You Are an Investment Analyst
Amazon versus eBay
Angelia Bradley
Professor Timothy Carr
Financial Accounting
December 11, 2012
Amazon versus eBay
Jeff Bezos, founded Amazon.com in 1994 when he left his job as Vice-President of the Wall Street firm D.E. Shaw to move to Seattle. After reading a report that projected annual Web growth at 2.300 percent he launched his website in 1995. He began drawing up a plan to sell a list of products on the internet. Bezos narrow his list to five most common products: compact discs, computer hardware, computer software, videos, and books. The $40,000 investment from Nick Hanauer and $100,000 from Tom Alburg help created a more user friendly website that we used today.
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By doing this, it created profits for everyone involved and Amazon was back in business. On Labor Day, Monday, September 4, 1995, Pierre Omidyar, a 28 years-old software developer, who previously worked for Claris, develops software for Apple computers started eBay from his home. Omidyar first called his website Auction Web because he was told that was his first choice for a website name with the concept of auctioning. The first item he placed to auction was a broken laser pointer. He received a bid and sold for $14.83. Omidyar was very shocked when the item sold and realized that he had created something extraordinary. The website began to grow and gain great familiarity. Omidyar tried to register the site under the domain echobay.com. It was already in usage, so Omidyar decided to shorten the name to eBay.com which originated from Echo Bay Technology. The website is now ready for business and later became a leader in Internet revenue. Items on eBay are listed by categories and anyone with an eBay account can bid on the items. You can find anything on eBay, including cars, real estate, collectibles, concert tickets, CDs, clothing, DVDs, artwork and etc. When items are listed for auction on eBay it can be seen by millions of people all over the world.
According to Swartz (2006) implied that emphasis on eBay was the customer. The nature of online auctions required that strangers trust each others. EBay worked very
Weird Al Yankovic, through his humor, gives a pretty accurate description of how eBay works. Though obviously made as a joke, it
Amazon is a company that was founded in the two-bedroom house of a man named Jeffery Preston Bezos in 1994. That simple fact is something that could never happen in an economy without
In 1994, Jeff Bezos created Amazon with the idea of selling books online. Jeff Bezos was raised by his mother and stepfather, who was a Cuban immigrant that later adopted him. He quit his job on Wall Street with a New York hedge fund to work to fulfill his dream. In 1995, the dream became a reality. Bezos knew when he created Amazon, he knew what he wanted and that he wanted it to be an everything store.
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which
Dembosky, A. (2012). Ebay moves beyond its dotcom roots. Available:http://www.ft.com/cms/s/0/df3723ca-1773-11e2-8cbe-00144feabdc0.html#axzz2EbzDqb5Y. Last accessed 10th Dec 2012
Amazon.com Inc. was initiated by Jeff Bezos in 1994 after realizing the rapid rate at which the internet and websites were growing in popularity among business organizations and individuals. In 1995, the company started operating its website for selling books, videos, compact discs, computer software and computer hardware before being incorporated in1996 as an e-commerce company (Reuters, 2015). Apparently, the company offers may products and services for sale; these products include merchandise for resale products offered by third parties. In this regard the
Life insurance is meant to provide funds to replace a breadwinner's to protect and support dependents. Chad and Haley are dependents, not income providers. Therefore, the purchase of life insurance is unnecessary and not recommended. The Dumonts should use the money they would spend on policies for the children to increase their own coverage.
For the month of December, I was given an assignment consisting of $100,000 and four stocks to invest in. My four stocks were The Ralph Lauren Corp., Visa Inc., Master card Inc. and The Chevron Corp. As stated I was given a month to record my data and I ended up with a total capital gain of $5,518.36 for the one month period for my investments. I have to thank you Mr. Acker, this project was not difficult, but it did confuse me. Receiving this assignment scared me in a way, because I didn’t know what I was getting into. The finance world is scary and tricky, one minute the market is doing good and other days it would be low. While calculating my capital gains or losses I thought I would lose a larger
One of America’s greatest start-up success stories is Amazon. Jeff Bezos launched the website in 1995 and he is now having revenues of $61 billion. At the start of e-commerce, Amazon was an innovator of delivering supreme customer service, which at that times was very rare. Amazon is an illustration of massive organising skills, the company sells an enormous range of products, all day, every day, for 365 days a year and is able to maintain over 80 warehousing and fulfilment centres.
Amazon.com is a worldwide American-based electronic company founded in 1994 by Jeff Bezos, the actual chairman and CEO. At the beginning, Amazon was just a small online book retailer, but thanks to the development of Internet at the end of the 90s, it grew quickly into a huge online retail store. Today, in the United States, one out of three online sales are made through Amazon’s website.
1) Describe Plenitude's position in the US market in the early 1996. Why has it apparently been less successful in the US than in France when the French "success" formula was used in the US?
Jeffrey Bezos, formerly a senior vice president for D. E. Shaw & Company, founded Amazon.com in 1994. D. E. Shaw is a Wall Street-based investment bank, and Mr. Bezos was assigned to find good Internet companies in which to invest. During the summer of 1994, he stumbled across a
Amazon started with Jeff Bezos’ idea on creating a company based around selling on the internet (Int. Directory). In the 1994, Jeff left the Wall Street firm D.E. Shaw, moved to Seattle. There, he created a business plan, from which Amazon was born. Jeff projected a 2,300% of annual web growth over time from selling on the internet. He took the five most profitable products and put them on his stock. At the time, books were a strong suit for Amazon, and where most of their profit came from (Int. Directory). Their competition was Barnes and Noble, who were large retail booksellers dominating the market. By 1995,
This created an environment where consumers were receiving what they desired and also at higher volume creating profits. “ Donahoe- “We have to create a marketplace where we’re helping our sellers give our buyers what they want”” (Armstrong, 2013). Giving the customers what they desire created profit and growth for eBay.
Omidyar added several clever ideas to eBay’s web service to stimulate interest. First, he adopted an auction-like trading format to not only create a sense of urgency, but also allow buyers to follow the bidding status for each item. Secondly, he provided sellers with opportunities to “spice up” their auction pages. Sellers were encouraged to upload pictures of their items or add music. Thirdly, Omidyar created the eBay Community, composed of registered traders sharing in common interests and passions for collectible and tradable goods. eBay listed all participants' email addresses and provided chat rooms, such as the eBay cafe, where eBay community members could talk about sale items, hobbies, or other non-trading related topics. Finally, eBay allowed users to discuss the relative quality of items, sellers, and buyers in the eBay community by providing a “Feedback Forum” for community members to interact. eBay's first auction occurred on Labor Day 1995. Three years later, with over one thousand categories listed and 70,000 new sale items added daily, eBay had become the largest and most popular person-to-person trading community on the Internet. The goods traded on eBay’s web site included: antiques, sports memorabilia, books, toys, cars, computers, dolls, coins, jewelry, electronics, photography, and music. The company neither received goods nor payments for goods, but simply provided an arena for buyers and sellers to interact. To generate