Amazon: Business Model, Growth, and Challenges Report

This report offers a comprehensive analysis of Amazon's organizational growth, business models, and global impact. It begins with an executive summary and an introduction to Amazon's position in the online retail industry, highlighting its customer-centric approach and expansion into various sectors like Amazon Web Services and Amazon Fire products. The report delves into Amazon's diverse business models, including Amazon Marketplace, Amazon Retail, Amazon Books, Amazon Web Services, Amazon Fire products, TV subscriptions, Amazon Music and Videos, Amazon Prime, Amazon Echo and Alexa, Amazon Gaming, and Amazon Patents. It then explores the benefits of Amazon's global operations, such as cultural adaptability, continuous innovation, and a strong organizational culture. The report also examines the technologies supporting its global presence, particularly Amazon Web Services. Finally, it addresses the challenges Amazon faces, including customer hostility, language barriers, and government disagreements, offering recommendations for improvement. The report concludes with a discussion of Amazon's competitive advantages and potential future directions.

Running head: AMAZON
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Name of the Student
Name of the University
Author Note

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Executive summary
The report mainly focus on the organisational growth of the Amazon. The report discuss the
brief description about the company. The companies’ journey in building the global image.
The achievement gained by the company and the challenges and risk that are faced in the
organisation. The report mainly focus on the recommendation that is done to improve the
organisation and the methods to implement the techniques in the organisation. The report
mainly focus on overall competitive advantage of the Amazon.

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Table of Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
AMAZON BUSINESS MODELS.............................................................................................4
The Possible Benefits That Company Might Have Gained By Operating Globally,.................7
The technology used to support a global position......................................................................8
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

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Introduction
Amazon is the major winner in the online retail industry, which mainly a B2C
company that share the biggest online market around the globe. The company has the annual
sale of the 100 billion dollars. It has the strength having customers over 350 countries
worldwide. The company is setting benchmarks and the increasing the progressing their way
in achieving the name among the company, which has the most customer-satisfied products
worldwide(Wong & Kerkez, 2016). The company is globally renowned to be employee
friendly, customer friendly and maintaining the good quality their delivered products. The
company sets its benchmark in sending the affordable yet best quality products that could be
purchased with all the classes of the society. Not only the retail has made a faster pace but
also the Amazon, the company have also achieved their name in Amazon web series. The
Amazon web series makes almost 10 billion dollars annually by providing cloud storage to
the people. The amazon retail and amazon web services has gained a lot of the customer
obsession and has set the highest benchmark in the global market.
Through the report, focus is kept on the organization’s business model. The report
mainly emphasize on the strategies that has brought the company has used to bring the
competitive advantage to the company. The possible productivity results that the company
have achieved in the recent years. The IT strategies that aided the way to the progress
exponentially to be the biggest Ecommerce giant. The possible challenges that is faced under
the company to reach its goal.
The company Amazon have provided their business goals by fulfilling their prime
objectives of being focus on the customer experiences by offering the customer the low price
convenience.

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Amazon Business Models
The company started out as a start-up for retail in 1995 and now holds the position of
the company with the highest revenues in the Silicon Valley. The company has exponentially
evolved in past 20 years. The company is pretty much has been sharing many services from
online market to web services to eBooks. The amazon have been achieving success in each
business model it has established among the people. The following business model are
running online and has generated the well-designed and independent revenue sources for the
company.
Amazon Marketplace: The company has been following the footprints of the Alibaba.com
following a marketplace model which collaborates with small, medium and large business
sectors collaborate with the Amazon that are showcased on their site for sale. Amazon are
either Fulfilled by the merchant (FMA), the FBM goods are stored under the third party
inventory and every action are look forward by the third party. The Amazon marketplace has
more than 70000 entrepreneurs selling their products on the Marketplace, which have
collectively increased numerous jobs in the case. While there are cases of the FBA ( fulfilled
by the Amazon ) in which the business dale their products to the company and the company
sell them on the site (Kaul et al. 2017)
Amazon retail: The business highest the varied products from electronics to clothing has an
online business store suiting everybody’s need accordingly. With the fast delivery and return
policy. The company had made its name in the trust if their customers. With the variety of
products that are sold online. The company has been earning an exponential amount of
revenue as well as the trust among people. The company makes the highest sale every year
regarding the sale than most of the B2c sites than any other company. The company share the

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market with the local market place, which build in connecting with different cultures at the
same time.
Amazon Books: the company is making money from the books and it is not limited to the
marketplace. The company has created a revolution by diversifying the wide range of the
books on the online site(Kaul,et al. 2017).The amazon have been sharing the EBooks, which
include amazon books, comixology, amazon publishing, and other services. The company has
been gained huge popularity when the company launched its notepad, Kindle. The company
has drawn the huge attention for the online readers to the site, which is one of the reason of
increasing the revenues for the company.
Amazon web services: the company is known to be the top infrastructure for information
providers in the Netflix. The Amazon web services has been securing the IT infrastructure of
the companies, which are renowned worldwide. Amazon web services provides the highly
reliable, scalable and cost effective infrastructure platform in the cloud that empowers for a
hundred of business and thousands of system round the globe
Amazon fire Products: the amazon fire stick is one of recent business models that have
been adapted by the organisation, which includes the wide range of TV shows for the
customer. The fire stick have launched a huge scope of connecting the portable device with
number of products online. The three parts of the computers developed by the Amazon are.
Kindle fire – it is the notepad developed by amazon to read books (Tan et al. 2017)
Fire phone- smartphone developed under the company in 2014.android based mobile
company produced by amazon in fire range of the products.
TV subscription:

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The fire stick is the flash drive connected through the Wi-Fi routers that enables the
numerous videos to stream on the television system by plugging them into the HDMI port of
the television or visual devices like laptop’s , monitors and phones . the portability and the
one-time payment per year option ease the user to watch their favourite channel by paying
just the subscription of the required channel or the website . The prime membership account
is not required to buy the fire stick just the channels or the sites subscription is paid for.
Amazon Music and Videos: the business model includes the online subscription of the wide
range of rated movies and TV shows online through which the company have been making a
huge amount of money and by including the star websites like IMBD and rotten tomatoes the
company has the added bonus of adding revenues.
Amazon Prime: the prime membership open people to large number of benefits to the
customer as well as the company has been in good names for the better services to the
customer as well as the company. With just few dollars a month. The company have opened a
wide range of benefits for their prime customer. Which includes
 Two day shipping with Amazon Prime
 Access to amazon video streaming
 Free download to two million songs
 30 min early access to Amazon Lighting Deals
Amazon Echo and Alexa:
The smart speaker echo, which is able to voice interaction, music playback, making to
do list, set alarms playing the audiobooks and providing weather information. The personal
assistant bots namely Alexa has been popular with the people using the echo in recent years
have given the company the huge benefits to the company (Narula & Jain,2015).

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Amazon Gaming:
The amazon owns the game studio, game developers based in the US. The company
has collaborate with the Reflexive entertainment and Double Helix Games after their
acquisition by amazon.com. The company has the own digital game distribution service
owned by Amazon.com. The games are highly popular worldwide and this is one of the way
of generating revenues for the company.
Amazon Patents:
Amazon have total 1263 Patents, which has been in the market for very long. The
company Amazon have provided the customer with the facilitation of the one click buying of
the patents they want to refer. All the patents reviewed are licensed and sold over the online
site like scholar pquest.
The Possible Benefits That Company Might Have Gained By Operating
Globally
Amazon is the online company, which has been growing itself since the last two
decades. Being a global E commerce giant. The company gains many benefits gaining the
biggest part of the global exposure in all the business models implemented by the company
(Narula & Jain ,2015),. Some of the possible benefits that the company achieved through the
company are as follows:
1. Adopting culture friendly environment: the company has been collaborating on the
organisation of the different countries. This had let the company to be the best retailer
company of 2017.

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2. Adopting continuous evolution: with upgrade in fashion and accessories, the company
has a wide range of the upgraded products. The company with the updated products
with over 20 million products to fulfil everyone’s needs.
3. Organisational culture: the company has been in also renowned for the employee
friendly environment, which help in building the bonds with organisation. the
company’s approach to treat the employees, enthusiast the youngster worldwide to
join the Amazon team .Amazon has been awarded for the” best environmental
friendly approach in the company”.
4. Innovation: The constant evolution in the innovation in the technology to bring new
products in the market with same technology in affordable price have promoted the
growth of the organisation (Wittig & Wittig, 2016). . The company has also won the
World Most Innovative Company of the 2017.
The technology used to support a global position
The Amazon have been a globally renowned customer friendly company that has the
fast and friendly upgrade technology that has attracted the maximum number of the customer.
The company has been highly supported by the technology of the web services. The Amazon
web services is the concise cloud-computing platform that is provided by the Amazon. Since
the company has variety of options available for the business models established by the
company. The web services introduce the pay as you go option (Varia & Mathew,2014). The
data centres of the company can spin up the virtual machine to provide a better infrastructure
to failures and entire data centre .this web service also look forward in improving the
security, monitoring and management of the services.

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Challenges that the company has faced or is currently facing because of
operating in a global society
The company has faced many challenges in the case of progress. The company has faced are
mainly:
1. Customer hostility
2. Language barriers
3. Disagreement from government issue
Being the E commerce giant, the company has faced many problems to widen their
business in few countries. One of the case noted that the Amazon was banned in China
because of the cultural barriers and stern towards the feeling of the local people in the
country. Amazon could not run in China since there was no collaboration government. The
company failed to connect with people and could not make the local employees of the china
comfortable in the company. Amazon loss a lot of money in the building the relation bringing
new products but could not be successful in China because of the locals could not find
anything in their need (Satyanarayanan, 2017). The customer support could not help in
solving people problem regarding the language barriers.
The company faced a little set back when the customer were complaining about unknowing
blocking from the Amazon services without notice for exploiting the return policy.
Recommendations
 The company can improve and widen their organisation by building a cultural
friendly organisational culture and hiring people from different culture background

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 The company must be highly updated with the new immersive technology that could
increase the user interface with the site
 The amazon can use language tools and framework for providing ease to people
having different language backgrounds and 24/7 assistance through chat bots.
Conclusion
The report mainly focuses on the business models and the strategies the global
ecommerce giant has been using to improve and progress exponentially globally. The
Amazon has the global reputation with the strength of customer‘s faith from over 350
countries. The business model represents the company-diversified fields and the company
ways of handling problems faced in the organisation. The report also discussed the possible
benefits and achievements the company have reached globally in the online market. The
report discuss that the journey of the success of Amazon has never been a cake walk, so the
challenges are focused in the case to showcase the challenges that have been faced by the
amazon in the online market and gaining the global exposure.

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Reference
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