Being a B2B and B2C company, Amazon, in reference to The Economist, was founded by Jeff Bezos who owned an online bookstore, had its initial public offering in 1997 and has since has continued to develop at a rapid pace, causing large-scale disruption not only to retail but to a variety of businesses spanning logistics, entertainment, advertising and manufacturing in their home countries. He also developed his empires abroad. Amazon already has e-commerce sites in 14 markets and expects further growth. (The Economist) Business model: Amazon does business with businesses of all sizes, from individual businesses to corporations. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayNew and unestablished industries can transition to personal accounts and then transition to a business account when their sales increase. Amazon's many platforms and facilities are the foundation for numerous Amazon companies and associates. These companies benefit from customer visibility and improved sales opportunities, while Amazon generates revenue on the sale of its products, including through association salaries, fees and management. (Chron, Charmayne Smith) Beyond that, according to Smart Insights there are said to have been a number of business model improvements that focus on new services and hardware: for example Kindle e-readers, Fire tablets, smartphones and growth towards the business-oriented Amazon Web Services. Amazon Major and annual membership program that includes unlimited free shipping. AWS is not known outside the tech world, but Amazon continues to hotly pursue this fog service. In 2011, 82 new features and services were introduced. There are now 10 AWS regions in the world, which include the eastern US, 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 Business Model Canvas Key Partners: Logistics Collaborators Authors and Publishers Reseller System Key Activities: Marketing Manufacturing and design Value Proposition: Suitability Price Great Variety Customer Relationship: Autonomous Structure Automatic Structure Customer Segment: Single Power Group Power Global Customer Market Key Resources: Significant Warehouses Human: Web Application and Enhancements Cost Structure: Low Structure cost Economies of scale Revenue streams: Sale of goods Books and electronic content Retailer transaction instructions E-business strategies: As stated in Smart Insights, the preparation for numerous online stores, the lowest prices are mainly for famous products, with fewer famous products commanding higher prices therefore a better margin. For Amazon, free shipping tips are also used to drive cart size growth because consumers must spend above a defined amount to collect free shipping. Amazon ties the deal in numerous methods, including demonstrating a modern inventory accessibility report, delivery time estimates, and options for expedited delivery. The American Customer Satisfaction Index gave Amazon.com a score of 88, which was the highest customer satisfaction rating at the time. never documented in any service business, whether online or offline. It has been noted by Round (2004) that Amazon has always focused on customer satisfaction. Each Amazon site is carefully checked with regular obtaining of service, observinggetting the site and download speed. Fascinatingly, it also inspects the upper/lower limits of the site's revenue per minute: there is an alarm system more like a control plant where when a site's revenue drops below $10,000 per minute, the alarms they have to play! (Smart Insights) Source: (Data imposed by eMarketer) Amazon has always focused on making consumers happy. The budget for their advertising is small for the size of the company, but they have always focused on being an indispensable part of their results. "If you create a great experience, customers tell each other about it. Word of mouth is very powerful." Amazon also spent $2.8 billion on digital marketing. Their sales in 2014-2015 were $71.84 billion. In 2015, more than 90% of Amazon's marketing budget was focused on SEO and PPC. Interestingly, the only other major brand that has consumed a larger portion of its search marketing budget is Etsy. After Amazon, Apple's share was 85%, while the rest Target, Best Buy, Home Depot and Kohls were all less than 20%. (Profit Works) Problems faced by Amazon in e-business strategies: Recently, Wal-Mart achieved a big victory against Amazon.com. Wal-Mart's online sales growth outpaced Amazon.com's sales for the period ended Dec. 31. Wal-Mart's gains against Amazon.com follow a well-thought-out strategy, including acquiring online search technologies and building warehouses. In 2013, for example, Wal-Mart Labs, Wal-Mart's e-commerce technology arm, 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 leader, beating Wal-Mart 7-1. However, Wal-Mart's strategy demonstrates that Amazon does not have a sustainable competitive advantage. Any retailer with deep pockets to recruit or acquire top talent can make a foray into its markets. And Wal-Mart isn't just any retailer. It is the largest retailer in the world. And he got there by competing on prices. This is what makes Amazon's problem big. It is used to competing on thin margins, focusing on sales growth rather than profitability. Wal-Mart's foray into Amazon's marketplaces could be a game-changer: 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 slim profit margins. Amazon. (Forbes) In contrast, Amazon.com followed a different strategy. First he built the warehouses, stacked the books and fulfilled the orders. Secondly, it launched a shrewd promotional strategy (discounts and free shipping) which allowed the company to achieve economies of scale. Third, it has expanded to all types of goods, to achieve economies of scope, sometimes by signing up to online affiliates. Fourth, it has expanded into the content development business, working with novice authors and recently with experienced authors. Fifth, it entered the electronics market, which provided a vehicle to sell electronic content and other products online. In a sense, Amazon.com has applied a series of strategies that regular companies have adopted for years, including Standard Oil, the famous monopoly of the 1880s. Amazon.com has expanded both horizontally and vertically, putting up barriers that keep the competition away from its territory, as other successful websites have done. But with customers resisting a price increase, Amazon could find itself in trouble 20, 2016)