Virginia Rosales
Anabel Juárez
Jaime Millán
Vladimir Matović
October 2010
Business Models: Themes and Issues
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
Company Overview
Founded in 1994
in Seattle, USA
28,300
employees
Global leader in
e-commerce
Wide range of
products
World...
• ‘To leverage technology and the expertise of our invaluable employees to
provide our customers with the best shopping ex...
• ‘Not to discount a small number of products for a limited period of time, but
to offer low prices everyday and apply the...
Strategy
Source: www.amazon.com
Who want to
buy products
on Amazon
Who want to use
Amazon
developing
services
Who want to
sell products
on Amazon
Three Cu...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
How long do you stay @ ?
Attention attraction and retention
Customer’s needs
Relevant Content
Frequent Update
Buying habit...
How long do you stay @ ?
Stickiness
Holds customers and keeps them coming back for more!
Measurement: *Time spent at a web...
Products &
Services
Content
Interactivity &
Production Values
Personalization
Customization
Ownership &
Belonging
Co-Creation &
Recognition
2
3
4
Variety
5
Speed & Delivery
1
Easy
Navigation
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
Auctions & zShops
eBooks/Kindle
E-commerce
Platform/
Web Services
Marketplace
OnLine Book Retailing
Partherships
&
Logisti...
Business Model Canvas
9 building blocks
Customer
Segment (CS)
Cost
Structure(C$)
Customer
Relationship (CR)
Channels (CH)
...
MARKETING
TECHNOLOGY & CONTENT
FULFILMENT
SALES MARGINS
AUTOMATED
SERVICES & CO-
CREATION
(CUSTOMISED ONLINE
PROFILES &
RE...
eBooks/Kindle
>450 000 books
available for
download
Newspapers,
magazines and blogs
subscription
Amazon keeps 65% of
the r...
Capture Value:
transforming earnings into profits
Capital
efficiency
Inventory
turnover
Cash
generative
cycle
Maximize Pro...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
Source: www.amazon.com
Source: www.meettheboss.com
z
Worldwide Sales Mix
Q1 ’04 – Net Sales $5,710 MM
76%
Q4 ’09– Net Sales $24,509 MM
52%
22%
2% 3%
45%
WW Media (Books, Mus...
International Sales
$3,074
$6,740
$8,938
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
2004 20...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
- from A to Z
Company Overview
Mission, Vision & Values
Core Value Proposition, Objective & Strategy
Three Customer Sets
A...
Conclusion
Evolution
• Logical path
• Resources &
Channels
• B2C, B2B
Expansion
• New markets
• Strength of Brand
• “Earth...
Sky is the limit
Thank you!
References
• Websites:
– www.amazon.com
– www.youtube.com
– www.charlierose.com
– www.meettheboss.com
– SOLOMON D. 2009. Q...
Upcoming SlideShare
Loading in...5
×

Amazon Business Model

106,120

Published on

This was done as part of a coursework for the Business Model class at Heriot-Watt University.

It was used only in educational services.

I hope you enjoy it and learn something form it, because we certainly learned a lot.

Published in: Technology, Business
8 Comments
67 Likes
Statistics
Notes
No Downloads
Views
Total Views
106,120
On Slideshare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
5,274
Comments
8
Likes
67
Embeds 0
No embeds

No notes for slide
  • ASK IF WE SHOULD PUT THIRD PARTY SELLERS IN AUCTION AND Zshop MODEL AND MARKETPLACES AS PARTNERS AS WELL AS CUSTOMER

    Discuss about Bait & Hook model for Kindle/eBooks
  • managing both working capital and capital expenditures
    investments longer-term : hire additional software engineers, computer scientists, and me
    increasing operating income
    high inventory turnover: $480 million at year end on a sales base of nearly $7 billion
  • Consider Amazons corporate evolution: as soon as it established itself as a leading online book seller it began leveraging the platform and infrastructure it built to move into new categories, and in a matter of years became a full-fledged online department store and the webs premiere retailer. Amazon has also leveraged its online real estate and customer base, establishing itself as a broker of transactions and leaser of web space to other retailers. These profitable initiatives have generated synergies that fortify Amazons core business selling other merchants books, for example, vastly expands Amazons catalog, making the site ever more of a one-stop shop while contributing to the overall growth of the business.
  • Transcript of "Amazon Business Model"

    1. 1. Virginia Rosales Anabel Juárez Jaime Millán Vladimir Matović October 2010 Business Models: Themes and Issues
    2. 2. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    3. 3. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    4. 4. Company Overview Founded in 1994 in Seattle, USA 28,300 employees Global leader in e-commerce Wide range of products Worldwide network of fulfilment Mass customisation Customer experience Affiliations Stickiness
    5. 5. • ‘To leverage technology and the expertise of our invaluable employees to provide our customers with the best shopping experience on the Internet.’ Mission • ‘To be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.’ Vision • Customer Obsession • Innovation • Bias for Action • Ownership • High Hiring Bar • Frugality Values
    6. 6. • ‘Not to discount a small number of products for a limited period of time, but to offer low prices everyday and apply them broadly across our entire product range.’ Objective • Price • Convenience • Selection Core Value Proposition • ‘To ‘Get Big Fast’ by investing aggressively in new product categories and new businesses, by spending money on brand awareness and getting new customers.’ Strategy
    7. 7. Strategy Source: www.amazon.com
    8. 8. Who want to buy products on Amazon Who want to use Amazon developing services Who want to sell products on Amazon Three Customer Sets Consumers DevelopersSellers
    9. 9. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    10. 10. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    11. 11. How long do you stay @ ? Attention attraction and retention Customer’s needs Relevant Content Frequent Update Buying habits Reactions to Web site design Demographics Favorite and least favorite products HOW? GOAL: Brand Differentiation Customer Loyalty e-Trust Quality Value Timeliness Appropriateness of Goods & Services Business Reputation Security in Transactions
    12. 12. How long do you stay @ ? Stickiness Holds customers and keeps them coming back for more! Measurement: *Time spent at a website *Number of visits per person *Number of pages viewed
    13. 13. Products & Services Content
    14. 14. Interactivity & Production Values
    15. 15. Personalization Customization Ownership & Belonging Co-Creation & Recognition
    16. 16. 2 3 4 Variety 5 Speed & Delivery 1 Easy Navigation
    17. 17. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    18. 18. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    19. 19. Auctions & zShops eBooks/Kindle E-commerce Platform/ Web Services Marketplace OnLine Book Retailing Partherships & Logistic Services Business Model Evolution
    20. 20. Business Model Canvas 9 building blocks Customer Segment (CS) Cost Structure(C$) Customer Relationship (CR) Channels (CH) Revenue Streams (R$) Key Resources (KR) Key Partnerships (KP) Key Activities (KA) Value Proposition (VP)
    21. 21. MARKETING TECHNOLOGY & CONTENT FULFILMENT SALES MARGINS AUTOMATED SERVICES & CO- CREATION (CUSTOMISED ONLINE PROFILES & RECOMMENDATIONS) AMAZON.COM (& OVERSEAS SITES) AFFILIATES IT INFRASTRUCTURE, SOFTWARE & EXPERTS GLOBAL FULFILMENT INFRASTRUCTURE FULFILMENT & IT INFRASTRUCTURE DEVELOPMENT AND MAINTENANCE Business Model Canvas GLOBAL MARKET (SELLERS & CONSUMERS) INTERMEDIATION SERVICES COMMISSIONS SELLERS (COMPANIES & INDIVIDUALS)AGGREGATION OF DEMAND (LONGTAIL) FULFILMENT COMPANIES (ONLINE & TRADITIONAL RETAILERS) LOGISTICS NETWORK PARTNERSHIPS & ALLIANCES DEVELOPERS MASS-CUSTOMISED WEB SERVICES APIs PORTABLE DEVICE PRODUCT DEVELOPMENT, AND PROMOTION HARDWARE MANUFACTURERS GLOBAL MARKET (CONSUMERS) LOW PRICES CONVENIENCE WIDE SELECTION CUSTOMER EXPERIENCE LOGISTIC PARTNERS AFFILIATES (PUBLISHERS, AUTHORS, BOOKSTORES…) Online RetailingAuctions & zShopsMarketplacesPartnerships and Logistic Service ProviderE-commerce Platform/Web ServiceseBooks/Kindle COMPANIES (ONLINE & TRADITIONAL RETAILERS)
    22. 22. eBooks/Kindle >450 000 books available for download Newspapers, magazines and blogs subscription Amazon keeps 65% of the revenue from all eBook sales for Kindle eBooks downloaded from Amazon not exclusive to Kindle Kindle eBooks add 35% to a physical book’s sale on Amazon Amazon reported 80% of eBook market "Our vision is to have every book ever printed, in any language, all available in tinder 60 seconds.“ - Jeff Bezos, Amazon.com CEO
    23. 23. Capture Value: transforming earnings into profits Capital efficiency Inventory turnover Cash generative cycle Maximize Profit Dollars, Not Margins
    24. 24. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    25. 25. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    26. 26. Source: www.amazon.com
    27. 27. Source: www.meettheboss.com
    28. 28. z Worldwide Sales Mix Q1 ’04 – Net Sales $5,710 MM 76% Q4 ’09– Net Sales $24,509 MM 52% 22% 2% 3% 45% WW Media (Books, Music, Movies, Video Games and Consoles, Software and Digital Downloads) WW Electronics & Other General Merchendise (EGM) WW Other (Marketing and Promotional Activities, Amazon Web Services, Amazon Enterprise Solutions, & Co-branded Credit Cards) Source: www.amazon.com
    29. 29. International Sales $3,074 $6,740 $8,938 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 2004 2005 2006 2007 2008 MM • 2008 International sales 47% of WW sales, up from 45% in 2007 • Shipments to over 200 countries Source: www.amazon.com
    30. 30. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    31. 31. - from A to Z Company Overview Mission, Vision & Values Core Value Proposition, Objective & Strategy Three Customer Sets Attention Economy and e-Trust Business Model Amazon.com Business Model Evolution Business Model Canvas – The 9 Building Blocks eBook/Kindle Value Capture Diversifying Revenue Streams Geographical Expansion & Product Range Amazon.com Acquisitions and Investments Sales Conclusion Sky is the limit References
    32. 32. Conclusion Evolution • Logical path • Resources & Channels • B2C, B2B Expansion • New markets • Strength of Brand • “Earth’s biggest selection” Attention Economy • Community & Stickiness • Trust • Customer Experience
    33. 33. Sky is the limit
    34. 34. Thank you!
    35. 35. References • Websites: – www.amazon.com – www.youtube.com – www.charlierose.com – www.meettheboss.com – SOLOMON D. 2009. Questions for Jeffrey P. Bezos: Book Learning. Available at:http://www.nytimes.com/2009/12/06/magazine/06fob-q4- t.html " [22.10.2010]. • Articles: – 2006. From Niches to Riches: Anatomy of the Long Tail. MIT Sloan Management Review, 47, 67-71. – 2008. Amazon.com: The Brink of Bankruptcy. – ANTE, S. E. 2009. HOW AMAZON IS TURNING OPINIONS INTO GOLD. BusinessWeek, 047-048. – DAVENPORT, T. H. & BECK, J. C. 2000. GETTING the ATTENTION You Need. Harvard Business Review, 78, 118-126. – HOF, R. D. 2003. Reprogramming Amazon. BusinessWeek, 82-86. – KIRBY, J. & STEWART, T. A. 2007. The Institutional YES. (cover story). Harvard Business School Publication Corp. – MUDAMBI, S. M. & SCHUFF, D. 2010. WHAT MAKES A HELPFUL ONLINE REVIEW? A STUDY OF CUSTOMER REVIEWS ON AMAZON.COM. MIS Quarterly, 34, 185-200. – O'BRIEN, J. M. & SHAMBORA, J. 2009. AMAZON'S NEXT REVOLUTION. (cover story). Fortune, 159, 68-76. – PENENBERG, A. L. 2009. The Evolution of Amazon. (cover story). Fast Company, 66-74. – TONKERY, D. 2010. Amazon Versus Ebook Publishers. Searcher, 18, 41-43. – ZMUDA, N. 2009. AMAZON SAYS 'I DO' TO ZAPPOS. NOW WHAT? Advertising Age, 80, 4-4. • Books: – DAVENPORT, T. and BECK, J., 2001. The Attention Economy, Understanding the New Currency of Business. 1st ed. United States of America: Harvard Business School Press – DEMAIO, H., 2001. B2B and Beyond, New Business Models Built on Trust. 1st ed. United States of America: John Wiley & Sons – OSTERWALDER A. and PIGNEUR Y., 2010. Business Model Generation, Hoboken: John Wiley & Sons – SPECTOR, R., 2000. Amazon.com: Get Big Fast. London: Random House Business Books
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×