logo

Amazon's Business Model Innovation

   

Added on  2020-02-24

10 Pages2805 Words88 Views
Business DevelopmentData Science and Big DataWeb Development
 | 
 | 
 | 
1Running Head: FOUNDATIONS OF INFORMATION SYSTEMSFoundation of Information systemsStudent’s NameInstitution
Amazon's Business Model Innovation_1

2FOUNDATIONS OF INFORMATION SYSTEMSFoundation of Information systems1. Industry and company profilea. Background and history, products or services Amazon is an e-commerce company headquartered in Seattle that operates in different countries. It is distinguished as one of the first e-commerce companies which have contributed to the growth of e-commerce in the world. It was founded in 1994 by Jeff Bezos. The company started out as an online bookstore. In 1997, Amazon went public and diversified by adding other items such as electronic, video games, music, DVDs, etc. The company reported its first net profit during the fourth quarter of 2001. The company acquired various companies as its sales and profits continued to soar. In 2007, the company started manufacturing and selling its own branded electronics such as Kindle. It also launched Amazon web services to the public the following year. Since then, the company has made several acquisitions and has launched new initiatives aimed at expanding business operations and improve customer experience (Ritala, 2014). As of January 2017, Amazon was reported to have over 250,000 employees. Amazon is known for its innovations and contribution to e-commerce which has revolutionized the world. Amazon sells various products and services via its website and smartphones applications. Thecompany’s products include content provided by third-party sellers and those purchased for resale as well as merchandise (Kanto, 2015). The company also manufactures and sells various electronic devices such as televisions and Kindle. Through its subsidiary, it offers various organic and health food such as eggs, salmon, kale, lettuce, beef, almond butter, avocados, bananas, etc. Its operations are based on three segments: North America, Amazon web services, and International. North America segment involves sales of merchandise and subscriptions via North American websites such as www.amazon.ca. The international segment focuses on sales of products through international websites such as
Amazon's Business Model Innovation_2

3FOUNDATIONS OF INFORMATION SYSTEMSwww.amazon.co.jp, www.amazon.co.uk, etc. Amazon Web Services segment involves of AWS services to customers including government agencies and institutions (Cusumano, 2010). Amazon has leveraged technology to drive growth and enhance customer experience. Through its websites, third parties can sell their products. Many small businesses and individual sellers use the company’s platform to increase sales and reach new markets. Amazon’s technological innovations have enabled the company to tailor the shopping experience to each customer’s preferences. Its online platform offers various features such as book discovery, wish lists, 1-click shopping, among others that are designed to improve customer experience.b. Overall organization business strategyAmazon’s business strategy can be defined as diversification which involves leveraging technology to drive business growth and cost leadership strategy focusing on providing the best value to customers at the lowest price possible (Bharadwaj, 2013). The company’s strategy is customer oriented and underscores its aim to serve customers by providing a wide selection of products and prioritizing customers’ needs. The company focuses on using its technological capabilities to execute this strategy in terms of satisfying customers’ needs by offering low prices, wide selection, and improving convenience of the shopping experience. 2. Information Technology Strategya. Explain the IT strategy and how it served to achieve the organization businessstrategy. Amazon’s IT strategy involves leveraging emerging technologies and technological innovations to drive business growth and enhance customer experience. Through this strategy, the company has adopted innovation to enhance its operations (Amit, 2012). Since its inception, the company has come up with innovations such as information systems that
Amazon's Business Model Innovation_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Amazon's Rise to E-commerce Dominance
|11
|1281
|307

Industry Analysis of Amazon: Market Positioning, Global Presence, and Size
|9
|2591
|21

Assignment on Logistics and Supply Chain Management in Amazon
|15
|2492
|153

Company Analysis Assignment- Amazon
|26
|7392
|89

B2B E-Commerce Strategies and SWOT Analysis
|19
|4320
|156

Management Macro Environment Force analysis on Amazon
|12
|3075
|254