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Business Model for Amazon

In: Business and Management

Submitted By mgarcia107
Words 367
Pages 2
• Describe their business model and explain their supply chain strategy.
Amazon’s business model is based around customer satisfaction. Customers want three things, according to Bezos: the best selection, the lowest prices and the cheapest delivery. (Amazon, 2012) It strives to obtain efficient customer fulfillment, while cutting sales and operating costs. The company first began selling just books; today Amazon is known to be the biggest online retail store in world.
Amazon makes its profits from a few customer sets. The area they focus on the most is the consumers. They provide millions of products that can be purchased quickly and hassle free by the customers. They try to provide the best shopping experience possible for consumers. They have developed new tools such as recently viewed history, recommendations based on past purchases and one-click check out to improve the customer’s shopping experience.
Another area that is creating profits for the company is their services. Amazon has become a platform for others to sell and advertise their products. For a fee, Amazon will allow other companies and individuals to sell their products through Amazon’s website. They also provide fulfillment services, for those who want to store and ship their products through Amazon. A few years ago, Amazon began an IT infrastructure service to Developers called cloud computing. Today, this service powers hundreds of businesses in 190 countries.
Amazon has also introduced their product, the Kindle. Amazon provides a platform for independent publishers to publish books on the Kindle with 35 or 70% royalty.()
Amazon has designed a supply chain that has helped them become so successful. When Amazon was first established, the owner Jeff Bezos began to sell books from his garage. As the company began to grow, Bezos’ saw the need to develop a supply chain that would grow the…...

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