Amazon’s Foray into India: Competing in an Emerging Market




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Background Note

The history of Amazon dated back to the early 1990s when Jeffrey Preston Bezos (Bezos), a graduate in Electrical Engineering and Computer Science from Princeton University, understood the massive potential of the internet and decided to take advantage of it.

After completing his graduation in 1986, Bezos took up a job in a start-up company run by two professors from Columbia University. The company built tele-communication networks for Wall Street firms. In 1988, Bezos left the company and joined Banker’s Trust where he led the development of computer systems. In early 1990, when he was the youngest vice-president of the company, he quit the job to work for D.E.Shaw’s hedge fund till 1994.

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In 1994, Bezos moved to Seattle to work on a business plan that could leverage the immense growth potential of the internet. He created a list of 20 products which could be marketed online. Among them, the five most promising products were compact discs, computer hardware, computer software, videos, and books. Bezos finally decided that his new business would sell books online, due to the huge demand for literature, the low price points for books, and the huge number of titles available in print.......

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