The Impact of Disruptive Innovation on Amazon

Jeff Bezos and the Founding of Amazon

Jeff Bezos first founded Amazon Company in 1994. The company since then has made tremendous impact in internet business. An internet retail company majors in book selling and buying. Through technological innovations, the company has attracted many customers world over as it offers perfect electronic commerce at the convenience of the customers. The company mostly employs computer-clouding technology through which they offer online retail services. Moreover, they have diversified their websites so that they have a different website for United States, United Kingdom, France, Ireland, and Canada. Moreover, the company has enhanced its technology so that they are able to make international shipping of their products.

The Impact of Innovation

According to Clayton et al (2015), disruptive innovation refers to the use of technology to make immense change in business. Through disruption, small companies are able to make progress and challenge large established businesses or companies. Amazon is thus considered a disruptive company because it was started at a time when most book retailers only sold books on visible bookstores. These retailers overlooked the modern trend and the customers’ needs to be offered book retail online. Amazon in its innovation recognized customer needs to be given easy access through internet platforms. The company grasped the opportunity to offer online retail that most companies had overlooked hence attracting large online customers. Besides, the electronic commerce absolutely favored the customers through convenient sales. The company also created new market footholds through its technological innovations (Clayton et al 2015). Previously, most booksellers used physical bookstores to sale to their customers. Contrary, amazon saw the need to transfer the physical retails to e-commerce to meet the new demands of book buyers.

Reference

Clayton C. , Michael E & McDonald R. (2015, December 15). What is Disruptive Innovation? Retrieved July 20, 2018, from Harvard Business Review: https://hbr.org/2015/12/what-is-disruptive-innovation