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Amazon Business Model Breakdown

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Richard Carver

on 28 September 2015

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Transcript of Amazon Business Model Breakdown

Amazon Business Model Breakdown
Overview/ Value Proposition
-Founded in 1995 by Jeff Bezos

-Bezo used paents personal savings to start Amazon

-Within two months, sales were at 20,000

-Became a publicly traded company in 1997

-Relies on being an incredibly convenient service that provides cost efficient products
Customer Channels
Fixed Cost Business
Customer Relations
- Full service customer relations department

-Assist with payment issues, troubel navigating through the site, and shipping details

-Crucial to Amazon as a business
Customer Segments
-Large demographic of individuals who purchase products

-16-30, 35- 50, 50-60

-Allows for wide variety of individuals to use Amazon

Revenue Channels
- Provides capability for individuals to purchase and sell products online

- Amazon retains a portion of the money as well as delivery fee that is used when purchasing a product, which is their largest revenue pool

-Incredibly cost efficient way for Amazon to turn a profit

-Customers are willing to pay whatever is convenient for them
Key Activities
-Sale of electronics, books, and other productsMedia Activites

-Marketing and advertising to a diverse demographic

-Giving away various coupons and promotional codes to customers

-Brand Value of Amazon is 175 billion dollars
Key Resources
-Internet accsss

-Computer developers and designers

-Amazon is able to gain leverage out of fixed asset and amount for the total ampount of profits from all the sales exceed its fixed cost base
-Internet access is largest customer channel

-Marketing and advertising through social media, incredibly cost efficient

-Television advertisements and commericls

-Advertising is targeted at several demographic groups
-Fixed costs and expenses that do not change

-Internet service rates, marketing, cost of sales, technology and content, general and administrative, etc.

-reinvesting cash flow and spending revenue the company earns on operating expenses

-Increased income operations to 4.5 billion dollars by adjusting expenses
Key Partnerships
-Individuals that use Amazon to sell and purchase products

-Warehouse managers that manage and store products
Richard Carver
Teresa Gregoy
Business Models of SAEM
September 27th, 2015
Full transcript