Business Management: About Amazon - The Largest Online Retailers

    Business Management Name Institutional Affiliation   Business Management Introduction Amazon.com or Amazon has been ranked one of the largest online retailers and also a cloud service provider in the world. Jeff Bezos is the founder the company. Initially, it was a bookseller, but later it was expanded to offer different products and services to their consumers. The company has its own electronic devices like kindle fire tablet, Fire TV, e-book reader and the streaming media adapter. It has a comprehensive Amazon Web Services (AWS), which acts as the cloud computing platform. It launched its first AWS in 2006 to facilitate online services for client-side application and websites. The backbone of the organization’s growing collection of web operations includes Simple Storage Services and Amazon’s Elastic Compute Cloud abbreviated as S3 and EC2 respectively. The company was initially named Cadabra when it was founded in 1994. In 1995, Jeff Bezos, the founder of the firm renamed it Amazon and launched its first website. Bezos selected the name Amazon since he considered it different and exotic and reflected on the Amazon River, which is one of the largest rivers in the universe. He wanted the company to be like the river. Its headquarter is in Seattle, Washington. The company has several websites. It has developed centers for software development and customer services, and ensured the fulfillment of their customer needs around the world (Smith & Linden, 2017). Since its formation, the company has succeeded in most of the programs it has ventured into, which has facilitated its expansion and growth over the years. It has more than three hundred and ten million active customer accounts in the whole world. It offers some of the most valuable brands in the world. Allowing Amazon to establish its headquarters in the city of Toronto is likely to influence the town both positively and negatively. There are potential costs and potential benefits the city is expected to experience. Potential Benefits Amazon is a large firm and allowing it to have its headquarter in Toronto city will benefit the city in many ways. The benefits include business motivation, stronger brand recognition, increased employment, diversity of the market, the economy of scale, and high compensation packages. The first one is business motivation. Toronto city has both large and small businesses. At the moment, the businesses enjoy monopolistic advantages since they do not face any serious competition (Smith & Linden, 2017). Allowing Amazon to have a business branch will advance the level of competition in the market. Businesses and entrepreneurs will become self-motivated, improving their competitive advantages. Motivation will force the company to improve their service delivery and the quality of the products and services they offer. Secondly, Amazon will create many employment opportunities for the people. The mayor and other stakeholders in the city should ensure that before allowing the company to set its business branch in the town, they should ensure that eighty percent of the workers the company intends to hire should be the residents of the town. It is a good method that can be used to raise the living standards of the people and consequently raise the national income (Ritala, Golnam, & Wegmann, 2014). Next, Amazon will diversify the market. The company offers a lot of online products. Thus, it will be easy for other retailers or wholesalers to access different products, which they can sell in various parts of the country (Ritala et al., 2014). It would be easy for online customers to access different products with just a click of the button. Businesses will also strive to improve on the type of products or services they provide to the people. Next, firms will benefit from economies of scale. Large firms like supplier companies, banks and other financial organizations ...