Amazon
Describe two events that would be most significant during the year
Among two events that will be most significant during 2019 is Amazon opening up its second headquarters in Virginia. According to Sullivan (2018), after Amazon opening its second headquarter it will benefit from state incentive, general tax breaks, cash grants, and infrastructure spending. The county and state agreed in giving the company direct subsidies that total to 573 million dollars. According to Seattle times, as cited by Weise (2018) with the second, headquarter the company will be able to have more space making it able to expand its tech talent that had outgrown its first headquarter in Seattle. The two world-class headquarters will be able to lure the brightest and best tech workers who will be able to work freely. Besides, the first headquarter has been experiencing a sheer mass of employees who have been having problems with income inequality, house shortages, traffic and gentrification making the splitting of the headquarter into two a solution to the problems. In brief, the second headquarter’s establishment in Northern Virginia will significantly help Amazon.
Besides, as a move to strategically positioning itself the company recently launched Amazon cash. Carrasco (2019) indicates that Amazon started Amazon cash making it to strategically position itself to 32.6 million households that do not have access or make little use of banking service. Therefore, with Amazon cash, it is a message for the two categories of customers the unbanked or underbanked customers that they do not have a barrier to using Amazons services. Also, it is an effort of attracting African-American and Hispanic consumers. According to FDIC study, these groups are mostly unbanked. Further, American cash has an aspect that Amazon uses to engage and attract African-American and Hispanic consumer through a program in specific stores. Amazon chose stores in the location where the groups always do their shopping. In brief, the event will increase the customer base of Amazon by 32.6 million households making its customer base bigger in America.
Discussion of the current condition of the company
Born in 1994 as a modest seller Amazon condition is not the same. DePillis (2018) indicates that the company has grown organically and by accretion into a giant company that plays a critical role in many sectors including producing movies and transporting freight. For instance, the company has a full suite of electronic devices including homes security system, electronic reader and others. Its servers have the third largest cloud-based data explaining how the firm is successful in retail business. Besides, the company is deflating brick and mortar store (Krishna,2018). However, DePillis (2018) argues that Amazon has become a brick and mortar in itself since it has a $13.7 billion physical bookstore, foray into non-cashier convenience stores and acquisition of whole foods. The company has a goal of becoming a place where its customers find a handyman and even can get a loan or buy home insurance. In short, from its benefits as compared to the risks, Amazon has benefited the American economy.
Besides, Amazon is successful in its retail business because of several factors. DePillis (2018) indicates the company has an obsessive-compulsive focus on the customers in comparison to its competitors who do not focus on consumers thus making it successful. Also, the company is large with diversified holding making hence able to have a competitive advantage. Further, the company understands the website as a source of information that is helpful to the company. The information makes Amazon understand customer search behavior and price sensitivity making the company successful. The information is a powerful tool of Amazon innovation. Amazon concentration on innovation has made the company have 49 new patents. The company strategically leverages and connects customer information making the company make predictions about customer behavior while capturing more disposable income. The company has created a wonderland for its consumers which increases its dominance in retail business. In conclusion, the condition of Amazon has changed a lot since its establishment as it is now a successful retail business rather than the modest old seller.
References
Weise, E. (2018). Amazon’s two new headquarters: What you need to know. USA TODAY. Retrieved from https://www.usatoday.com/story/tech/2018/10/09/where-amazon-put-its-second-headquarters-what-you-need-know/1567985002/
Sullivan, P. (2018). Waiting for scrutiny of Amazon’s headquarters plans? It could happen in 2019.The Washington Post. Retrieved from https://www.washingtonpost.com/local/virginia-news/waiting-for-scrutiny-of-amazons-h2q-plans-it-could-happen-in-2019/2018/12/26/9a71d160-02e8-11e9-9122-82e98f91ee6f_story.html?utm_term=.bf83722cc942
Carrasco, M. (201). Amazon Cash Banks On Engaging African-American, Hispanic Consumers. Media post. Retrieved from https://www.mediapost.com/publications/article/331486/amazon-cash-banks-on-engaging-african-american-hi.html
Krishna,M. (2018). The Amazon Effect on the U.S. Economy. Investopedia. Retrieved from https://www.investopedia.com/insights/amazon-effect-us-economy/
De Pillis, L. (2018). It’s Amazon’s world. We just live in it. CNN Business. Retrieved from https://edition.cnn.com/2018/10/03/tech/amazon-effect-us-economy/index.html