Business Model of Amazon .

Running head: BUSINESS MODEL FOR AMAZON
Business Model of Amazon
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BUSINESS MODEL FOR AMAZON
Executive Summary:
The business models of companies play very important roles in their business. However,
multinational companies are under tremendous pressure to adopt new business models to
meet threats like data thefts. The paper shows the steps which Amazon can incorporate in its
new business model.
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BUSINESS MODEL FOR AMAZON
Table of Contents
Executive Summary:...................................................................................................................... 1
Part 1. Introduction:...................................................................................................................... 2
Part 1.1. Context of discussion:..................................................................................................... 2
Part 1.2. Aim of the report:............................................................................................................2
Part 2. Discussion:..........................................................................................................................3
Part 2.1. About Amazon:................................................................................................................3
Part 2.5.1. Social issues:.............................................................................................................6
Part 2.5.2. Legal issues:..............................................................................................................6
Part 3. Conclusion:.........................................................................................................................7
Part 4. Recommendations:............................................................................................................ 7
Part 4.1. Customer education:...................................................................................................7
Part 4.2. Third-party technological training:..............................................................................7
Part 4.3. Opening of more branches in new markets:...............................................................7
Part 5. References:.........................................................................................................................9
Part 6. Appendices:......................................................................................................................12
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BUSINESS MODEL FOR AMAZON
Part 1. Introduction:
Part 1.1. Context of discussion:
Amazon is undoubtedly the largest ecommerce company in the world operating in over
a hundred countries and selling a diverse range of products. The company sells goods at
affordable prices and has the ability to adjust its marketing strategy in accordance with the
market conditions in each of its host countries. The portals of Amazon are visible in the host
countries as per their specific needs like showing prices in the currencies of the respective host
countries rather than in USD. This portals of Amazon receive millions of orders and process
payments amounting to billions. The portals and the gateways of the American ecommerce
giant are not only sources of revenue for Amazon but also innumerable companies which
market their goods using the portals of the former. The companies which use Amazon portals
include small, medium and large multinational companies like Apple and P&G, the leaders in
their respective sectors (Amazon.com 2018). However, the portals of Amazon are always under
continuous threats from hackers and money laundering groups targeting the immense reserve
of customer data and revenue which circulate through Amazon portals (Abel 2018). These
illegal activities threaten the customer value creation process of Amazon besides causing
immense damage to the revenue generation and market goodwill of the company. The interim
report recommends outsourcing some of the operations of Amazon. However, it can be pointed
out that considering the immense business operations of Amazon and the impending data theft
as well as hacking threats, outsourcing would expose the company before the third party firms.
This would only add to the data and security risks to the company.
Part 1.2. Aim of the report:
The aim of the report would be proposing a new business model taking into account
four criteria namely, security threats, order-fulfilment procedure, electronic marketing or
emarketing and appropriate social as well as legal issues. The research would culminate into
making recommendations to the management of Amazon pertaining to the new business
model which the research would propose.
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