Business Case Report: Amazon's Innovation & Commercialization Strategy

This business case report delves into Amazon's innovation and commercialization strategies, focusing on their drone delivery service. It examines the nature of innovation within the company, emphasizing the use of the commercial funnel and new product development (NPD) processes to bring this innovation to market. The report further evaluates various intellectual property rights, such as patents and trademarks, that Amazon can leverage to protect its knowledge and inventions. Additionally, it recommends different funding sources, including bank loans, angel investors, and family & friends, for financing the innovative product. The analysis concludes that Amazon should prioritize bank loans for funding due to their fixed interest rates and loan security, ensuring the successful implementation and protection of their drone delivery innovation.

Business Case report
Commercialization

INTRODUCTION
Innovation and commercialization very important terms for any organization to attain success in
the business (Hellwig, Pawlowski, and Schäfer, 2020). Innovation includes the process of
development of new ideas in the business to provide something unique to the customers and
commercialization includes a process to bring that innovation in the market. In order to satisfy
the customers in effective manner it is essential for an organization to identify their needs and
wants and bought innovation in their products and services. This business case contains the
innovation of Amazon Company in their delivery services. Amazon is a multinational
organization who has their focus on digital streaming artificial intelligence for cloud computing
and many more. Amazon is well known for their E-Commerce business in which they provide
fastest delivery. This business case report contains meaning and nature of innovation that has
been introduced by the company to achieve success in the market. In order to commercialize
reservation the company used commercial fusion and apply new product development process in
the company. Further it contains various intellectual property rights that can be used by the
company to protect and retain their knowledge invention and intellectual property with various
sources of funds which will help the company to introduce their innovative product.
MAIN BODY
Overview of the organization and meaning and nature of innovation in the company
Amazon.com is a multinational organization which is considered as one of the largest 5
companies of United States information technology industry (Wydra, 2020). The company has
created their brand image in the market with their E-Commerce business in which they deliver
videos kinds of products like mobile laptop swatches apparel shoes gift cards and many more to
their customers with benefits of free shipping and cash on delivery. The company has a vision
and mission which helps them to bought innovation in the company with that are given below
Vision: Amazon has a vision to become most customer-centric company on the earth.
Mission: The Company has a mission to offer the customers with the best available selection and
lowest possible prices of products and services.
In order to provide better services to the customer the company has researched that the compass
always wants fastest delivery of their products. in order to provide earliest delivery to the

customers the company has decided to deliver their products and services with the help of drones
facility (Cheah, and Ho, 2020). This is an innovative idea for the company which has not been
adopted by any of their competitors and will help them to gain competitive advantage in the
market. The innovation which has been decided by the company is drastic in nature and requires
a great change in the organization as the companies require to formulate a different department
for their drone delivery.
The use of Commercial funnel and application of new product development helps the business to
commercialize the innovation
Commercial funnel is a process which helps an organization to attract more and more cells so
that they can be able to enhance their profitability with the help of their innovation in the
company. Amazon has also taken seven steps from the process of commercial funnel that are
given below in the company for their profitability and growth.
Attract: In this step the company in white their customers taking in mind that the customer does
not have any idea about their drone services. They are engaged in marketing activities like
advertisement and many more to make the customers aware about the drone facilities that has to
be provided by them (Tirmizi, Malik, and Hussain, 2020).
Convert: In this step Amazon used effective strategies to make their customers reminder about
their products and services and uses emails and pop ups on regular basis to convert their changes
into visitors.
Close This stage includes Amazon to focus on their sales to increase it by providing some efforts
towards the needs of customers of getting fastest delivery.
Delight In this stage the customers of Amazon are seems to be happy with their services and
shows increase revenue for the company.
Application of NPD
Idea generation: In this stage Amazon Company generate idea for the purpose of solving query
of customers of fast delivery.

Idea screening: All the ideas that are provided by various individuals in the company are
required to be screened in order to select the best possible ideas identifying their benefits and
drawbacks.
Concept development and testing: After selecting the idea of Drone, Amazon is required to
work on the concept by testing the idea.
Marketing strategy development: After designing the idea of June Amazon is required to
formulate their marketing strategy so that they can engage in promotional activities.
Business analysis: In this stage Amazon is required to analyze the business they will get from
this new innovative product (Outterson, and Rex, 2020).
Product development: After analyzing the marketing strategy development and business
analysis the Amazon is required to develop the product now effective manner so that it can be
beneficial to fulfil the demands of the customers.
Test marketing: After development of product Amazon is required to test the drones either they
are useful to deliver their products or not.
Commercialization: When testing is done in this stage Amazon is required to engage and
commercialization activities so that they can on profits from their new innovative product.
Different methods to protect and retain the knowledge and intellectual property with advantages
and disadvantages
In order to protect and retain the knowledge innovation and intellectual property of an
individual and organization there are various rights that has been provided by government known
as intellectual property rights. Various kinds of intellectual property rights that can be used by
Amazon Company with their advantages and disadvantages are given below
Patent: Patent is a right which has been provided to the owner of the invention to protect their
invention from being stolen or used by any unauthorized person. The advantage of patent is that
it protects the interest of individual in new inventions whereas the disadvantage of the patent is it
limits the use of new invention in the market and requires a proper reminder of payment to
continue the patent.

Trade Mark: Trade mark refers to the mark logo for any signature of a business that has been
registered by the company under the trademark act to protect themselves from any kind of
imitation and fake products in the market. The biggest advantage of a trademark is that it
provides a unique Identity to a business so that customers can be able to identify the company
with their logo. The disadvantage of a trademark is the litigation process which can be display
expensive and uncertain in case of descriptive mark (Koepke, 2021).
Patent can be used by Amazon to protect their innovative idea of providing deliveries
with the help of drones and trademark of Amazon will help the company to protect them from
any kind of imitated products and services. Both the intellectual property rights are beneficial for
Amazon.
Recommend ways the organization can access funding for their innovative product.
Bank Loans: Amazon Company has an opportunity to consider the option of bank loans to
arrange points for their innovative ideas. Bank loan is a most secure type of loan which will help
the company to get desirable amount of funds at the needed time.
Anger Investors: Anchor investors are the person who provide money to the new business ideas
where they feel profitable and this innovative idea of Amazon will help the anger investors to get
more profits. In order to arrange points for the innovative idea of the company Amazon also has
an option to consider anger investors.
Family and Friends: Another source to arrange funds that has been available with Amazon
Company is the family and friends as less legal formalities are required to obtain funds in this
method to arrange points for the innovative idea of the company.
All the above sources of funds are beneficial for Amazon but in order to source finance for this
innovative idea of drone facilities to the customer the company has decided to take loan from the
bank as it is beneficial for the company due to its fixed rate of interest and security of loan easily
(Koepke, 2021).
CONCLUSION
The above discussion helps to conclude that innovation is an important process which needs to
be properly implemented by the company to stop Amazon wants to introduce drones delivery to

their customers in the market of United Kingdom which requires the company to follow
commercial final and apply new product development process in the company to commercialize
their innovation. In order to protect this innovation the company is required to take advantage of
various intellectual property rights. And Amazon chooses to take bank loans for the purpose of
funding this innovative product in the company.

REFERENCES
Books and Journal
Hellwig, L., Pawlowski, J. and Schäfer, M., 2020, June. An Innovation Activity Framework for
Digital Innovation. In Proceedings of the 2020 on Computers and People Research
Conference (pp. 10-19).
Wydra, S., 2020. Measuring innovation in the bioeconomy–Conceptual discussion and empirical
experiences. Technology in Society, 61, p.101242.
Cheah, S.L.Y. and Ho, Y.P., 2020. Effective industrial policy implementation for open
innovation: The role of government resources and capabilities. Technological
Forecasting and Social Change, 151, p.119845.
Tirmizi, S.M.A., Malik, Q.A. and Hussain, S.S., 2020. Invention and Open Innovation Processes,
and Linkages: A Conceptual Framework. Journal of Open Innovation: Technology,
Market, and Complexity, 6(4), p.159.
Outterson, K. and Rex, J.H., 2020. Evaluating for-profit public benefit corporations as an
additional structure for antibiotic development and commercialization. Translational
Research, 220, pp.182-190.
Koepke, M.E., 2021. Factors influencing the commercialization of inertial fusion
energy. Philosophical Transactions of the Royal Society A, 379(2189), p.20200020.