How Jeff Bezos Built His Empire (amazon Investment And Acquisitions)
In the 2000s, eBay and Amazon have been the two most dominant online retailers in eCommerce.
But at the turn of the decade, Amazon has been at the top of the competition ever since.
As a result, it’s almost predictable that Jeff Bezos would become among the top billionaires. And in 2017, Jeff Bezos overtook Bill Gates as the richest man on the planet before he was surpassed by Elon Musk in January 2021.
So how Jeff Bezos was able to take Amazon to this point of success?
For today, we will look into how Jeff Bezos built his empire. We will analyze his investments and acquisitions and how we can apply them to our own businesses.
So without further ado, let’s begin…
Photo credits: nbcnews.com
How Jeff Bezos built his empire (Amazon investment and acquisitions)
One factor of Amazon’s success is acquiring companies that aided the company to advance its technological capabilities and grow its profits as well.
So here are few examples of those acquisitions, and hopefully, some of the business insights here can also help your business scale up as well—
Apple has Siri, Google has Google Assistant, and Amazon has Alexa.
But do you know that Alexa started as a virtual assistant known as Evi, developed by Evi Technologies?
Also, Safaba Translation Solutions is the company’s sector that supports Amazon’s language translation function, which is especially important to Kindle.
Business and Cloud Services
Companies that offer cloud services are third-party players that store and manage data from Amazon’s business operation, including data from their customers.
Amazon Web Services is the company’s sector that provides cloud services.
In the following years, AWS partnered with another cloud communications company called Twilio.
Aside from features offered by AWS, software developers will also have access to messaging and notification services.
Clothing and Accessories
Amazon also invested in several apparel and accessories company whose business operations are mostly through online or eCommerce.
Some of these include the following—
Owlet Baby Care – as the title suggests, the company offers accessories that primarily address the infant’s welfare. One of their flagship products includes the heart monitor.
Thalmic Labs – they offer devices that target the health and wellness audience. They manufacture armband devices that detect electrical pulses from the wearers’ muscles.
Shoefitr – in early 2015, Amazon acquired Shoefitr to improve the user experience of customers looking for fashionable items, specifically shoes. They are a company that offers 3D technology to aid customers in finding the best shoe size.
Amazon invested in a sector they called “Amazon Pay” in 2007. What the company does is that they provide customers an option to use their Amazon accounts to pay for the items they wished to buy on online retailers other than Amazon.
Food, Beverage, and Consumer Products
Some of the companies in the food and consumer product niche that they have formed a partnership with include the following—
The Orange Chef – the company, offers devices that provide the nutritional value of the ingredients you are using.
Yummy 77 – they are a food delivery startup.
Rocer.com – they provide grocery delivery services.
Not only is Amazon the leading online retailer in the world, but it also has surpassed the physical retailing stores such as Walmart and Target.
Companies in the retail niche refer to those that are involved in the manufacturing of Fire Tablet, Kindle, and Echo Dot.
The companies that helped Amazon make this vision a reality are—
Annapurna Labs – instead of building hardware from scratch, they acquire companies such as Annapurna to provide hardware that can power up some of its devices, which include the Kindle e-reader.
Touchco – to compete with the iPad and Samsung tablets, Amazon partnered with Touchco to manufacture a more robust version of Kindle.
Mobipocket – they are a company involved in producing e-file for physical books.
This includes companies that produce home smart devices.
Ecobee – it is a company that specializes in connected-thermostat that can compete with Nest.
Alottazs Labs – they are involved in developing Alexa’s capability.
Media Production and Entertainment
It is Amazon’s sector responsible for its entertainment services, which include music, creative tools, streaming services, etc.
Twitch Interactive – I’m sure everybody in the gaming industry knows what Twitch is. They are a company that offers game streaming services.
Comixology – they are an online publishing platform that primarily focuses on comic books, manga, and graphic novels.
Audible – it’s a platform that has been around since the mid-90s. They offer podcast and audiobook services.
IMDB – it is an online platform that provides information that’s mostly related to the entertainment genre like home videos, films, online streaming content, video games, and television programs.
This sector comprises subsidiaries in the field of literary publications, ephemera online, and printing and fulfillment services.
Westland – they are a publishing company based in India. The business venture will allow Westland authors not only to reach domestic readers but international audiences as well.
Booksurge – they are a company that is engaged in on-demand printing services that will enable book fulfillments.
Social Commerce and Networks
These are online retailers or specific websites with functionalities such as daily-deal offers or social media marketing.
Some of the companies include—
Living Social – it is an online marketplace that enables the community of the platform to purchase or shares a “what to do” list within the city.
Exchange.com – it is another online marketplace that allows members to buy and sell literary works such as rare book editions, music files, and rare recordings.
PlanetAll – it is a platform that allows its users to perform social networking, setting dates in a calendar and address book.
Transportation and Logistics
The outstanding logistics of the company is an important factor in how Jeff Bezos built his empire.
It is Amazons’ sector that is involved in freight services. Some of its subsidiaries that are under this category include—
Yodel – they are among the top courier in the United Kingdom alongside Royal Mail.
Amazon Robotics (formerly Kiva Systems) – the company is based in Massachusetts, and they specialize in manufacturing robotic fulfillment system solutions.
But where are all the drones?
In the year 2013, a lot of hype was created from Amazon drone—the Prime Air.
However, the said future of the courier system hasn’t fully materialized yet.
So we just have to wait and see.
So yes, I believe that’s about it!
I hope today’s topic has provided you sufficient insight into how Jeff Bezos built his empire.
Thank you for the time!
And I hope to see you on the next topics!
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