Amazon is the largest E-commerce company in the world and follows a defined business model, this presentation is about how the E-Business model of Amazon is derived and its workings
3. Introduction
The Amazon came into the world in 1994 as the brainchild of Jeff Bezos and in 1995 was
officially launched on the world wide web as an online bookstore and went on to become
the largest bookstore in the world with over 2.5 million titles.
By the year 1997 Amazon expanded more then just being an online bookstore to online
supplier of everything an consumer demands and the growth went exponentially making it
one of the largest online vendor in the world and on an average 20% of internets flow is
directed towards Amazon.
Headquarters: Seattle, Washington, united states of America
Revenue: US$232.887 Billion(as off 2018)
CEO: Jeff Bezos
4. The E-Business Model Of Amazon Inc
The Amazon is an diversified organization and thus is present or suitable in various e-
business models based on functionality and transactions.
On the basis of functionality:
● Subscription Model (Amazon prime)
● Advertising Model (Exclusivity launch platform)
● Merchant Model (mediator between firms and customers)
On the basis of transactions:
● Business to customer (Amzon.com/.in)
● Business to business (Amazon web services and Amazon Prime Air)
5. SWOT Of Amazon Inc
Strengths Of Amazon Inc:
1. Economies of scale (huge amount of sparse funds)
2. Globa-loc-al (adoption of local culture)
3. Customer centric (state of the art CRM)
4. Cost leadership (Amazon Logistics increases pace and reduce
response time)
Weakness Of Amazon Inc
1. Growing but losing margins (eggs in too many baskets not all profitable)
2. High debt undertaking (providing services at own cost)
3. Tax avoidance (several cases regarding tax
manipulation in UK and US)
4. Product failure (failure of Fire OS and FIre Series
Kindles)
6. Opportunities For Amazon Inc
● E-wallets diversification (Amazon Pay advancement as prime wallet)
● Acquisitions (Acquiring budding potential such as
Tapzo)
● Physical stores (Amazon Go and Amazon Now)
● Product differentiations (Amazonbasics electronics and tailored)
Threats For Amazon Inc
● Data leaks/privacy (Phishing and other unauthorized data
accesses)
● Legal regulations (Changes in the FDI policy is an current
example)
● Local players (local players that have deep
understanding of the market in Indian context players
such as Flipkart and Snapdeal)
7. The Problem Faced By Amazon Inc
The major problem faced by the Amazon is the organization is diversified into several units
around the globe from manufacturing goods to IT solutions and security solutions over that
several acquisitions that have allowed Amazon to grow exponentially but the issues not all the
units are profitable as others and this is causing a decline in revenue and global market capture
by Amazon Inc.
Secondly even though the Amazon is expanding rapidly around the globe the organization has
not re-engineered its business plan and is same as the initial stages which can cause and drastic
plunge as the environment goes hostile because of new entrants.
8. Recommendations
The Amazon Inc is one of the most customer centric and renowned organization
the world and even though Amazon has been able to grow at an attractive pace
the future is dynamic and require proper strategic planning
1. Reengineering the utilised business plan for an optimized and modernized plan
2. Do no over diversify towards new products and services
3. Expand the territory but towards potential area
4. Ward off declining parts of organization
5. Simplification is key to growth