How did Amazon come up in a $ 1 trillion enterprise

Amazon was named the second company in the US to earn more than $ 1 trillion (US $ 1,123 trillion) in market capitalization following Apple.

The stock rose above its market cap of $ 1 trillion at $ 2,050.50 cents a share on September 4 (local time). Amazon is the second largest US firm to surpass $ 1 trillion. Of course, the first company, Apple said, was $ 1 trillion on August 3.

In addition to Amazon, Jeff Bezos, the CEO of the company in July, took first place in the world’s wealthy rankings, placing Bill Gates in second position with a dominant position. On July 16 (Bloomberg), Jeff Bezos exceeded $ 150 billion in net worth in a billionaire index published by Bloomberg. Bill Gates is second with $ 95.3 billion. In 1999, Bill Gates’ assets amounted to $ 100 billion, or $ 149 billion. In this way, Jeff Bezos has become richer than Bill Gates in its heyday. This amount is the richest since 1982 when Forbes began revealing the rich ranking. It has been named the richest person on Earth for the last 36 years.

Amazon now grows into a big corporation where it’s harder to find someone you do not even know your name. This globally recognized company was an online shopping mall selling books when it first started.

Jeff Bezos had the desire to dominate the global market with online mail-order sales when Amazon was the first online bookstore. Of course, after opening an online bookstore, we start selling a variety of clothing and other items. After that, Amazon starts the Amazon Associate program. The program will allow you to reward your product sales simply by placing a link to the Amazon product page when you introduce your favorite product to a blog or website that promotes products sold by Amazon. The program will contribute to expanding sales after Amazon’s reputation has grown.

In 2005, Amazon will expand its customer service by launching the Amazon Prime, a subscription-based subscription service that offers free day-to-day shipping. In the same year, we also started enterprise cloud services like Amazon Simple Storage Service (Amazon S3) and Amazon Elastic Compute Cloud (Amazon EC2).

Amazon operates the Amazon Prime, a paid membership service. Amazon Prime is an Amazon subscription service that allows you to take advantage of benefits such as prime music, prime videos, prime photos, and free prime time games that deliver music instantly when you place an order online and enjoy unlimited music viewing services.

Jeff Bezos, CEO of Amazon Prime, said it had more than 100 million members this year. The Amazon Prime is attracting more than 90% of its retention rate. Focusing on both speed and content, it provides value for prime members only. Of course, it brings stable revenue to Amazon. Last year, Amazon increased its membership by shipping more than 5 billion items for Prime members.

This increase in membership leads to earnings. Amazon has added more Australia, Singapore, the Netherlands, and Luxembourg this year and has been conducting prime-day events around the world for six hours and 36 hours more than last year, with more than 100 million prime members participating in the sale. During this period, revenue from Amazon reached $ 1 billion. Amazon’s highest sales ever. Sales of 12 hours of sales have increased by 89% compared to last year.

Once again, Amazon starts to serve a variety of areas, including launching the Amazon Kindle, an e-book service in 2007. As the market share increases, the Amazon continues to grow.

As of last year, Amazon has more than 300 million customers with services in 11 countries. In October of last year, it recorded sales of more than 3 billion products a month, and occupied the largest share of e-commerce site worldwide.

Amazon is trying to continue its growth by announcing that it will provide Hindi support for mobile web and apps to boost sales in India.

Of course, the words that describe Amazon are not just about sales. Amazon is reaching out to many different areas to create a new language for Amazon. First Amazon has been working on AWS (Amazon Web Services) since 2002. AWS is a business cloud service that brings tremendous net profit to Amazon. In fact, Amazon’s quarterly operating profit shows that online sales are still in a deficit or a surplus, but AWS is always operating at a high operating margin of 25%. In fact, in the second quarter, Amazon saw sales of $ 6.15 billion, growing 49 percent year-over-year and operating profit of $ 1.642 billion, up 84 percent year-over-year. Having a huge profit on the Amazon.

In recent years, reports have been made that the Pentagon is likely to become the Amazon’s Joint Enterprise Defense Infrastructure (JEDI) bidder, a $ 10 billion plan to turn all data into the cloud. The reason is because of the conditions required for JEDI bidding. The cloud business should earn more than $ 2 billion a year and the distance between data centers should be less than 240 km. Up to this point, competitors are shrinking as part of Amazon. The server also has 32GB of RAM or more, which is said to meet the Amazon standard. Microsoft is 28GB and Google is 30GB, so upgrading is a costly investment to meet the requirements.

It’s no exaggeration to say that Amazon does not have a place to look at. Amazon Prime, a service similar to Netflix, is also in service. Amazon is focusing on sports, such as NFL real-time relaying or starting next year’s broadcast of the Premier League. Recently, it was reported that Amazon is preparing a Free Dive service to insert advertisements into its TV set-top box, Fire TV series, without having to purchase a prime membership fee. It is an analysis that is aimed at increasing the influence in the field of video for the 48 million Fire TV users around the world.

Amazon is also introducing the Amazon Echo series, a smart speaker. Inside, there is Alexa, a speech recognition AI secretary. The Amazon Eco Series has sold more than 50 million units of cumulative sales. Jeff Bezos, an e-mail to shareholders last year, said that tens of millions of echoes were sold, but in a press release released in July this year, the number of devices supported by Alexa has more than tripled over the past year. Amazon has made Alexa available for other manufacturers as well.

Even in the field of voice secretary, Amazon has a preponderance of market share, but if this market grows, it will have an impact on voice shopping. As of this year, voice shopping is only $ 2 billion, but by 2022 it is expected to grow to $ 40 billion. Alexa is expected to earn between $ 5 billion and $ 6 billion a year in voice shopping by 2020, so it is likely to be a new revenue source for Amazon.

In addition, Amazon has also unveiled the Alexa Auto SDK, which allows automakers to use Alexa this year. As a result, Alexa will be on display after 2019.

That’s why some analysts say that Alexa might be the big deal for Amazon to dominate the next smartphone platform. Amazon has defined Alexa Voice Service (AVS) and Alexa Skill Kit (ASK) to make Alexa available to third parties. Thanks to Alexa, there are already over 5,000 third-party services that provide voice services. Amazon is also releasing the Alexa Simulator (, which is aiming to make Alexa available immediately when speaking on the web. In other words, Amazon is improving the environment so that all Web services can be used by Alexa.

In this regard, after the touch interface dominated the Amazon smartphone age. To be precise is to try to dominate the audio interface that will be noticed in the Internet of Things. If Alexa is not an operating system, but a platform software that mediates between hardware and software, Alexa could become the dominant hub for dominating life-related products, including the Internet of things.

In August 2017, Amazon announced a partnership with Alexa, Cortana, Microsoft’s Voice Secretary. In August, Kota and Alexa also released their interoperability features.

A sneak peek inside New York City’s first Amazon bookstore from CNBC .

It is also expanding to the offline area. Bought half of Amazon’s $ 13.7 billion in cash and opened the Amazon Books store. Amazon also unveiled Amazon Go, a new form of store that allows customers to keep their products without the need for calculations at the checkout counter in 2016, and opened its first store in Seattle in January. Instead of removing the regular checkout counter, customers can go to the store and shop through a dedicated app installed on their smartphone. It is a store where you can shop with a lot of cameras and sensors located in the store, and you can shop with automatic payment when you go out of the store.

Although Amazon reportedly accounted for nearly half of its Internet shopping mall sales in the US in 2016, Amazon is expected to dominate two-thirds of all online shopping malls in the next few years. The prospect is that it will become an infrastructure ruler who dominates all transactions by expanding to the offline without staying in online shopping malls. Amazon’s $ 1 trillion news may be a symbolic sign that the trend of the IT market in the early 2000s, represented by Google Dollars, is changing to Amazon.



Through the monthly AHC PC and HowPC magazine era, he has watched 'technology age' in online IT media such as ZDNet, electronic newspaper Internet manager, editor of Consumer Journal Ivers, TechHolic publisher, and editor of Venture Square. I am curious about this market that is still full of vitality.

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