Amazon’s Business Model and Its Evolution

AMAZON’S BUSINESS MODEL AND ITS EVOLUTION

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Introduction

Amazon.com is an online company or business dealing with buying and reselling of goods and products that was founded in 1994 by Bezos. Internet at this period was listed as good medium for online business. The internet made investors think about connecting with other people in the world. The company acts as a global link to all buyers and sellers in the world. Its operation covers all the continents and therefore has a lot of sales. It is known to be the most giant e-commerce business existing in the world. Amazon.com has attracted many investors in the world due to its increment in revenue and growth. This is making it to become a dominant online retailer in the business world surpassing other online businesses. Amazon.com was first launched as a bookstore that operates online back in the year 1995. It was initially named as river Amazon by Bezos. This company experienced a rapid growth that made it to deal with all consumer goods in the world. It initially made use of all business models which boosted its operation making it to deal with consumer electronic products up to technology business. Amazon.com reinvested the profits and also ploughed back much of its cash into expanding its operation which later made to its growth. Amazon.com offers shipping services to people in different regions of the world at a very cheap price. It also acts as a platform for web developers who advertise their works there at a specific rate depending with duration of appearance on the website. Its success is behind a vast selection of products in accordance to the first delivery methods used by the website. Amazon.com offers safety to all products under shipment until when they reach the customer’s destination. Amazon.com also has its offices in most of the countries in the world where products are delivered for the customers. Amazon’s net sales by the end of 1996 were approximately $15.7milion and also had some loss of around $5.7million. the company therefore strived to maximize the profits and minimize the losses.

Abstract

The main purpose of this case is to analyze the Amazon’s business model and how it evolved with time. This case will also focus on the chief elements of the Amazon.com and what makes it to gain a competitive advantage. There are different strategies behind its success. The case will also tackle how these strategies have been evolving with time. Some of the strategies that the case will focus concerning e-commerce will be; personal media players, cloud-computing services and the digital media streaming. An analysis of how successful the strategies are will also be tackled. This case aims at determining the reveal made by the assessment of the competitive strength related to Aazon.com as an e-commerce business in comparison to other business in the retail industry. The study will also focus on comparing the competitive position of Amazon.com in both digital streaming and personal, media players with its position in e-commerce and the services related to cloud-based computing on whether it’s stronger or weaker. There are also well-analyzed steps which should be taken to ensure that both mobile platforms and digitally streamed media take part in making sure that Amazon improves in is general performance. In addition, the paper will tackle some of the strategic issues that affect Amazon as an online business and what the top management should mostly focus as far as both internal and market circumstances are concerned. I will address each issue coherently explaining its root cause. At the end of the case study, the paper will have some recommendations made to amazon addressing solutions to strategic issues facing the company to maintain its rapid growth and profitability. These recommendations will base on ensuring the continuity and success of Amazon as a dominant online business.