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Business Model for Innovation Amazon.com

   

Added on  2021-04-17

14 Pages3349 Words429 Views
Business DevelopmentLeadership ManagementData Science and Big Data
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ManagementBusiness model for InnovationAmazon.com
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Table of Content:Introduction...........................................................................................................................................3Business Model Innovation...................................................................................................................4Models of Innovation........................................................................................................................4Incremental Innovation.................................................................................................................5Disruptive Innovation....................................................................................................................5Architectural Innovation................................................................................................................5Radical Innovation.........................................................................................................................6Significant Innovation at Amazon..........................................................................................................6Business model of Amazon................................................................................................................7Drone Delivery...................................................................................................................................7Business Diversification.....................................................................................................................8Amazon Web Services.......................................................................................................................8Amazon Prime Services.....................................................................................................................8Amazon Go Store...............................................................................................................................9Need for Innovation at Amazon..........................................................................................................10Recommendation for Amazon.............................................................................................................10Data Driven automation..................................................................................................................10Display Ads on website....................................................................................................................10Diversification of Business...............................................................................................................11Conclusion...........................................................................................................................................11
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References...........................................................................................................................................12IntroductionAmazon is one of the largest e-commerce companies which is changing the shopping landscape across the globe with its consistent innovation and practices. Amazon was founded in the year 1994 by one of the greatest visionary of all times Jeff Bezos, Jeff realized lacunae in the ways people shop online and decided to bridge the gap by introducing innovation in its business process (Mitchell & Coles, 2003). The company which was initially started as an online book store gradually started selling consumer durables, electronics, lifestyle products, DVD, home furnishing and what not, it wasjust a matter of time that Amazon was selling from anything to everything. Amazon presently employees over .3 million people and earned a revenue of 136 Billion in the year 2016. Amazon is one of the few companies which focus all its policies around the customer; most definitely it keeps consumer’s interest over anything. Amazon focuses on enriching the experience of its customers by delivering them amazing quality products on time. The company partners with few, but reliable vendors to strengthen its supply chain. Recently as a part of innovation Amazon has tested its drone services to expedite the delivery process and came up with one of its kind retail out which has no check in and check-out counters. It can be said with utmost certainty that Amazon takes innovation a notch higher than any of the players in the e-commerce industry (Amit & Zott, 2012)The purpose of the assignment here is to understand the business model of innovation for Amazon and how can it be further improvised and used for the benefit of the consumers. It is important to understand how Amazon brings innovation in its business processes and manages the same, a holistic picture of the business model innovation will help to understand the rationale and thinking
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behind Amazon’s consistent innovation process. It will be interesting to study what are some of the key innovations the company have introduced in the past and what it holds for the future.Business Model InnovationBusiness model innovation is the development of new and unique concept which supports an organization’s financial viability, encompassing the mission and the processes which will bring the unique concept to fruition (Utterback, 1994). The main objective of business model innovation is to find new sources of revenue by improving the value of the products and how the products are delivered to the customers. Business model innovation is a powerful concept which companies have started implementing in their business cycles, they are smart enough to understand that the market gets saturated after a certain point of time, thus Innovation is the only thing which can sustain their business momentum (Baumol, 2002). For the purpose of the study, four models of innovation will bestudied to have a better understating of the models:Models of InnovationTechnology and market are the most critical element of innovation model, hence the models will be analysed after dividing them into the dimension of technology and market.
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