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Amazon Introduction, Amazon Business model, What is Amazon

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  1. 1. By, Sagar Kale
  2. 2. Amazon Overview <ul><li>Founded in 1994; </li></ul><ul><ul><ul><li>Started selling books online </li></ul></ul></ul><ul><ul><ul><li>and now operate Web sites that offer various products and services, which include: music, DVDs, videos, electronics, camera and photography, clothing apparel, shoes, etc. </li></ul></ul></ul><ul><li>Features include: </li></ul><ul><ul><ul><li>one-click shopping, customer review and e-mail order verification. </li></ul></ul></ul><ul><li>The company is in coalition with other retailers and offer various new, refurbished, and used items in categories. </li></ul>
  3. 3. The Business Model <ul><li>The three operational strategies </li></ul><ul><li>Cost-leadership </li></ul><ul><ul><ul><li>differentiating itself primarily on the basis of price </li></ul></ul></ul><ul><ul><ul><li>offers the same quality products as other companies for a considerably less price </li></ul></ul></ul><ul><li>Customer differentiation </li></ul><ul><ul><ul><li>provides current and prospective customers with differentiation though design, quality or convenience </li></ul></ul></ul><ul><ul><ul><li>always selects a differentiator that is different among the competitor </li></ul></ul></ul><ul><li>Focus strategies </li></ul><ul><ul><ul><li>Apply one of the two strategies above to a niche within the market. </li></ul></ul></ul>
  4. 4. Revenue Models <ul><li>Subscription fees revenue model </li></ul><ul><li>Transaction fees revenue model </li></ul><ul><li>Advertising revenue model </li></ul><ul><li>Affiliate fees revenue model </li></ul>
  5. 5. Operating model as revenue generator
  6. 6. Thank you! <ul><li>Questions? </li></ul><ul><li>Comments? </li></ul>