff Bezos. He played a key role in the growth of
AWS.
 Brian T. Olsavsky: Chief Financial Officer (CFO), responsible for Amazon's
financial operations.
 Werner Vogels: Chief Technology Officer (CTO), responsible for technology and
innovation.
 Dave Clark: CEO, Worldwide Consumer, overseeing Amazon's global consumer
business.
 Amit Agarwal: Global Senior Vice President and Country Head for Amazon
India, responsible for Amazon's operations in India.

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  Jay Carney: Senior Vice President, Global Corporate Affairs, handling Amazon's
public relations and communications.
 Shelley Reynolds: Vice President, Worldwide Controller and Principal
Accounting Officer, responsible for financial reporting and accounting.
 Teresa Carlson: Vice President, Worldwide Public Sector, leading AWS's efforts
in serving government and non-profit customers.

It's important to note that executive leadership can change over time, and new executives
may have joined Amazon since my last knowledge update.

Board of Directors

Amazon's Board of Directors plays a crucial role in guiding the company's strategic
direction and governance. The board comprises accomplished individuals from diverse
backgrounds. As of my last knowledge update, notable members of Amazon's Board of
Directors included:

 Jeff Bezos: Founder and former CEO.

 Andy Jassy: CEO, Amazon.com, Inc.
 Tom Alberg: Managing Director, Madrona Venture Group.
 Rosalind Brewer: Group President and Chief Operating Officer, Starbucks
Corporation.
 Jamie Gorelick: Partner, Wilmer Cutler Pickering Hale and Dorr LLP.
 Daniel P. Huttenlocher: Dean Emeritus and Professor, Cornell Tech.
 Judy McGrath: Founder and President, Astronauts Wanted.
 Indra Nooyi: Former Chairman and CEO, PepsiCo.
 Jon Rubinstein: Former Senior Vice President, Hardware Engineering, Google.

The composition of the board may change over time due to appointments, retirements, or
other factors.

Locations and Global Reach

Amazon's global reach is extensive, with operations in numerous countries and regions
around the world. The company has a significant presence not only in the United States
but also in Europe, Asia, the Middle East, and other regions. Amazon operates a vast
network of fulfillment centers, data centers, and customer service hubs to support its e-
commerce and AWS businesses.

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In addition to its digital presence, Amazon has expanded its physical footprint with brick-
and-mortar retail stores, including Amazon Go, Amazon Books, and its ownership of
Whole Foods Market.

3. Company Operations

Core Products and Services

1. E-commerce: Amazon's core business is its e-commerce platform, where

customers can shop for a wide range of products, including electronics, clothing,
home goods, books, and more. Customers can make purchases through the
Amazon website or mobile app.
2. Amazon Web Services (AWS): AWS is a cloud computing platform that offers a
broad set of on-demand computing resources and services. These services include
computing power, storage, databases, machine learning, analytics, and more. AWS
is widely used by businesses to build and deploy applications and websites.
3. Amazon Prime: Amazon Prime is a subscription service that provides members
with various benefits. These benefits include fast and often free shipping on
eligible items, access to a vast library of streaming movies, TV shows, and music,
exclusive deals on Amazon, and more.
4. Amazon Devices: Amazon develops and sells a range of hardware devices,
including the Kindle e-reader, Echo smart speakers, Fire tablets, Ring security
cameras, and more. These devices often integrate with Amazon's digital services
and ecosystem.
5. Grocery Retail: Amazon offers grocery shopping services through Amazon Fresh
and Whole Foods Market. Customers can order groceries online for delivery or
pickup, and Whole Foods Market stores provide a physical presence for grocery
shopping.
6. Amazon Studios and Prime Video: Amazon produces and streams original
movies, TV shows, and other video content through its Prime Video platform.
This content is available to Prime members.
7. Amazon Advertising: Amazon provides advertising solutions to businesses
looking to promote their products and reach a vast audience of online shoppers.
Advertisers can use Amazon's advertising platform to display their products to
relevant customers.

Target Market

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Amazon's target market is diverse and spans across different demographic groups,
including:

 Consumers: Amazon serves individual consumers who shop for a wide range of
products, from everyday essentials to luxury items.
 Businesses: Through AWS, Amazon caters to businesses of all sizes, offering
cloud computing and storage solutions.
 Prime Members: Amazon Prime is designed to appeal to customers seeking
added convenience, savings, and entertainment.
 Grocery Shoppers: With its grocery retail offerings, Amazon targets consumers
looking for fresh and convenient grocery options.
 Content Consumers: Amazon Prime Video attracts viewers interested in
streaming movies and TV shows.
 Advertisers: Amazon's advertising services are used by businesses aiming to
promote their products to Amazon's extensive customer base.

Competitive Advantage

Amazon's success and competitive advantage can be attributed to several key factors:

1. Vast Product Selection: Amazon's extensive product catalog is one of its most
significant strengths. Customers can find a wide variety of items on the platform,
from everyday essentials to niche products.
2. Efficient Logistics and Delivery Network: Amazon has invested heavily in
building a robust logistics and delivery infrastructure. This includes a network of
fulfillment centers, delivery vans, and even drones in some regions, enabling fast
and reliable shipping.
3. Amazon Prime: The introduction of Amazon Prime has been a game-changer. It
not only encourages customer loyalty but also fosters repeat purchases and
increased engagement through its various benefits.
4. Amazon Web Services (AWS): AWS dominates the cloud computing market,
serving a vast number of businesses and organizations globally. Its scalability,
reliability, and comprehensive service offerings have made it a preferred choice
for cloud solutions.
5. Customer-Centric Approach: Amazon's customer-centric philosophy places a
strong emphasis on providing an exceptional shopping experience, which includes
features like customer reviews, personalized recommendations, and easy returns.

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 6. Innovation and Investment: Amazon continually invests in technology and
innovation. Initiatives like Alexa, Amazon Go stores, and drone delivery represent
Amazon's commitment to pushing the boundaries of what's possible in retail and
technology.
7. Data and Analytics: Amazon leverages vast amounts of data to understand
customer preferences and behavior, which helps in optimizing product
recommendations and marketing strategies.

Supply Chain

Amazon's supply chain is a critical component of its operations, enabling the company to
fulfill orders efficiently and meet customer expectations for fast delivery. The supply
chain includes several key elements:

1. Fulfillment Centers: Amazon operates a vast network of fulfillment centers

strategically located near major population centers. These centers store and
process inventory, allowing for quick order picking and packing.
2. Delivery Network: Amazon utilizes a combination of delivery methods, including
its own fleet of delivery vehicles, partnerships with delivery service providers, and
innovations like Amazon Flex and Amazon Logistics.
3. Warehousing and Inventory Management: Advanced software and robotics
help manage inventory levels, track stock movement, and optimize warehouse
operations.
4. Last-Mile Delivery: Amazon is constantly exploring new ways to improve last-
mile delivery, including the use of drones and autonomous delivery vehicles.
5. Global Supply Chain: Amazon's global supply chain ensures that products are
sourced from suppliers worldwide and delivered to customers in various countries.

Financial Performance

Amazon's financial performance has been impressive, characterized by consistent

revenue growth and, in many years, substantial profitability. As of my last knowledge
update in September 2021, here are some key financial highlights:

 Revenue: Amazon consistently ranks among the top companies globally in terms
of revenue. Its revenue has experienced steady growth over the years, driven by its
core e-commerce business, AWS, and other segments.

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  Profitability: While Amazon operated with narrow or negative profit margins for
much of its early history, the company's profitability improved significantly over
time. AWS has been a major contributor to Amazon's profitability.
 Market Capitalization: Amazon is often ranked as one of the world's most
valuable publicly traded companies, with a market capitalization that reflects
investor confidence in its growth prospects and market dominance.
 Investment and Capital Expenditure: Amazon has consistently invested in
expanding its operations, building infrastructure, and developing new
technologies. These investments have contributed to its long-term growth.
 Cash Reserves: The company has maintained substantial cash reserves, which
provide it with financial flexibility and the ability to invest in various strategic
initiatives.

It's important to note that financial performance can vary from year to year and may have
evolved since my last update in 2021. Investors and stakeholders interested in Amazon's
current financial status should refer to the company's latest financial reports and
disclosures.

Sustainability and CSR Initiatives

Amazon has increasingly focused on sustainability and corporate social responsibility

(CSR) initiatives in response to environmental and societal concerns. Some of the key
areas of Amazon's sustainability efforts include:

1. The Climate Pledge: In September 2019, Amazon co-founded the Climate

Pledge, a commitment to reach the goals of the Paris Agreement 10 years early.
The pledge includes becoming net-zero carbon by 2040 and using 100%
renewable energy by 2030.
2. Amazon's Sustainability Initiatives: The company has launched multiple
initiatives to reduce its environmental impact. These include Shipment Zero,
which aims to make all Amazon shipments net-zero carbon, and investments in
electric delivery vehicles.
3. Renewable Energy: Amazon has announced numerous renewable energy projects
and investments in wind and solar energy to power its operations sustainably.
4. AmazonSmile: This program allows customers to support their favorite charitable
organizations by shopping on AmazonSmile. A portion of eligible purchases goes
to the chosen charity.

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 5. Community Engagement: Amazon has engaged in community projects,
including donating to food banks, supporting STEM education, and providing
disaster relief assistance.
6. Diversity and Inclusion: Amazon has pledged to foster diversity and inclusion
within its workforce and promote equality. It has set targets to increase the
representation of underrepresented groups in its leadership roles.

Conclusion

Amazon's journey from an online bookstore to a global e-commerce and technology giant
is a testament to its founder's vision, relentless innovation, and customer-centric
approach. The company's history is marked by significant milestones, including the
introduction of Amazon Prime, Kindle e-readers, AWS, and the acquisition of Whole
Foods Market. Amazon's complex corporate structure reflects its diverse range of
businesses, from e-commerce and cloud computing to entertainment and grocery retail.

The leadership team, board of directors, and global presence all contribute to Amazon's
status as a leader in the tech and retail industries. The company's competitive advantage
lies in its vast product selection, efficient logistics, customer-centricity, and innovative
mindset.

As Amazon continues to evolve and expand its operations, it faces challenges related to
sustainability, competition, and regulatory scrutiny. However, its commitment to
sustainability initiatives and corporate responsibility demonstrates its recognition of the
need for responsible growth.

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