Amazon

Definition

Amazon is a multinational technology company known for its e-commerce platform, cloud computing services, digital streaming, and artificial intelligence. As a major player in the media ecosystem, Amazon has transformed how content is distributed and consumed, particularly through its streaming service, Prime Video, and its ownership of various media properties.

5 Must Know Facts For Your Next Test

1. Amazon was founded in 1994 by Jeff Bezos and originally started as an online bookstore before expanding into various product categories and services.
2. The company has a significant influence on the media landscape through Prime Video, which competes with other streaming services like Netflix and Hulu.
3. Amazon Web Services (AWS) is a crucial component of the company's revenue stream, providing cloud solutions for businesses worldwide.
4. In 2017, Amazon acquired Whole Foods Market, showcasing its ambitions in the grocery sector and retail market beyond just e-commerce.
5. Amazon's algorithms analyze consumer behavior to personalize shopping experiences, significantly impacting how media and products are marketed and sold.

Review Questions

• How has Amazon's entry into the media industry through platforms like Prime Video changed consumer behavior?
  • Amazon's entry into the media industry with Prime Video has shifted consumer behavior by offering convenience and a vast library of content at competitive prices. The subscription model allows users to binge-watch shows without additional costs per title, leading to increased consumption of diverse genres. This change has pressured traditional media companies to adapt their strategies to keep pace with consumer expectations for accessibility and affordability.
• Evaluate the impact of Amazon Web Services (AWS) on both Amazon's business model and the broader technology landscape.
  • AWS has significantly transformed Amazon's business model by providing a substantial revenue stream that supports its e-commerce and media operations. As one of the leading cloud service providers, AWS has revolutionized how businesses manage their IT infrastructure, promoting scalability and efficiency. This shift towards cloud computing has not only bolstered Amazon's position in the tech industry but has also influenced countless organizations to adopt similar models for their operations.
• Analyze the implications of Amazon's marketplace strategy on small businesses and traditional retail sectors.
  • Amazon's marketplace strategy has created both opportunities and challenges for small businesses and traditional retail sectors. On one hand, it provides small businesses with access to a vast customer base and an efficient sales platform. On the other hand, it intensifies competition as these businesses must navigate lower pricing pressures and increased visibility of competing products. Additionally, traditional retailers face disruption as consumer preferences shift toward online shopping facilitated by Amazon's convenience and speed, leading to a re-evaluation of their business strategies.

Related terms

Prime Video: Amazon's subscription-based video on demand service that offers a wide variety of movies, TV shows, and original content to its members.

Cloud Computing: The delivery of computing services over the internet, allowing users to store data and access applications remotely. Amazon Web Services (AWS) is a leading provider in this space.

Marketplace: A platform that allows third-party sellers to sell products directly to consumers, which Amazon has effectively utilized to expand its product offerings.