NAME: SANIYA MARGHANI

ROLL NO.: 37

CLASS: FY BBA IB

SUBJECT: COMMERCIAL GEOGRAPHY

TOPIC: MANUFACTURING UNITS

AMAZON

INTRODUCTION
Amazon was founded on July 5, 1994, by Jeff Bezos from his garage in
Bellevue, Washington. The company initially was an online marketplace for
books but incrementally expanded into a multitude of product categories, a
strategy that has earned it the moniker "The Everything Store".

The company has multiple subsidiaries, including Amazon Web Services,

providing cloud computing, Zoox, a self-driving car division, Kuiper Systems, a
satellite Internet provider, and Amazon Lab126, a computer hardware R&D
provider. Other subsidiaries include Ring, Twitch, IMDb, and Whole Foods
Market. Its acquisition of Whole Foods in August 2017 for US$13.4 billion
substantially increased its market share and presence as a physical retailer.

Amazon has a reputation as a disruptor of industries through technological

innovation and aggressive reinvestment of profits into capital expenditures. As
of 2023, it is the world's largest online retailer and marketplace, smart speaker
provider, cloud computing service through AWS, live-streaming service
through Twitch, and Internet company as measured by revenue and market
share. In 2021, it surpassed Walmart as the world's largest retailer outside of
China, driven in large part by its paid subscription plan, Amazon Prime, which
has close to 200 million subscribers worldwide. It is the second-largest private
employer in the United States.

As of October 2023, Amazon is the 12th-most visited website in the world and
82% of its traffic comes from the United States.

Amazon also distributes a variety of downloadable and streaming content

through its Amazon Prime Video, MGM+, Amazon Music, Twitch, and Audible
units. It publishes books through its publishing arm, Amazon Publishing, film
and television content through Amazon MGM Studios, including the Metro-
Goldwyn-Mayer studio which acquired in March 2022. It also produces
consumer electronics—most notably, Kindle e-readers, Echo devices, Fire
tablets, and Fire TVs.

Amazon has been criticized for customer data collection practices, a toxic work
culture, censorship, tax avoidance, and anti-competitive behavior.

Amazon's logo has multiple meanings:

Arrow
The arrow points from "A" to "Z" to represent Amazon's wide range of
products. The arrow also forms a smile, which represents customer satisfaction
and the company's end-to-end service.
Color
The orange color of the arrow symbolizes positivity, warmth, and endless
possibilities.
Words
The words "and you are done" represent Amazon's willingness to help
customers solve problems.
Advantages of Amazon as a manufacturing units:

1. Streamlined Supply Chain: With its extensive network and logistics

capabilities, Amazon can optimize the supply chain process, ensuring efficient
production and distribution of goods.

2. Advanced Technology and Automation: Leveraging cutting-edge

technology and automation, Amazon can enhance production efficiency, reduce
labor costs, and maintain consistent product quality.

3. Innovative Product Development: With access to vast consumer data and

market insights, Amazon can innovate and introduce new products tailored to
customer preferences, thereby staying ahead of the competition.

4. Cost Efficiency: By vertically integrating manufacturing into its operations,

Amazon can potentially reduce costs associated with outsourcing production to
third-party suppliers.

5. Quality Control: With direct oversight of the manufacturing process,

Amazon can implement stringent quality control measures to ensure that
products meet its standards and customer expectations.
6. Flexibility and Scalability: Amazon's manufacturing units can quickly adapt
to changes in demand and scale production capacity accordingly, allowing for
agile responses to market dynamics.

7. Brand Trust and Reputation: Amazon's strong brand reputation and global
presence instill trust in consumers, potentially driving sales and market
penetration for products manufactured by the company.

Disadvantages of Amazon as a manufacturing units:

1. Market Dominance Concerns: Amazon's significant market power and

vertically integrated business model may raise concerns about anti-competitive
behavior and hinder fair competition in the manufacturing sector.

2. Supply Chain Dependency: As Amazon becomes more vertically

integrated, there is a risk of over-reliance on its own manufacturing capabilities,
which could pose challenges in sourcing raw materials and components from
external suppliers.

3. Labor Issues: Amazon has faced criticism in the past for its labor practices,
including concerns over working conditions and employee treatment. Expansion
into manufacturing could exacerbate these issues if not managed properly.

4. Regulatory Scrutiny: With its vast reach and influence, Amazon may attract
increased regulatory scrutiny, particularly regarding labor practices,
environmental impact, and competition concerns.

5. Innovation Stagnation: While Amazon has a track record of innovation,

there is a risk that its focus on manufacturing could divert resources away from
other areas of innovation and product development.
6. Quality Control Challenges: Scaling up manufacturing operations may
introduce challenges in maintaining consistent product quality, especially if
production processes are heavily automated and lack human oversight.

7. Environmental Impact: Increased manufacturing activities could have a

significant environmental footprint, including energy consumption, waste
generation, and carbon emissions, which may conflict with Amazon's
sustainability goals.

LOCATION OF AMAZON:

Amazon has a widespread global presence with headquarters in Seattle,

Washington, USA. Additionally, it has numerous fulfillment centers, data
centers, offices, and distribution facilities located across various regions
worldwide, including North America, Europe, Asia, and other continents.

Factors which affects the location of Amazon:

1. Talent Pool: Seattle is home to several prestigious universities and research

institutions, providing a rich talent pool of skilled professionals in technology,
engineering, and business. This talent ecosystem was crucial for Amazon's
growth and innovation.

2. Tech Hub: Seattle has emerged as a major technology hub, attracting leading
tech companies and startups. Being part of this vibrant tech ecosystem allows
Amazon to collaborate, recruit top talent, and stay at the forefront of
technological innovation.

3. Infrastructure: Seattle offers robust infrastructure, including transportation

networks, airports, and access to international markets. This infrastructure
facilitates efficient logistics and distribution operations, essential for Amazon's
e-commerce business.
4. Quality of Life: Seattle's high quality of life, with its natural beauty, cultural
amenities, and recreational opportunities, makes it an attractive location for
employees. This helps Amazon attract and retain top talent from around the
world.

5. Proximity to Suppliers: Situated on the west coast of the United States,

Seattle provides convenient access to suppliers, manufacturers, and distribution
centers, supporting Amazon's supply chain operations.

6. Jeff Bezos' Influence: Amazon's founder, Jeff Bezos, initially chose Seattle
as the company's headquarters due to personal reasons, including his desire to
be close to family and his preference for the city's culture and lifestyle.

Overall, Seattle's combination of talent, technology infrastructure, quality of

life, and strategic location played a pivotal role in Amazon's decision to
establish its headquarters in the city.
Benefits behind the location of Amazon:
1. Access to Talent: Seattle is home to a highly educated workforce, including
graduates from prestigious universities such as the University of Washington.
This talent pool enables Amazon to recruit skilled professionals in technology,
engineering, marketing, and other fields, supporting its innovation and growth.

2. Tech Ecosystem: Seattle has a thriving technology ecosystem with numerous

tech companies, startups, and research institutions. Being part of this ecosystem
allows Amazon to collaborate with other industry leaders, share best practices,
and stay abreast of emerging trends and technologies.

3. Infrastructure: Seattle offers robust infrastructure, including transportation

networks, ports, and airports. This facilitates efficient logistics and distribution
operations, crucial for Amazon's e-commerce and fulfillment services.

4. Quality of Life: Seattle's high quality of life, with its natural beauty, cultural
attractions, and recreational opportunities, helps attract and retain top talent.
Employees enjoy living in a vibrant city with access to outdoor activities,
diverse cuisine, and a thriving arts scene.

5. Proximity to Suppliers and Partners: Located on the west coast of the

United States, Seattle provides convenient access to suppliers, manufacturers,
and partners in the region. This proximity supports Amazon's supply chain
management and enables close collaboration with key stakeholders.

Overall, the location of Amazon's headquarters in Seattle offers a conducive

environment for talent recruitment, innovation, infrastructure support, and
access to a thriving business ecosystem, contributing to the company's success
and growth.
Location of Amazon plays a major role in profit making:

1. Cost Efficiency: Seattle's relatively lower cost of living compared to other

major tech hubs such as Silicon Valley helps Amazon save on operational
expenses, including office space, salaries, and other overhead costs,
contributing to higher profit margins.

2. Talent Acquisition and Retention: The presence of a highly educated and

skilled workforce in Seattle allows Amazon to recruit top talent without having
to offer exorbitant salaries or relocation packages. Additionally, Seattle's
attractive lifestyle and amenities help retain employees, reducing turnover costs
and ensuring continuity in operations.

3. Strategic Location: Seattle's location on the west coast of the United States
provides strategic advantages for Amazon's logistics and distribution operations.
It allows for efficient shipping and transportation to both domestic and
international markets, reducing shipping costs and improving delivery times,
which ultimately enhances customer satisfaction and drives sales.

4. Access to Technology Ecosystem: Being situated in a thriving technology

ecosystem enables Amazon to collaborate with other tech companies, startups,
and research institutions, fostering innovation and driving product development.
This innovative environment contributes to the creation of new revenue streams
and enhances Amazon's competitiveness in the market.

Overall, while the direct impact of location on profit-making may not be

immediately apparent, the combination of cost efficiencies, talent advantages,
strategic positioning, and access to innovation in Seattle all play crucial roles in
supporting Amazon's profitability and long-term success.