BUS 101: Business Creativity - Amazon Business Model Analysis Report

This report provides a comprehensive analysis of Amazon's business model, examining its diverse services, key performance indicators, and strategic frameworks. It delves into the Business Canvas Model, dissecting customer segments, revenue streams, cost structures, and key partnerships. The report also applies the Six Thinking Hats model to evaluate different perspectives. Furthermore, it assesses Amazon's strengths, weaknesses, opportunities, and threats (SWOT) and analyzes the political, economic, social, technological, legal, and environmental (PESTLE) factors influencing the company. The report concludes with recommendations for enhancing Amazon's e-commerce dominance and sustainable development, supported by relevant references.

B U S I N E S S C R E A T I V I T Y

AMAZON BUSINESS MODEL
• Amazon is well focused towards diverse services in order to have better business opportunities.
• Services and business model of company can classified into segments like:
I. Auctions and Zshops
II. Online Books
III. Partnerships and Logistics
IV. E-Commerce
V. E-books/Kindle

COMPANY OVERVIEW
• Mission: To advance technology and ensure that expertise employees are assisting to enhance customers
experience in shopping and other services.
• Vision: To become customers most preferable company
• Company is well focused towards four key measures which promotes business at impressive scale such as:
I. Relevance
II. Engagement
III. Convenience
IV. Community

BUSINESS CANVAS MODEL
Amazon’s business canvas model is mainly concerned about nine key factors. Classification of canvas model can be as:
• Customer Segment
• Revenue Stress
• Cost Structure
• Key Resources
• Customer Relationship
• Key Partnerships
• Channels
• Key Activities
• Value Proposition

SIX THINKING HATS
• In order have better understanding about the subject, consideration of six hat model is being taken into account.
I. Blue hat: Process
II. Green hat: Creativity
III. White hat: Facts
IV. Yellow hat: Benefits
V. Red hat: Feelings
VI. Black hat: Cautions

EVALUATION OF BUSINESS
MODEL
• Company is effectively concerned regarding business model structuring and ensure that better values are being
offered.
• Customer obsession and innovation in activities is key point that bring better satisfaction.
• Strategy to have better growth is also being designed with a motive of low cost, more profit and better
experience.
• For better success the company is also considering evolution of cash generative cycle, capital efficiency and
inventory turnover.

RECOMMENDATION
• Amazon must improve its focus on e-commerce dominance to gain competitive advantage.
• Company need to consider long term strategic entry values so that better opportunities can be attained.
• Analysis of competitors need to be consider during strategic formation for sustainable development.
• Customer security and protection need to be advanced in e-commerce.

JUSTIFICATION
• By considering measures the business firm can easily ensure about work conditions.
• It assist in improving business allocation practice and leads to sustainable development.
• Issues and customer engagement can be advanced in order to lead business to impressive level.

PESTLE
• Political: Changes in government policies regarding e-commerce and logistics might affect the business firm
development. Management need to consider political values critically in operations.
• Economic: UK economic conditions are stable which allows to have effective trading and ensure that goals and
objectives are being accomplished.
• Social: Customers needs must be evaluated in order to change the operations and values so that sustainable
development can be attained.
• Technological: Innovation in terms of technology use is being referred effectively. Barcode technology and
drone can be key examples of Amazon technology.
• Legal: Key values in terms of legislation and jurisdiction is being followed so that key outcome can be attained.
• Environmental: Standards in terms of safeguard and environment protection the CSR is being promoted.

SWOT
Elements Description
Strength • Best in class and ensure about customer needs
• Visionary management
Weakness • Need to leverage existing capabilities
• Net revenue is advanced but less profits
Opportunity • Expansion in multiple areas
• Online sales can be advanced with use of internet
Threat • Increase in complexity of online transaction model
• Pressure of shareholders and investors

REFERENCES
• Valkama, P., Bailey, S. and Anttiroiko, A. eds., 2013. Organizational innovation in public services: Forms and
governance. Springer.
• Staszowski, E., Brown, S. and Winter, B., 2013. Reflections on designing for social innovation in the public
sector: a case study in New York City. DESIS, p.27.
• Wegener, C. and Tanggaard, L., 2013. The concept of innovation as perceived by public sector frontline staff–
outline of a tripartite empirical model of innovation. Studies in Continuing Education. 35(1). pp.82-101.
• Bernier, L., Hafsi, T. and Deschamps, C., 2015. Environmental determinants of public sector innovation: a study
of innovation awards in Canada. Public Management Review. 17(6). pp.834-856.