Amazon – के बारे में जाने | Amazon prime | Amazon web services
Amazon A company that began in a garage to become one of the biggest companies in the world. A company through which you must have bought something some time. Today we will talk about Amazon. We will definitely do stock analysis of amazon apart from that we will also learn from Amazon how to become a good entrepreneur. How we can build a successful business even if we start small I, Jagdeep Singh welcome you to Groww channel. Today we will talk about Amazon. How Amazon became a huge company from a small company. Also, we will analyze Amazon stocks and I will tell you which all sectors Amazon has spread its business into. And as an entrepreneur, as an investor what we can learn from Amazon. If we talk about Amazon’s share price, Amazon’s share price has increased from 1.5 dollars to 1800 dollars. In rupees, its share price increased from 100 rupees to 1, 25,000 rupees. So you can imagine how its price increased. If you had invested in it how much your money would have increased. The story of Amazon starts in 1994 when its founder, Jeff Bezos left his high profile job on wall street to come back to Seattle. In Seattle, he spotted a gap in internet services. So he thought of starting a business based on the internet. So he started a company called Amazon.com Its first business was selling books online. You might be surprised, friends, to hear that this company was started in a garage. Amazon kept growing, and in 1999, something happened that burst the internet bubble in the US. And many internet-based companies closed down. Even in that bubble burst Amazon was one of the three companies which survived. They did not only survive they expanded well afterward. What was different about Amazon’s business that set it apart? It was nothing else but innovation. Amazon always innovated themselves to keep up with the customers. They took themselves to different business segments where they saw gaps. They would first use that business segment to advance their business and would eventually open the business to other businesses To talk about Amazon’s business, it is divided mainly in three verticals. First, the retail business. second, AWS and third, Prime. Let me talk about retails first. it is the normal app that we all use to do any kind of shopping. It is Amazon’s main business. It gets the most revenue from this. To name a country, then in retail, Amazon makes the most revenue from the US. To talk about the second business vertical, AWS, Amazon Web Services Now, how did Amazon start AWS? There is an interesting story behind this too. Because when Amazon was expanding it used to get a lot of web traffic. In 2002, Amazon faced server issues. That is how Amazon identified this gap. And thought why not launch own servers. They made their own servers and started using them. They felt that there were so many companies in the market who had the potential to grow but didn’t have good web services. So Amazon identified that gap and opened AWS to everyone. That business expanded well. The third business vertical is Prime. Amazon Prime. How did Amazon Prime start? Like there was a reason behind starting Amazon.com, to tackle Walmart, Amazon thought why not tackle Netflix? And to do that, Amazon came up with Amazon Prime Services. Through which a user got entertainment services and apart from that, if they ordered something on retail, as a prime member, they got quicker services too. And whenever there are discounts, prime members get the most benefit. This is called OTT service– Over the Top service. Now you understoof how Amazon expanded and what its services are. But it is also important to know in numbers where Amazon stands. How it has expanded in terms of numbers. How its sales increased from small figures to large figures. As you can see from the graph, how Amazon’s sales have increased every year, if I talk about 2004, Amazon’s sales were 6.92 billion. In 2006, it became 10.71 billion. In 2006, Amazon had started AWS. In 2007, it became 14.84 billion when Amazon launched kindle. After this, its sales kept on increasing. To talk about 2017, in 2017, Amazon’s total sales were 177.87 billion. I told you how Amazon’s sales increased. But now you must be wondering which business gives how much sales. Let’s discuss that. As you can see on the screen In 2018 Amazon’s net sales were 232,887 billion. To break it down, 141.3 billion out of it was from retail. from North America alone. In the international retail business their total revenue is 65.8 billion. I will tell you something interesting now about AWS sales. AWS sales, which is 25.6 billion might seem small to you although it is just 11% of the total sales. But if I talk about growth rate, AWS’s growth rate in sales in 2016 was 55% in 2017 was 43% and became 47% in 2018. So friends, AWS is such a business that is still growing at a high percentage every year. In addition to this, I have to mention another interesting fact about AWS. Its market share in cloud services is largest in the world. Let’s talk about another financial parameter called earnings per share. How much earning a company has per share. As you can see from my screen Amazon’s EPS was 4.90 dollars in 2016 in 2017, it became 6.15 By 2018, it became 20.14 Its EPS has increased manifold in the recent years because its sales have also increased and their margins have also improved. What I told you until now, was spoken from the perspective of an investor how to analyze this company. Now I will tell you a few things from the perspective of a business man. As an entrepreneur, what all we can learn from Amazon. The first lesson we get to learn from Amazon is innovation. A business should always innovate itself according to the customers requirements. and Amazon did this very well. When they needed servers, they launched AWS. After that they launched Kindle, and many new services and products such as drone delivery system and much more. Amazon has always changed itself according to the customers’ needs. So if you start your own business, make sure that you keep innovation in mind. Always innovate in the right way at the right time Otherwise, even big companies have failed due to lack of innovation. For example, Nokia. Second important point is customer focus. For whom do we start businesses? For our customers. Every business should change itself according to the customer’s needs. And always strive to resolve customers’ problems very well. To give you an example, as a customer, if I have a problem, Amazon resolves it efficiently. If it cannot be resolved, I get compensated on time. To talk about Jeff Bezos, he takes time off his busy schedule to resolve customers’ queries himself. So that he knows what problems their customers face and how to solve them in the future. The third lesson that we can learn from Amazon is persistence. How a founder should stay persistent in his business, when difficulties arise how to face them when they think that they are going to fail how to keep trying. If I take Jeff Bezos as an example, he left an amazing job and came back to Seattle to start a small business called Amazon. He used to run this company from a garage. He must have felt demotivated sometimes but he stayed persistent And grew Amazon and made it the biggest company in the world. This was Amazon’s success story. if we recognize companies like Amazon in their early phases, we can become good investors. Also, if we take these lessons and incorporate them into our business then we can become good entrepreneurs. So friends, answer my question now. If you got an opportunity to invest in companies like Amazon, would like to invest? If your answer is yes, then comment YES. If not, comment NO. Friends, all our videos are strictly for educational purposes. Our intention is to make you a better investor and to give you financial knowledge in simple terms. If you enjoyed this video, please like it. Comment and subscribe to our channel because we are coming up with more videos on finance in the upcoming days.