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Introduction Amazon is one of the most successful online businesses in the world whereby it includes online auction and online store. Amazon creates a platform for sellers around the world to sell their products on its website. Besides that, one of the features provided by Amazon is the price comparison feature. This enables the buyers to compare product prices before making a purchase. There are plenty of the online stores and online auctions in the world which can compete with Amazon, such as eBay and Yahoo. There are a few reasons leading us to choose Amazon as a part of our research. One of the reasons is to develop deep understanding on how Amazon.com able to become a notable company in the world. Next, the aim of choosing this organization is to discover the story behind the success of Amazon and how the company‟s reputation being build up in this fast-paced era. Furthermore, the objective of doing research on Amazon is to study the 12 key concepts practiced by the company. In this 12 key concepts, we will go through the vision and mission statements, objectives and goals, strategies of this organization, what kind of identity build by the company, what is the image of the company in the eyes of the society, how does the reputation of this company remain so strong for a long period, who are the public involved in the company‟s issues, what are the issues faced, who are the market of this company, who are the stakeholders affecting and affected by the company achievement, what are the tactics and media used by the organization to communicate externally and internally.
7 million in sales. The internet was not so popular back then in year 1995.1 History The notable company. he realized that the online book store could sell more than that. He chose “Amazon” to be his company name because he considered the Amazon river is the largest in the world and he hope his company will become one too. How the name of the company came from? He wanted his company name start with “A”. Organization’s profile 2. Furthermore. Before the company existed. software. The official webpage was launched in July 1995. In year 1999. Then. Most of the largest bookstore and mail order catalogs offer 200 000 titles. Amazon expanded their business by adding other categories of products such as electronics. Amazon was spreading itself too thinly and venturing in too many products. 70% of Amazon‟s share price had dropped. video games. Jeff Bezos. Jeff Bezos was an investment banker who lived in New York City. home improvements. Amazon lost $323 million for the fourth quarter. music CDs and videos in year 1998. Amazon was created by the CEO.2. toys. Amazon retrenched 150 workers in order to reorganize the company structure and plan in year 2000. Jeff Bezos was named as the "Person of the Year" by Time magazine due to the remarkable success of Amazon. Amazon generated $15. Amazon managed to survive despite the dot-com burst. Hence. Then. So he began his journey to sell books online. many online businesses went out of business because of dot-com burst occurred at the end of 1999. However. In 1997. In summer 2000. In 1996. based on the . Fortunately. Amazon worth £54 million in an initial public offering as it launched itself on the stock market.
Amazon‟s profit had increased and earned $5 million. the worst ever for Amazon. Now. investors avoid buying Amazon stocks.1 Vision The ideal picture of the organization‟s future is the vision statement. Amazon had stopped selling some of the products because it weren‟t profitable. According to Hanauer. Vision statement is essential for the customers and employees to understand a corporation.d. Amazon is a multibillion dollar business whereby the company has approximately 49 million of active customers in the world. At the end of 2001. now Amazon is the best seller in the world. After a decade of struggles. n. to build a place where people can come to find and discover anything they might want to buy online”. Amazon was reported in early year 2001 for suffering a total loss of $1. (Amazon: E-Commerce Success Story. (Amazon. This statement can be defined as a short sentence written by the company which reflects its core purpose. identity. When this rumor started to spread. two warehouses and a Seattle customer service centre were closed. Jeff Bezos which is his long-time friend is the smartest man in the world.4 billion. 1500 workers were stopped from working with Amazon.com . 2009) 3. 12 Key Concepts 3. During the improvement period. The vision of Amazon is “to be earth‟s most customer centric company. values and principle in business. it is said that Amazon will face bankruptcy.Wall Street prediction. Amazon generate almost 7 billion dollars of annual sales.) .
Amazon had yet created their mission statement. or the like. we would like to suggest a mission statement for the company. Next. Furthermore. deliver the best online purchasing experience to our valued customers and continue to strive towards success”. work hard to spend wisely and maintain the lean culture.3 Objectives The main objective of Amazon is to satisfy the community's purpose by allowing people to accomplish something they want or need to do whether it‟s buying something. the meaning of “continue to strive towards success” is that Amazon will continue to stay at the top as the best online retailer in the world. which are to focus relentlessly on the customers. selling something. 2006). making bold investment decisions in light of long term leadership considerations rather than short term profitability considerations. The design and implementation of amazon.com depends on the intended outcomes the site serves. (Bloomberg Businessweek. Not only that.3.com are to focus on cash. The mission statement we would like to suggest is “provide excellent customer service.2 Mission According to our research. 3. the objectives of amazon. Therefore. the definition of “deliver the best online purchasing experience to our valued customers” is to provide pleasurable shopping experiences to fulfill consumers‟ satisfaction. The meaning of “provide excellent customer service” is to treat every single customer as their most valued customers in order to get more regular customers. and focus on . fixing something.
there are other marketing strategies used by Amazon too. exploitation of its affiliate‟s product and resources. n. products and services.com Strategy. Internet is the easiest way to get the products into the hand of the customers at the most cost effective.hiring and retaining flexible and talented employees as well as weight their compensation to substantial stock ownership rather than cash. Amazon also partnered with content producers in innovative ways and created an open back-end that allow independent publishers to generate new content. every decision they make on their products and services are based on the way in which they access to their customers. CDs. such as freely proffers product and services. Amazon has greatly expanded the market for e-books and positioned itself for success not only in this market but in newspaper and periodical distribution as well.). clothing and electronic appliances which can be accessed to customers via the internet (Marketing Strategies of Amazon.4 Strategies The use of internet is always the main strategic focus of Amazon until today. uses of customer friendly interface in the webpage. 3. DVDs. Amazon.d. low effort.). As a result.com has never cared what their customers‟ income is and where they stay. and quick manner(The Basics of Business – Amazon. uses of existing communication . n. Other than that.com. It is another strategy used by Amazon to improve their business.com is to focus on their target customers. Besides that. It does not matter to them as long as the customers buy their products in the internet.d. The secondary strategy of amazon. The products and services offered are specialized on easy to ship items such as books.
building supply. Amazon currently has approximately 40 million of customer base. and more. The main building of the organization is located in Seattle. the orange arrow looks like a smile and it starts from the letter “A” in Amazon then it ends at the letter “Z”.com has everything from A to Z and it also represents the smile brought to the customer‟s face. . computers. it has a hidden meaning in it. hardware.S.system. As we look into the logo of the company. If we observe the logo of the company. and utilization of universal behaviors and mentalities. movies. pet needs. consumer electronics. Since Amazon is one of the most successful online retailers in the electronic commerce industry. the largest river in the world. toys. This famous logo is extremely clean and simple but this arrow might not look like more than a smile to you. health and beauty aids.com building or alternative name for it is the U.5 Identity An identity of a company is designed to represent the organization which differ the company with others and it is mostly manifested by the use od trademarks and way of branding. jewelry. 3. It says that amazon. clothing. automotive. the identity of its company is well known. groceries. Amazon competes in a wide range of markets including books. marine hospital. USA which is called as the Amazon. The name of the company is obvious and notable as it is named after the Amazon river.
Amazon had achieved the ISO 27001 security certification which is known as the International Organization for Standardization (ISO) and it is used to secure customers‟ data. In recent years. In addition. they have even demanded print on demand (POD) publishers to use Amazon‟s service. there are still a portion of people who are against it. Jeff Bezos and his team members are very serious about treating their computing services like a real business in order to provide a good image to the consumers. Amazon. Since Amazon has their own publishing house.3. Amazon expanded their business in self-publishing reading materials. which causes most of the POD publishers succumbed to the pressure. It suggests a mental picture to the public. it is technology savvy and it is a trusted company. (Bylund. they will market their own books at the expense of other worthwhile titles.com was chosen as the most reputable big company by the consumers. Even though Amazon is said to have good image by most people. The certificate is created to ameliorate concern among the consumers by showing that the companies have lasting commitment to privacy and data security. The reason why certain people have bad perception towards Amazon is because Amazon is said to have used its strong status to increase control over book distribution and publishing.6 Image The image of a company is the perception that the public generally holds about a particular organization. . The reasons why the consumers chose Amazon are because the corporation provides a good value. 2010) What are people perceptions towards Amazon? In a survey conducted by a consulting firm called Reputation Institute in 2011.
there are some people who have negative thoughts towards Amazon. Besides that. they prefer to use other online retailer sites such as eBay. Packages arrive on doorsteps quickly.There are people who think that it is very bad when a company have too much control over the distribution of information and ideas. Instead. According to the survey we have done on 20 students. (DiNorcia. In addition to that. Besides that. 3. Amazon has earned excellent reputation for its strong service by satisfying customers‟ need without even talking to the employees. Amazon is able to . On the other hand.com. Orders can be made with a few mouse clicks. Thirteen of the students answered in the questionnaire that they will buy or sell at Amazon. many of the respondents found out about the company and its site through internet advertisement.7 Reputation The reputation of a company is the recognition given by the stakeholders based on its corporate performance and it is built over a long period. 2012) Therefor. We had conducted a survey to study perception the UMSKAL students towards Amazon. In a nutshell. 17 of them know that Amazon is a famous online retailer company and only 3 respondents are unsure about the company and never heard or visited its site before. Sales clerks are nonexistent. 7 respondents said that they will not sell or buy from Amazon. Furthermore.com because it is very convenient and it is a trusted company.com because they are not familiar with the site. we also include a question on their opinion in selling or buying from Amazon. we had also conducted a survey on our own. Amazon has a good image all this while not only among UMSKAL students but as well as the people around the globe.
(Salter. a valued customer of Amazon said “I‟ve accidentally ordered two same cameras. Then. That is what I call as good customer service. I send the camera back. Amazon‟s action had undermined the industry as a whole and had prevented millions of customers from having access to the content. it causes the reputation of the company went downhill when Barnes & Noble decided not to sell published books to Amazon. In addition with the Amazon self-publishing issue. The Kindle became Amazon's top-selling item compare with all other product categories. Barnes & Noble believe that Amazon has proven that they would not be a good publishing partner to Barnes & Noble as they will continue to pull content off the market . Barnes & Noble‟s decision is based on Amazon‟s continuous pushing for exclusivity with their own publishers. This exclusivity had prohibited them from offering certain e-books to their customers. For instance. another reason contributed to the lack of sales for the Kindle is the bad publicity in 2011 when Amazon created uproar by encouraging customers to use a price-checking application on Main Street and in the malls. Since I‟m a valued customer.” The reputation of Amazon continues to grow with its best seller. We can see that Amazon transform from originally being an online book store and online retailer into electronic book store which the top brands such as Apple have been selling worldwide. the Kindle which is an e-book. and then return to Amazon for a better deal. agents and the authors. Brian Phelps.handle problems encountered by their customers well. but they never receive it. Booksellers felt particularly offended by Amazon‟s action. 2010) Furthermore. they returned money back to me for the camera that they never got back.
Their salaries start from $10. stoop and squat.com axed its employees‟ overtime pay when its employees are working extra time. the report from the Times shows that employees of Amazon‟s warehouse in United Kingdom were being warned by the company that they are not allowed to take sick leave even if they have official medical certifications. the Times reported that Amazon workers will be penalized by the company for falling ill by making them work non-stop the whole week and threaten to sack them if they take leave.com just involve with a lawsuit which claims that Amazon. Some of the Amazon‟s action has made the company appear in headlines. A compulsory work of 10 hours overnight shift at the end of weekday and overnight shift from Saturday evening to Sunday 5 A.8 Public Amazon posted a job posting stating that people who are interested to work at Amazon are required to stand on their feet for 8 to 10 hours and walk a distance of 10 to 15 miles a day for those who are involve in ordering or picking selection while for workers that are responsible for shipping. 2012) 3. Employees that are taking a day off even with doctor‟s letter will cause them to face penalty of 6 points deduction. A former Amazon employee has sued Amazon when the organization had violated about 21 000 warehouse workers‟ right around United States regarding overtime payment and on December 2008. (Bosman. they must be capable of standing on their feet for 8 to 10 hours and they also have to repetitively lift.50 an hour for day shifts and $11 an hour for nights. According to Reuters. Next. are required by Amazon‟s . bend.M. Amazon.for their own self-interest.
they were being told to notify their employees when they need to go to toilet. 20 current and former Amazon warehouse workers were interviewed by The Morning Call over the past 2 months where proofs of employment such as pay stubs.9 Issue Toys “R” Us Inc.. they will continue to provide perfect online access for their customers but Amazon . They were also being ordered to walk 14 miles to collect packing items per shift while they were only be given 15 minutes break and another 20 minutes per eight-hour shift. He said that the condition of working become worse when heat in the warehouse increase to more than 100 degrees especially during summer. Elmer Goris. succeed in a cruel lawsuit against online giant Amazon. On the other hand. thus making way for Toys “R” Us Inc. tax forms and others were shown. They have exposed the condition of working in the Amazon warehouse. In addition.employees. 3. a 34-years-old Allentown resident that spent more than 10 years worked in warehouse said he resigned on July because he was frustrated with the high temperature and mandatory working overtime. Besides that.com when a New Jersey judge ordered both companies to break their partnership. to build a store that is no longer rely on any companies. the corporation set quota for its employees to pack a specific number of items in an hour and held a competition among the employees where any workers that are unable to fill the quota will be penalized. According to John Sulivan. where the rate of production are difficult achieve on high temperature during hot summer and lots of temporary workers that were hired by outside agency hard to get a permanent jobs. the senior vice president of Toys “R” Us Inc.
In 2004. . over its use of the phrase "App Store". an injunction was asked by Apple to the court to stop Amazon from using the name as well as unstated lost. In another issue.thinking for an appeal. Although the case does not include penalty of money but Amazon suffered a huge financial lost while Toys “R” Us Inc. Amazon. Amazon.‟s children products. accusing the online retailer for trademark rights violations.” In a complaint filed in federal court of the Northern District of California.com and Amazon.com had also filed a counterclaim. was sued by Apple Inc. was sold to a private investment consortium in 2005 for $6. Apple claims that Android app store launched by Amazon for downloading applications that work across Android mobile devices violated trademark rights on Amazon usage of the term “App Store. In its complaint.6 billion. the primary provider of the same products on Amazon. Patty Smith said that Amazon strongly oppose to the result of that case and considering multiple options.com and Toys “R” Us Inc. Apple stated that mobile software download customers are easily confused whether Apple passed or sponsored mobile software download service provided by Amazon. New Jersey Superior Court Judge Margaret Mary Mcveigh stated that Amazon had violated its agreement. Mcveigh also rejected Amazon‟s effort to self-defend by asking her to show e-mail evidence that may include rumors. In 2000.com Inc. signed a 10 years strategic partnership that made Amazon the exclusive online retail outlet for Toys “R” Us Inc. Amazon‟s spokesperson. a lawsuit was filed on whether the agreement also made Toys “R” Us Inc.
The e-commerce company soon expanded into other media including DVDs. Since Amazon has many shopping departments. and ultimately wide range of other products. It is the same name used by Apple to refer to its application for many Apple apps. The filing says that the word was used by Amazon on January 2011 to refer to its download services of mobile software but Amazon‟s cites it as “Appstore” without a space between “App” and “store” as well as using lower case „s‟. CDs. According to a spokesperson of Apple. 2010).App Store‟s term trademark was registered by Apple on 17/7/2008. MP3s. each department caters for different group of . The targeted market of Amazon are internet users who are seeking for the best online purchasing experience as well as willing to perform an online purchase on various products such as books. Initially. Apple have asked Amazon not to copy the name of App Store because customers will be confused and mislead by them while Amazon‟s spokesperson said that Amazon doesn‟t comment on pending judicial proceeding. 3. and other products.10 Market Market is a defined group for whom a product is or may be in demand and for whom an organization creates and maintains products and service offerings (Cornelissen. music CDs. videotapes and DVDs. Amazon established as an online book store whereby its targeted market was internet users who love books.
Having the right suppliers are crucial so that the company is able to provide genuine and high quality for the customers. the higher the revenue generated by the company.11 Stakeholder Stakeholders are the people who contributed to the company achievements and will be affected by company‟s success. suppliers are stakeholder which main role is to supply stocks or products to the company. Besides that. Furthermore. the company directors are one of the most important stakeholders in an organization. (Thompson. shoes and jewelry for all range of ages and gender. 2011). Besides that. one of the stakeholders is the company associates which mostly comprises of the company affiliates. For example. One of the stakeholders of Amazon is the consumers who purchase and sell on the web. In addition. one can make a big difference to its success and the future career. 3. Directors are the functioning body of the company since they are the one . Next. the targeted markets for unlimited instant videos are young adults who love to watch movies as well as parents who wanted to purchase kids and family movies. Amazon is an online retailer where they can provide products and services to everyone around the globe and not restricted to a certain region. By engaging the right people in the right way in a given project. These affiliates act as a marketing tool for Amazon where they get paid for every sale they brought to Amazon. Stakeholder management is critical to the success of every project in every organization. Amazon sells clothes.customers. The higher the number of customers uses Amazon‟s as their selling and buying platform.
independent expenditures. more than $1. On top of that. Amazon has constantly contributed to the society by making donations such as. Other than that. one of the stakeholders in Amazon is the employees. competitors are another stakeholder who creates a strong competition among the online retailer like Walmart and e-Bay. receiving orders. These shareholders will earn profits when the company generates revenue.8 million were contributed for the earthquake and tsunami relief in Japan as well as other contributions. Last but not least. With the presence of these competitors. Employees play an important role in execution of task such as the shipping process. or electioneering communications on behalf of a federal. 2010-2011). in 2004. . another stakeholder of Amazon id the society. As far as corporate communication is concerned these stakeholders play a big role in the society such as supporting transparency and accountability in corporate spending on political activities. state or local candidate (Political Disclosure. On the other hand. Amazon contributed $15. and other tasks. the company will find ways to improve their products and services in order to gain more customers. the honorable stakeholder is the government because having a good government policy will affect the company‟s achievement positively. These activities include direct and indirect political contributions to candidates. The shareholder which may be an individual or organization who legally own a part of a share of a stock in a company is another stakeholder of the company. political parties or political organizations.7 million for tsunami relief in South and Southeast Asia and in year 2011.who make decision on which may be beneficial or non-beneficial towards the company.
newsletters are provided for consumers and investors who are keen on getting themselves updated about Amazon.com.com too. as well as those who are interested in the company‟s stock. books related to Christmas will be offered with discount during the Christmas season. electronic gadgets and so much more.com. It is so important that it may cause an organization successful or bring down the company.12 Communication Communication is one of the most important elements in order to build a successful organization. Communication is the methods used to communicate internally or externally of an organization.3. the investor relations department is in charge of holding annual shareholders meeting to discuss about the annual finance report and other matters regarding the company finances. securities law and marketing compliance to enable effective two-way communication between the organization and their shareowners. there are investor relations department in Amazon. there will be special offers during festive seasons for related products too. Investor relations also are responsible in handling inquiries from the investors and shareholders.com offers promotional prices for selected items such as books. Providing promotion packages for customers is one of the effective ways to communicate with the customers since they are usually attracted by the lower prices of the products. These investor relations are responsible for finance. For instance. Consumers may subscribe for . Amazon. Other than that. Besides that. communication . Consumers can subscribe for e-mail alerts for new information posted by Amazon. Furthermore. Besides that.
It is conducted to ensure that the Amazon. Corporate design is the official graphical design of the company‟s logo and name used on envelopes. The code of business conduct and ethics are designed to protect the company‟s privacy and confidential information against irresponsible employees.com. and the consumers. the investors may subscribe to automatically receive financial information from amazon investor relations by e-mail. “Financial Reports”. “Press Releases”.“Image Library Update Alert”. letterheads and brochures. the corporate design of Amazon. The official corporate design of Amazon. “Media Kit Update Alert” and “News Alert”.com is another method to communicate with the consumers and clients.com. forms.com. the media. product information and needs with the clients.com has a special corporate design which represents its identity and it is used to communicate their mission. Next. objectives. The corporate design of Amazon. lawfully and in the best interests of Amazon.com employees always act ethically.com is a way to unify and standardize all communication between the organization and audience in print or online. the suppliers. “amazon-ir Debt Announcement” and other financial information from Amazon. code of business conduct and ethics are implemented to communicate with the employees. Amazon. On the other hand. Investors may subscribe for “Annual reports”.com is In Amazon. The 12 code of .
S through a press release. The Amazon.com provide forum for better communication with customers. the forum is used to announce changes in Amazon‟s features or guidelines as well. Next. “Price Fixing”.com to communicate with the audiences. press release is one of the tools used by Amazon. a kindle store with the largest selection of Spanish-Language bestsellers available anywhere in the U.com introduces eBooks kindle en Español. Amazon. Besides that. Rules and Regulations”. Furthermore. .com public relations are responsible for the press releases. Besides that. on the 4th May 2012. “Insider Trading Policy”.com announced that Amazon launches sports collectibles store offering sought-after memorabilia from athletes of the Past and Present in another press release. For instance. The Amazon Discussion Feedback Forum is used to communicate about the company‟s upcoming changes and direct answering customer inquiries. “ Discrimination and Harassment”. “Questions: Reporting Violations”. and Financial Integrity”. “Bribery: Payments to Government Personnel”.com announces the launch of new projects and other public announcements through press release. Amazon. “Recordkeeping.business conduct and ethics for Amazon. “Board of Directors” and “Waivers”. The forum is created to allow customers to give their feedback on what they like and dislike about Amazon‟s discussion boards. Amazon. “Periodic Certification”. Amazon.com employees are consist of “Compliance with Laws. on the 2nd February 2012. Reporting. “Health and Safety”. “Conflicts of Interest”.
4.0 Conclusion .
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