I. INTRODUCTION a. BACKGROUND: Globalization is a process of interaction and integration among the people, companies, and governments of different countries, a procedure compelled by international trade and investment, and supported by information technology. Furthermore, this process has an effect on various other systems such as on the environment, culture, political systems, economic development and prosperity and lastly, on human physical well-being in societies around the world. “Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion” (York, 2016). Technology has been another primary driver of globalization, …show more content…
Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018). Jeff Bezos the C.E.O of Amazon incorporated the company as Cadabra in 1994 but changed the name to Amazon for the website launch in 1995. Bezos selected the name Amazon because it was “exotic and different”. Moreover, he assumed company’s size as Amazon River, one of the largest rivers in the world. As it was his aim to achieve such heights. Headquarter of Amazon is in Seattle, Washington. The company has individual websites, software development centers, customer service centers and fulfillment centers in many locations around the world (Rouse, 2018) II. IMPACTS OF GLOBALIZATION a. VARIOUS WAYS IN WHICH GLOBALIZATION AFFECTED …show more content…
Inc., n.d.). In 1994, when Amazon was founded it was running out of the founder Jeff Bezos’ garage, making $20,000 per week in profit. Recently in 2014, Amazon has acquired the title of “The Everything Store” with 154,100 full time employees working for it, and it earned $90 billion in revenue. Amazon has broadened its market by allowing sellers to sell their new and used items along with Amazon products, giving customers the option to choose a product that matches their affordability (shorr,
Over the past decade, Amazon has gained a vast advantage in revenue because frankly, they have produced better electronic products. With this being said, B&N did try to increase business by branching out to school and university bookstores. Their organization operates campus bookstores for leading universities, colleges and other types of schools. They work closely with each institution to promote their own unique vision and help them to build a bookstore that adds value to the campus (Hardiman,
This week , Jeff Bezos, CEO of Amazon, purchased high-end grocer Whole Foods Market causing a painful stock devaluation amongst other retail grocers, according to Michael Hilzick, LA Times staff writer. While Bezos paid top dollar for the company, and improved Amazons stock price; other grocery sellers watched stock values plunge as much as 9% , as was the case for Walmart. Most confusing to stock watchers is what Amazon hopes to gain with the purchase: consumer data, distribution centers, retail store fronts, or on-line grocery market share? The purchase of Whole Foods gives Amazon access to more than 400 high-end store fronts and strategically located distribution centers around the world.
In just a month of its establishment Amazon was selling books to all 50 states of the US and Canada. From the onset the company had ambitions of being an “everything store” (funding universe, 2004). Over the years Amazon increased its offerings to include DVDs, electronics, furniture and other consumer goods (Amazon.com, 2015). The product range increase was accompanied by a series of acquisitions. Oliva et al (2003) describes Amazon to be using a get big fast (GBF) strategy which is premised on keeping prices low while expanding market
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. The most common example of globalization might be Ebay or Amazon. Nowadays flows of goods and services are not only cheap and fast, but reliable and secure.
The business model of Amazon ensures that the product is available for the customer at the best possible price. The fast shipping strategies also ensure customer satisfaction. These aspects offer an excellent value proposition to the customer. Since Amazon is present globally and is successfully into business for a long time period, the strategies of Amazon are sustainable.
ECONOMIC Regarding the economy, Amazon needs to face the American and European money related emergency, which has seen their income reduction amid 2008. Monetarily confounded times have a tendency to change customers' buy propensities and this one is no exemption, with new gatherings as the infuriated shopper and new concentrate on value getting to be a piece of the new reality. The organization has four great perspectives to draw upon however, in order to minimize the effect. Initially, it effectively survived an emergency amid the .com rise of 2000, so it has past experience taking care of storms.
The process of globalization has a major effect in the changing world. Globalization have two main drivers which is economic institution and information technology. There is a rapid change in technology as well as knowledge therefore for organizations to be competitive in the global market they need to be familiar with new
Amazon has such a large consumer span with having really everything you may need at your fingertips. Not too long after Amazon launched, lots of backlash came from other business within the industry who feared the competition and the potential damage that Amazon could have on their business. One of those particularly being Barnes & Noble. For many years Barnes & Noble was the leading book store in the nation. Once Amazon launched their sales slowly began to decline.
The gaps between the leaders and the rest of the world are closing very gradually. But digital technologies can domestic complexity and create slenderer models for going global. This is a moment for companies to rethink their organizational erections, products, assets, and competitors. Digital globalization makes policy choices even more multifaceted. Value chains are fluctuating, new pivots are evolving, and economicactivity is being transmuted.
Introduction Globalization: a complex and controversial phenomenon that has faded the economic state boundaries inevitably in the past decades mostly due to technological advancements. The phenomenon is usually referred to consist of four waves. The fourth and most resent wave started around year 2000 and was a follow- up to the third wave, starting from the early 1980s, where companies started to outsource production to developing countries. The fourth wave is mostly consisting of China’s rise to be one of the most favored production sites and hence, changing the economy and the political hegemony of the United States. The globalization has increased hugely during the third and fourth waves and national economies in the world have increased co-operation and thus, the world has been integrating into one immense economy system.
Amazon.com commonly referred to as ‘Amazon is one of the largest internet based retailers in the United States of America. It mainly provides electronic and cloud computing services. The company was originally founded as an online bookstore by Jeffery Bezos (Bezos) in Seattle, Washington State in 1994. He completed and shipped orders from his garage to customers across the United States of America, and forty five international countries. The company went public in 1995, and reincorporated in the state of Delaware in 1996.
The advancement of technology and information has taken place in many countries. The Advancement of communication technology with the more extensive network of television, radio, and the Internet spread in different countries with different cultures create a society in a country can easily get information from countries around the world. This has led globalization. Globalization is the process whereby individual lives and local communities are affected by economic and cultural forces that operate world-wide (Ashcroft, Griffiths, & Tiffin, 2000). Opportunities
Due to this, the portal is known to have specific days where they give massive discounts to their buyers. Competitors The giant companies that want to disrupt Amazon Amazon isn’t under attack from just start-ups, though. There are big companies with deep
finishing goods, order handling, delivery, dispatch, invoicing; Sales & Marketing for example customer management, order taking, promotion, market research, sales analysis; Servicing for example warranty, maintenance, education and training. Support activities of Amazon include administrative and finance infrastructure; human resources management; product & technology development and procurement. This leads to less cost and more profit margins. The Walmart value chain is also almost the same except there are physical stores involved in between while Amazon has everything through online platform.
The company also promote aggressiveness among employees and because of that, the employees consider each other as competition and not as a team. Since the social context is becoming really important, Amazon is forced to change their corporate culture. Their culture had brought a lot of success to the company, but it is now however time to change towards a positive environment and a positive culture that