Amazon Business & Revenue Model

Gupta
Mukul Kumar Gupta
Neha Virmani
Nikhil Poonia
Paridhi Garg
BUSINESS MODEL: E-TAILER
REVENUE MODEL: SALES
“Work Hard. Have Fun. Make History.”

5, 1994
Founded Headquarter
Seattle,
Washington,
U.S.
Area Served
Worldwide
Revenue
$280.522
billion
Website
www.amazon.com
Industry
• Cloud Computing
• E-commerce
• AI
• Consumer electronics
• Digital distribution
• Self-driving car

started his company from his garage in Bellevue,
Washington.
• Books were the only product available at that time.
• Bezos fulfilled and shipped orders to all 50 states, and to 48 countries.
• On May 15, 1997, the company went public.
• Time Magazine featured Jeffrey Bezos as Person of the Year in 1999,
calling him “king of cybercommerce.”
HISTORY

VALUE
MISSION
“We aim to be Earth’s most customer centric company.”
CULTURE
VALUES
At Amazon, we work with smart, passionate people who are building
new products and services every day on behalf of our customers.
• Customer Obsession
• Ownership
• Invent and Simplify
• Think Big
• Deliver Results

Centric
Company
Easy to read and
go for kindle
Anything you want
quickly delivered
Sell better and
more

database was used by the bookstore, customer service tools,
and fulfilment service tools
• This caused delays between development, testing, and release to
production

to Services Oriented Architecture
(SOA)
•Each functional domain got separated into
a separate service.
•These services provided to other services
through an API over the network.
•This made Amazon able to innovate quickly
and support millions of customers.

Will Durant said –
“ Operational excellence isn’t a list of things that you do or boxes you check but it’s
more of a habit — something you repeatedly do.”
OPERATIONAL EXCELLENCE
TOOLS
CULTURE
PROCESS

TOOLS
CULTURE PROCESS TOOLS
Amazon’s culture is probably
best understood by
examining the Leadership
Principles.
• Alliance with other retailers or
establishment
• Online inventories available
partner’s website
• Commission received on trading
with partner
• If a consumer purchases the
outside merchant’s goods
through Amazon, Amazon will
receive a commission.
• Segmented Pricing System
• Promotional Pricing System
• Online Support System
• Discount and Allowance
Pricing System
• Online Auction System
• Customer Relationship
Management System
Business Alliance System

Fast Delivery
• Vast Selection
• Convenience
• Low Price
• Seamless Payment
• Instant Fulfilment to E-readers
• Global Marketplace
• Amazon Brand Name
• Product Advertisement
• Timely Payment
• Shipments through FBA
• Customer Tracking
• Automated Warehouse
• Click Checkout
• Cloud Computing
• Oracle DNS
• Profits
• Brand Value
CUSTOMERS
SUPPLIERS
ORGANISATION
OWNERS

Government regulations
• Cyber Crime
• Aggressive competition
• Fake reviews
• Backward Integration
• More acquisitions
• Launch of electric rickshaws in India
• Expanding physical stores
• Self Driving Technology
• Easily imitable business model
• Product Flops and Failures
• Tax Avoidance Controversy
• Limited brick-and-mortar presence
• Declining consumer safety
• Strong brand name
• Customer oriented
• Go Global and Act Local strategy
• Large number of acquisitions
• Differentiation and innovation
• Large number of third party sellers

AIR
AI POWERED HOME ROBOTS
AMAZON GO
INNOVATIVE HEALTHCARE
UBIQUITOUS VOICE ASSISTANCE
2020 ACQUISITION TO BE