Being a B2B and B2C company, Amazon, with reference to The Economist, was created by Jeff Bezos who owned an online bookstore, had its IPO in 1997 and since then , it has grown at a rapid pace, causing large-scale disruptions not only in retail but in various businesses straddling logistics, entertainment, advertising and manufacturing in their home countries. She also expanded her empires abroad. Amazon already has e-commerce sites in 14 markets and plans further growth. (The Economist) Business model: Amazon builds business relationships with businesses of all volumes, from sole proprietorships to corporations. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay New and unestablished industries can get started with personal accounts, then upgrade to a business account when their sales increase. Amazon's numerous platforms and facilities form the basis of many Amazon companies and associates. These companies benefit from customer exposure and improved sales opportunities, while Amazon generates revenue from its own product sales, including association salaries, fees, and guidelines. (Chron, Charmayne Smith) Apart from this, according to Smart Insights, there have been a variety of business model improvements that have focused on new services and hardware: e.g. Kindle e-readers, Fire tablet, smartphones and market growth. Business-oriented Amazon Web Services. Amazon Major and annual membership program including unlimited free shipping. AWS is not known outside of techies, but Amazon still follows this mist service insistently. In 2011, 82 new features and services were introduced. There are now 10 AWS Regions worldwide, including the US East, two in the West, Europe, Singapore, Tokyo, Sydney, Brazil and China. (Smart Insights, Dave Chaffey, January 19, 2018) Source: (comScore, Bloomberg, JP Morgan estimates, January 2011 Business Canvas: Chaffey Model Amazon Canvas Business Model Key Partners: Logistics Associates Authors and Publishers Retailer System Activities Key: Marketing Manufacturing & Design Value Proposition: Suitability Price Wide Variety Customer Relationship: Self-Install Auto-Install Customer Segment: Single Power Group Power Global Customer Market Key Resources: Large Warehouses Human: Web Application and Enhancement Cost Structure: Low Cost Structure Economies of Scale Revenue Stream: Asset Sale E-Books and Content Reseller Transaction Instruction E-Commerce Strategies: As noted in Smart Insights, the preparation of many online stores, pricing. the lowest are mainly for famous products, with fewer famous products commanding higher prices, therefore a better margin. For Amazon, free shipping suggestions are also used to drive basket size growth because consumers must spend more than a set amount to receive free shipping. Amazon ties the deal together in several ways, including demonstrating modern inventory accessibility reporting, delivery time estimates, and expedited delivery choices. The American Customer Satisfaction Index gave Amazon.com a score of 88, which was the highest customer satisfaction score at the time. never documented in a service business, whether online or offline.Round (2004) noted that Amazon has always focused on customer satisfaction. Every Amazon site is carefully checked with a regular accessibility service observing site accessibility and download speed. Fascinatingly, it also inspects the upper/lower limits of the site's revenue per minute. There is an alarm system that is more like a control factory where when a site's revenue falls below $10,000 per minute, the alarms should go off! (Smart Insights) Source: (Data obtained by eMarketer) Amazon has always focused on making consumers happy. Their advertising budget is small compared to the size of the business, but they have always strived to be an indispensable part of their success. "If you create a great experience, customers talk about it. Word of mouth is very powerful." Amazon also spent $2.8 billion on digital marketing. Their sales from 2014 to 2015 were $71.84 billion. Over 90% of Amazon's marketing budget was focused on SEO and PPC in 2015. It's worth noting that the only other major brand that has devoted a larger share of its budget to search marketing is Etsy. Succeeding Amazon, Apple's share was 85%, and others Target, Best Buy, Home Depot and Kohls were all below 20%. (Profit Works) Problems Faced by Amazon in E-commerce Strategies: Recently, Wal-Mart won a big victory against Amazon.com. Wal-Mart's online sales growth outpaced Amazon.com's for the period ended Dec. 31. Wal-Mart's gains against Amazon.com follow a well-designed strategy, which includes acquiring online search technologies and building warehouses. In 2013, for example, Wal-Mart Labs, the e-commerce technology arm of Wal-Mart, acquired four startups: Torbit, a cloud-based website acceleration service; Inkiru, a predictive intelligence platform; OneOps, a cloud-based automation technology; and Tasty Labs. Amazon remains the online marketplace leader, beating Wal-Mart 7-1. However, Wal-Mart's strategy demonstrates that Amazon does not have a sustainable competitive advantage. Any retailer with considerable financial resources to recruit or acquire top talent can make a foray into their markets. And Wal-Mart isn't just any retailer. It is the largest retailer in the world. And we achieved this through price competition. That's what makes Amazon's problem so big. It has been accustomed to competing on razor-thin margins, focusing on sales growth rather than profitability. Wal-Mart's foray into Amazon's markets could change the rules of the game: it will become extremely difficult for Amazon to raise the price of its "bundle", or worse, it could fuel a price war that could wipe out Amazon's low profit margins. (Forbes) On the other hand, Amazon.com followed a different strategy. First, she built the warehouses – she stacked the books and fulfilled the orders. Second, it launched a judicious promotional strategy (discounts and free shipping) which allowed the company to achieve economies of scale. Third, it has expanded to all kinds of merchandise, to achieve economies of scope, sometimes by subscribing to online affiliates. Fourth, it has expanded into the content development industry, partnering with experienced authors for the first time and recently. Fifth, it entered the electronics market, which provided a way to sell electronic content and 20, 2016)