Amazon.com's Business Model and its Evolution




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

ABSTRACT

The case describes the business model of one of the world’s largest e-tailers, Amazon.com, Inc. (Amazon). Amazon had been at the forefront of innovation, adding and refining technology and changing the way customers shopped. It had a sustainable and innovative business model that intensely focused on its long-term growth opportunities as opposed to short-term profit margins. The case discusses the business model innovation at Amazon and how it evolved from just an online bookstore into one of the largest e-commerce platforms in the world where customers could find and discover anything they wanted to buy online in a more convenient way. The case outlines the four pillars of Amazon’s business model — low prices, wide selection, convenience, and customer service. Amazon attracted customers through low prices, prompt delivery, an ever-expanding array of services and products, and exemplary customer service...

Business Strategy Case Studies | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies
or
Business Strategy Case Studies | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies
or
PayPal (13 USD)

Issues

The case is structured to achieve the following teaching objectives:

  • Evaluate Amazon’s business model, and understand the reasons behind the company’s success.
  • Understand the importance of disruptive innovation in the retail and e-commerce space.
  • Understand the need to continuously reinvent the business model of a company amidst rising competition and the changes in the business environment
  • Understand the issues and challenges related to Amazon’s business model; Study the customer-centric philosophies of Amazon, the systems and processes, and how these contributed to the success of the company.
  • Identify the challenges faced by Amazon and explore strategies that the company might adopt to overcome them.
Contents
INTRODUCTION
BACKGROUND NOTE
BUILDING AND EVOLVING THE BUSINESS MODEL
AMAZON’S GROWTH WHEEL
GROWTH NOW, PROFITS LATER
RESOURCES AND PROCESSES THAT SUPPORT THE STRATEGY
CHALLENGES
THE ROAD AHEAD
EXHIBITS

Keywords

Business model; The business model canvas, Four box framework; Business model innovation, Competitive Strategy, Blue Ocean Strategy, Eliminate-Raise-Create-Reduce framework, TOWS matrix, Customer Value Proposition, Profit formula, Innovation, Amazon Flywheel, Product development, Digitally-driven supply chain, e-commerce

INTRODUCTION - Next Page>>