Case study amazon business model
From: Desmond B. D.
Category: techniques essay
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Amazon Case Study 1. What technology services does Amazon provide? What are the business advantages to Amazon and to subscribers of these services? What are the disadvantages to each? What kinds of businesses are likely to benefit from these services? With these two services, Amazon provides a pay-as-you-go model of computing.
How Amazon Adapted Its Business Model to India
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Even during the pandemic, the company continued to enjoy rapid growth mainly driven by the increased online shopping worldwide and a shift towards digital and cloud technologies that seems to be permanent. A shift towards digital and cloud technologies has also begun as businesses have started changing their operating models to cater to the changing demand pattern worldwide. While the US is the largest market for Amazon products and services , the firm has expanded worldwide and established a global sales and distribution network. Its global network is highly resilient, which became evident during the pandemic. Amazon has achieved the biggest competitive moat in e-retail. It is also using its strong bargaining power to strengthen its price advantage and beat both physical retail and e-commerce brands trying to compete with it.
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Business Management Case Study: Amazon's Business Model
It is often referred to as the online equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies. Amazon can leverage on several opportunities in the emerging markets and can ensure that its global supply chain of networked warehouses deliver substantial value for itself and its stakeholders. Further, Amazon has to rethink its business model of operating at close to zero margins and the fact that the company has not returned a decent profit in the last five years gives it much room for improvement. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company. Amazon primarily derives its competitive advantage from leveraging IT Information Technology and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors.
When Amazon decided to enter the Indian e-commerce market, it was clear from the outset that something would have to give. That something was the very business model that had made Amazon an internet powerhouse in the U. As the company added more titles and expanded its product line, it developed an ecosystem rooted in the wholesale purchase of goods; huge, strategically located fulfillment centers; and contracts with national and regional carriers who shipped its products throughout the U. A decade into the new millennium, India, with its billion-plus people and largely untapped e-commerce market, beckoned. The country posed a classic case of good news, bad news.