Amazon Smile Business Model and Critical Success Factors

Running head: NEW BUSINESS
New Business
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Table of Contents
Introduction.........................................................................................................................................3
Business Model....................................................................................................................................4
Building Blocks....................................................................................................................................4
1. Customer segments..................................................................................................................4
2. Customer Relationship............................................................................................................5
3. Key partners.............................................................................................................................5
4. Value proposition.....................................................................................................................5
6. Distribution channels...............................................................................................................5
7. Revenue streams......................................................................................................................6
8. Key resources...........................................................................................................................6
9. Cost structure...........................................................................................................................6
Interrelationships................................................................................................................................7
Critical success factors........................................................................................................................7
Down side risks....................................................................................................................................8
Business Model Changes.....................................................................................................................9
Conclusion............................................................................................................................................9
Recommendations................................................................................................................................9
Appendix 1...........................................................................................................................................10
Appendix 2.........................................................................................................................................11
References..........................................................................................................................................12
List of Tables
Table 1: Amazon SmileNumbers of stores worldwide....................................7
Table 2: Amazon Smile revenues and subscribers............................................7
Table 3 : Amazon SmileBusiness Model Canvas of Amazon Smile.....................11

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Table 4: Amazon Smile Performance comparatives and indicators.....................11

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Introduction
Amazon Smile is an e-commerce company was lauched in by Jeff Bezos in 2013 and
is headquartered in Seattle. The company seeks to provide an avenue where shoppers can get
discounted rates on whatever they purchase on the site and can still help in charity activities
(Agarwal & Wu, 2015). The company operate in an industry where there are dominant
players and stiff competition from companies such as Ebay. The company is an online retail
company that offers discounted prices on a wide variety of products that it offers to its
subscribers (Akter & Wamba, 2016). The company serves and was intended for online
shoppers around the world (Aversa et al., 2015).. Since its launch the company has managed
to become among the leading online selling platforms in the world beating seasoned
platforms such as Best Buy and Sears. Being an affiliate to Amazon.com , the company has
managed to gain track in profits.
Though there is competition in this industry, statistics show that the growth of e
commerce sales from 2014 to 2020 are expected to grow. The projections of e retail revenues
from 2017 to 2021 are projected to grow from 2.3 trillion US dollars to almost 5 trillion US
dollars . This means that this market has still a potential to grow and due to consumers
behavior who are starting to embrace online shopping Amazon Smile will still thrive in the
industry.