Unit 1 – Assignment 3 – Amazon, Ebay Netflix
E-bay
E-bay is an e-commerce business that began in 1994, it began with a young entrepreneur that
adapted the business to fit with the new and upcoming trend, the internet. Pierre Omidyar
began his business with his computer at home programming every day until the site became
active. It was a sight made for consumers to sell to consumers. The first sale was from the
entrepreneur himself; it was Pierre’s own broken laser pointer. This stemmed from becoming
the success it is today where it opens its servers to all to sell their unwanted goods to others
and for businesses to sell their goods to consumers too. It is a new market that opened those
deals with visible trade, and this was their most innovative addition, adapting to the changing
environment that is still the number one platform for trade to this day.
The thinking behind the enterprise E-bay was dedicated to bringing together buyers and sellers in
an honest and open marketplace. This vision has remained constant to this day, it is still an open
and honest marketplace to this day where consumers can sell to one another and make easy
money off it. The vision has remained constant throughout the decades, and this has helped
develop E-bay into the international, multi-millionaire company it is today.
Netflix
Netflix is an entertainment service that shows a variety of selected films and tv shows,
including some of the best ones. Furthermore, it has more recently begun developing its own
movies and tv shows referred to as Netflix Originals. It began on the 29th of August 1997,
made by two men called Reed Hastings and Marc Randolph. Netflix uses the invention of the
internet to let families come together and watch a film or tv series they have been dying to
see; what is better is that it can be done in the comfort in the home. It has become a massive
success today being one of the most popular used streaming devices to be used domestically
and beats most things as it comes at a low cost of £5.99 to £13.99 for a month depending on
the package deal. For that month, customers can use Netflix at any time to watch any film or
tv series available to them; a lot cheaper than going buying individual films and going to the
cinema. Moreover, it can be streamed across multiple platforms, from Xbox to Laptop to
even smartphones, a great and more inclusive method for all and allowing them to maximize
their customer range. Netflix’s market message, that they use as an aim and a guide is
“Becoming the best global entertainment distribution service. Licensing entertainment
content around the world. Creating markets that are accessible to filmmakers” and aims to
become the number one film provider in the industry of film-proving and making.
In this assignment, we have been asked to explore how innovation has contributed to the
success of one of these 3 businesses. We have chosen to write our report on Amazon.
Business innovation is an organization’s process for introducing new ideas and work methods
to improve and excel a business. Business innovation should improve existing products,
services or processes; or it should solve a problem; or it should attract new customers.
An enterprise in business is a term used to describe a project or business venture undertaken
for the purpose of gaining something, whether that is money or reputation or many other
things.
Amazon
, Amazon was first founded July 5th, 1994, in Bellevue, Washington, United States by the
current richest man in the world Jeff Bezos. Bezos created Amazon with the original purpose
of selling books online, and soon became an iconic example of electronic commerce. Since
then, Amazon has developed and grown immensely and has gone on to sell thousands of
different products such as toys, music, electronics, and video games. Amazon currently has
over 300 million active customers all over the globe in countries such as England, Germany,
Japan and many more.
Amazon found quick success from using their e-commerce platforms and grew at a rapid rate.
Only two years after launching the business, their revenue increased year on year. In 1996
their revenue income was $15.7 million and jumped to $148 million in 1997 and then $610
million in 1998. Amazon are a very innovative company and Jeff Bezos figured out that if he
let other companies use amazon as a platform to sell their products and take commission on
each product sold, he could make serious money, so that is exactly what he did, benefiting
both amazon and the other companies and websites who were using this platform.
Amazon’s Innovation
Amazon, as I briefly explained in the introduction, is a very innovative and entrepreneurial
company. When Amazon first started up there was lots of competition in the book-selling
market, and Jeff Bezos produced a ground-breaking idea that would eliminate his competition
in a competitive market. Amazon started out by selling their books so cheap that they made a
loss on every sale. This meant that book buyers around the US at the time would only buy
books from amazon. This was the sole reason for why Amazon decided to sell their products
at price lower than the unit cost of the product. This resulted in Amazon’s competitors not
getting any sales and therefore no revenue, leading to them going out of business, and
Amazon becoming the market leader in the book-selling industry. However, this did lead to
Amazon not making any profit for the first two years of its running. The advantage of this
innovation is that Amazon eliminated most of their competition which led to them gaining a
huge market share and resulted in them becoming market leaders in the book-selling industry.
On the other hand, the disadvantage of this was that Amazon could not really develop the
business on the scale that they wanted to for the first two years as the funding that Jeff Bezos
had received from his angel investors and his parent’s life savings was being used to keep
Amazon above water. Having a majority Market share, now allowed Amazon to control the
price of the market which was a huge advantage for them as they could now raise the price of
their books and start to make a profit, which led to them being able to open the market and
sell other products through their website, which resulted in a huge surge in revenue income
for Amazon.
After the struggle of the first two years, and with their competition removed due to their
innovative pricing strategy, Amazon capitalized on this and started to invite other businesses
to sell different products through their website. They did this, because they realized that their
website was unique at the time and many other companies did not have the customer base or
proper models in place to set up an operation as large as Amazon’s was, so they decided to
sell products through Amazon. This then allowed Amazon to become more accessible to their
customers as they started offering a wide range of products across all aspects of the markets
and everything can now be purchased in one place (the Amazon website). As well as this,
Amazon’s revenue and profit margins shot up due to them taking commission from these
businesses who are selling via their website. This led to Amazon receiving passive income
without having to create or manufacture new or current products and resulted in them being
able to focus on developing their own ideas such as Amazon Prime, and Prime Video.
E-bay
E-bay is an e-commerce business that began in 1994, it began with a young entrepreneur that
adapted the business to fit with the new and upcoming trend, the internet. Pierre Omidyar
began his business with his computer at home programming every day until the site became
active. It was a sight made for consumers to sell to consumers. The first sale was from the
entrepreneur himself; it was Pierre’s own broken laser pointer. This stemmed from becoming
the success it is today where it opens its servers to all to sell their unwanted goods to others
and for businesses to sell their goods to consumers too. It is a new market that opened those
deals with visible trade, and this was their most innovative addition, adapting to the changing
environment that is still the number one platform for trade to this day.
The thinking behind the enterprise E-bay was dedicated to bringing together buyers and sellers in
an honest and open marketplace. This vision has remained constant to this day, it is still an open
and honest marketplace to this day where consumers can sell to one another and make easy
money off it. The vision has remained constant throughout the decades, and this has helped
develop E-bay into the international, multi-millionaire company it is today.
Netflix
Netflix is an entertainment service that shows a variety of selected films and tv shows,
including some of the best ones. Furthermore, it has more recently begun developing its own
movies and tv shows referred to as Netflix Originals. It began on the 29th of August 1997,
made by two men called Reed Hastings and Marc Randolph. Netflix uses the invention of the
internet to let families come together and watch a film or tv series they have been dying to
see; what is better is that it can be done in the comfort in the home. It has become a massive
success today being one of the most popular used streaming devices to be used domestically
and beats most things as it comes at a low cost of £5.99 to £13.99 for a month depending on
the package deal. For that month, customers can use Netflix at any time to watch any film or
tv series available to them; a lot cheaper than going buying individual films and going to the
cinema. Moreover, it can be streamed across multiple platforms, from Xbox to Laptop to
even smartphones, a great and more inclusive method for all and allowing them to maximize
their customer range. Netflix’s market message, that they use as an aim and a guide is
“Becoming the best global entertainment distribution service. Licensing entertainment
content around the world. Creating markets that are accessible to filmmakers” and aims to
become the number one film provider in the industry of film-proving and making.
In this assignment, we have been asked to explore how innovation has contributed to the
success of one of these 3 businesses. We have chosen to write our report on Amazon.
Business innovation is an organization’s process for introducing new ideas and work methods
to improve and excel a business. Business innovation should improve existing products,
services or processes; or it should solve a problem; or it should attract new customers.
An enterprise in business is a term used to describe a project or business venture undertaken
for the purpose of gaining something, whether that is money or reputation or many other
things.
Amazon
, Amazon was first founded July 5th, 1994, in Bellevue, Washington, United States by the
current richest man in the world Jeff Bezos. Bezos created Amazon with the original purpose
of selling books online, and soon became an iconic example of electronic commerce. Since
then, Amazon has developed and grown immensely and has gone on to sell thousands of
different products such as toys, music, electronics, and video games. Amazon currently has
over 300 million active customers all over the globe in countries such as England, Germany,
Japan and many more.
Amazon found quick success from using their e-commerce platforms and grew at a rapid rate.
Only two years after launching the business, their revenue increased year on year. In 1996
their revenue income was $15.7 million and jumped to $148 million in 1997 and then $610
million in 1998. Amazon are a very innovative company and Jeff Bezos figured out that if he
let other companies use amazon as a platform to sell their products and take commission on
each product sold, he could make serious money, so that is exactly what he did, benefiting
both amazon and the other companies and websites who were using this platform.
Amazon’s Innovation
Amazon, as I briefly explained in the introduction, is a very innovative and entrepreneurial
company. When Amazon first started up there was lots of competition in the book-selling
market, and Jeff Bezos produced a ground-breaking idea that would eliminate his competition
in a competitive market. Amazon started out by selling their books so cheap that they made a
loss on every sale. This meant that book buyers around the US at the time would only buy
books from amazon. This was the sole reason for why Amazon decided to sell their products
at price lower than the unit cost of the product. This resulted in Amazon’s competitors not
getting any sales and therefore no revenue, leading to them going out of business, and
Amazon becoming the market leader in the book-selling industry. However, this did lead to
Amazon not making any profit for the first two years of its running. The advantage of this
innovation is that Amazon eliminated most of their competition which led to them gaining a
huge market share and resulted in them becoming market leaders in the book-selling industry.
On the other hand, the disadvantage of this was that Amazon could not really develop the
business on the scale that they wanted to for the first two years as the funding that Jeff Bezos
had received from his angel investors and his parent’s life savings was being used to keep
Amazon above water. Having a majority Market share, now allowed Amazon to control the
price of the market which was a huge advantage for them as they could now raise the price of
their books and start to make a profit, which led to them being able to open the market and
sell other products through their website, which resulted in a huge surge in revenue income
for Amazon.
After the struggle of the first two years, and with their competition removed due to their
innovative pricing strategy, Amazon capitalized on this and started to invite other businesses
to sell different products through their website. They did this, because they realized that their
website was unique at the time and many other companies did not have the customer base or
proper models in place to set up an operation as large as Amazon’s was, so they decided to
sell products through Amazon. This then allowed Amazon to become more accessible to their
customers as they started offering a wide range of products across all aspects of the markets
and everything can now be purchased in one place (the Amazon website). As well as this,
Amazon’s revenue and profit margins shot up due to them taking commission from these
businesses who are selling via their website. This led to Amazon receiving passive income
without having to create or manufacture new or current products and resulted in them being
able to focus on developing their own ideas such as Amazon Prime, and Prime Video.
