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    Business Model and Its Evolution: Samira Mostafa I.D#2017-1-95-059

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    Mirza Galib
    This document summarizes Amazon's business model and its evolution. It discusses how Amazon started as an online bookstore in 1994 and has since expanded into consumer goods, electronics, and cloud computing. Amazon's strategy has focused on low prices, vast product selection, and reducing shipping costs. It has also prioritized long-term growth over short-term profits. Amazon invests heavily in technology and customer service to undercut competition and retain customers. This allowed Amazon to surpass Walmart as the world's largest retailer in 2015. The document also examines Amazon Web Services and how it has become a major revenue driver, as well as questions around whether Amazon can maintain focus across its many business lines.

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    Business Model and Its Evolution: Samira Mostafa I.D#2017-1-95-059

    Uploaded by

    Mirza Galib
    93 views11 pages
    This document summarizes Amazon's business model and its evolution. It discusses how Amazon started as an online bookstore in 1994 and has since expanded into consumer goods, electronics, and cloud computing. Amazon's strategy has focused on low prices, vast product selection, and reducing shipping costs. It has also prioritized long-term growth over short-term profits. Amazon invests heavily in technology and customer service to undercut competition and retain customers. This allowed Amazon to surpass Walmart as the world's largest retailer in 2015. The document also examines Amazon Web Services and how it has become a major revenue driver, as well as questions around whether Amazon can maintain focus across its many business lines.

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    This document summarizes Amazon's business model and its evolution. It discusses how Amazon started as an online bookstore in 1994 and has since expanded into consumer goods, electronics, and cloud computing. Amazon's strategy has focused on low prices, vast product selection, and reducing shipping costs. It has also prioritized long-term growth over short-term profits. Amazon invests heavily in technology and customer service to undercut competition and retain customers. This allowed Amazon to surpass Walmart as the world's largest retailer in 2015. The document also examines Amazon Web Services and how it has become a major revenue driver, as well as questions around whether Amazon can maintain focus across its many business lines.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    93 views11 pages

    Business Model and Its Evolution: Samira Mostafa I.D#2017-1-95-059

    Uploaded by

    Mirza Galib
    This document summarizes Amazon's business model and its evolution. It discusses how Amazon started as an online bookstore in 1994 and has since expanded into consumer goods, electronics, and cloud computing. Amazon's strategy has focused on low prices, vast product selection, and reducing shipping costs. It has also prioritized long-term growth over short-term profits. Amazon invests heavily in technology and customer service to undercut competition and retain customers. This allowed Amazon to surpass Walmart as the world's largest retailer in 2015. The document also examines Amazon Web Services and how it has become a major revenue driver, as well as questions around whether Amazon can maintain focus across its many business lines.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Amazon.

    com
    Business Model and its Evolution

    Samira Mostafa
    I.D#2017-1-95-059
    SYNOPSIS
    ● World’s Largest e-commerce marketplace and cloud
    computing platform
    ● Founded in 1994 by Jeff Bazos
    ● Started as an online bookstore
    ● Expanded to consumer goods, electronics and cloud
    computing
    ● One of the most innovative companies since the beginning
    ● Business model Built around:
    - Low Prices
    - Vast Selection of Products
    - Shipping and handling cost reduction
    SYNOPSIS
    ● Strategy to put long term investment, market gains and value
    creation ahead of short term profit.
    ● Provided hassle-free ordering and delivering solutions
    ● Customer service, loyalty and customer retention - Three
    important aspects of Amazon service culture
    ● Invested heavily in building advanced technological
    infrastructure
    ● Sacrificed profit margin to undercut competition
    ● Customer centric Product Development
    ● Digitally driven supply chain
    ● Biggest challenge in growth: Keeping prices low
    ● Surpassed Walmart in 2015 as the world’s largest retailer.
    MISSION
    “To be Earth’s most customer-centric company, where customers
    can find and discover anything they might want to buy online, and
    endeavors to offer its customers the lowest possible prices.”

    Criticism:
    Effective Shortcomings

    ● Focused ● Use of superlative


    ● Graphic ● Too long
    ● Forward-looking and directional ● Not memorable
    Amazon’s Generic Competitive Strategy
    Overall Low-cost Provider Strategy

    ● Growth now profits later formula


    ● Proactively cut prices
    ● Free shipping
    ● Offer lowest prices to customers by improving operating
    efficiencies
    ● Offer huge discount on most popular products while make
    profit on less popular ones
    Amazon’s Offensive Strategy

    Offering an equally good or better product


    at a lower price
    Case Questions
    1. Will their research arm at A9 labs continue to provide the company with better
    science and experimentation?

    A9 labs work on innovations in search and advertising by creating mobile apps that
    allow shoppers to shop conveniently on amazon. Almost every business provides
    online help as well as develop apps to connect to their customers at present.
    Amazon’s A9 lab might be providing very good insight on customer choice and
    preferences. So, future experimentations holds lots of potential.
    Case Questions
    2. Will AWS continue to mint money for the company as enterprise shifts to hybrid cloud
    management models?

    ● Amazon Web Services - a platform of computing services offered online for other
    websites.
    ● Provide developers to access to amazon’s technology infrastructure that they could
    use to run virtually any type of business.
    ● AWS has grown to into one of the largest computing services in the platforms in
    the world

    AWS may continue to create more money for the company as Amazon is
    constantly growing, innovating and improving it’s services. It is adapting to
    new technologies as well as creating way for new services that was not very
    prominent before its arrival.
    Case Questions
    3. Will the company be able to maintain its ability to execute across so many
    different types of business lines, let alone maintain focus?

    Amazon has a plethora of businesses which they have been managing very
    efficiently and excelling at almost all aspects of it’s operation. Since they have
    a very big scope of business maintaining constant focus and maintaining top
    position will be very challenging in the future but constant innovation and
    adaptation to modern times is the key. They need to hold on to their core
    competencies and improve accordingly.
    THANK YOU

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