Page-5 – How Jeff Bezos expand his Business
How Jeff Bezos expand his Business – In 1998, Bezos diversified into the online sale of music and video; by the end of the year, he had also expanded the company’s products to include a variety of consumer goods. Bezos used the $54 million raised during the company’s 1997 equity offering to finance aggressive acquisition of smaller competitors.
In 2000, Bezos borrowed $2 billion from banks, as its cash balances dipped to only $350 million. In 2002, Bezos led Amazon to launch Amazon Web Services, which compiled data from weather channels and website traffic.
In late 2002, rapid spending from Amazon caused it financial distress when revenues stagnated. After the company nearly went bankrupt, he closed distribution centers and laid off 14% of the Amazon workforce.
In 2003, Amazon rebounded from financial instability and turned a profit of $400 million.
In November 2007, Bezos launched the Amazon Kindle.
According to a 2008 Time profile, Bezos wished to create the same flow state found in video game simulations in books; he wished readers would fully engage with books.
In 2013, Bezos secured a $600 million contract with the Central Intelligence Agency (CIA) on behalf of Amazon Web Services. In October that year, Amazon was recognized as the largest online shopping retailer in the world.
In May 2016, Bezos sold slightly more than one million shares of his holdings in the company for $671 million, the largest sum he had ever raised from selling some of his Amazon stock.
On August 4, 2016, Bezos sold another million of his shares for $756.7 million. A year later, Bezos took on 130,000 new employees when he ramped up hiring at company distribution centers.
By January 19, 2018, his Amazon stock holdings had appreciated to slightly over $109 billion; months later he began to sell stock to raise cash for other enterprises, in particular, Blue Origin.
On January 29, 2018, he was featured in Amazon’s Super Bowl commercial. On February 1, 2018, Amazon reported its highest ever profit with quarterly earnings of $2 billion. Due to the growth of Alibaba in China, Bezos has often expressed interest in expanding Amazon into India.
On July 27, 2017, Bezos momentarily became the world’s wealthiest person over Microsoft co-founder Bill Gates when his estimated net worth increased to just over $90 billion. His wealth surpassed $100 billion for the first time on November 24, 2017, and he was formally designated the wealthiest person in the world by Forbes on March 6, 2018, with a net worth of $112 billion.
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