How amazon become world largest e retailer in the world in just 6 years

1. In the name of Allah the most Beneficent the most Merciful

2. Evolving the Amazon.com Business
Model
Chapter no. 02

3. Outline
• Introduction
• 4 approaches to evolving business models
• Evolving the Amazon.com
• Product/service enhancement
• Product/services expansion
• Business model extension
• Exit
• Evolution continues
• Analysis the business Models

4. Introduction
• Evolving Business Model
• Networked businesses are built by artfully combining a variety of business
models.
• These businesses are then linked with others across multiple value chain
networks to "web for the web.“

5. Approaches to evolving a business model
• The four approaches to evolving a business model that are shown in serve as
a road map for evolving networked businesses.
• Enhance
• Extend
• Expand
• Exit

6. Approaches to evolving a business model

7. Evolving the Amazon.com

8. Product and service
Enhancements
• From the moment it launched its
online bookstore, Amazon.com
immediately began enhancing its
product/service offering and e-
retailing capabilities.
• 1-Click shopping
• Greeting cards

9. Product/Service Expansion
• Expanding into new product
categories:
• It launched music and DVD video.
• In mid-1998, becoming the number
one online music store within the
first quarter of the launch and the
number one DVD video store
within six weeks.

10. Business Model Extension
• In 1998, Amazon:com e~tended its
business model by launching'two
online auction stores.
• An online marketplace for small -
merchants (called Zshop)
• Entering into a number of equity
partnerships with brand-name
online retailers

11. Exit
• On August 30, 2000, Amazon.com partner 1iving.com
• living.com executives,announced their intention to seek an outright
liquidation. Rather than find another partners.
• Amazon.com shut the doors of its Home Living online store and exited the
product category
• redesigned
• its website to remove the "Home Living"

12. Evolution Continues
• In 2000, Amazon.com extended its model
• strategic alliance with ToysRus.com to create and operate a co-branded toy
and video game store, which was launched in fall 2000.
• With this move, Amazon.com adopted both marketplace and ASP business
models

13. Evolving Amazon.com: An Integrated View

14. Analysis the business Models
• The following steps can be used to help guide business model analysis.
1. Profile your current business models.
2. Determine how you might evolve your current model andlor identify new models
to pursue.
3. Use the business model analysis framework to prioritize new models and initiatives

15. Analysis the business Models
4. Develop real-time performance monitoring systems.
5. Revise your strategy, implementation plan, and performance measurement
systems on an ongoing basis.