Question

pick an entrepreneurial firm for example amazon, apple, google, provide details of its business model. Explain the young venture’s current situation, or its connection to a current entrepreneurship trend. MINIMUM 800 WORDS

Answer 1

Amazon’s success as world’s biggest online retailer isn’t a stroke of luck, but genius. A genius that one could easily see in some of the earliest decision of the company’s owner; Jeff Bezos, predicted to become the first trillionaire of the world. Talking of his genius decisions, you can go back in the time when he changed his company’s name from “Cadabra” to “Amazon”, when his lawyer misheard the first one for “Cadaver”.

Today, the online seller is the undisputed king, and sometimes one of the kings, in many fields. Among all its titles, here are a few that tell us what makes Amazon a force to reckon with:

1. It’s the 6th most prominent website on Internet,

2. It’s one of the five most valuable companies of world

3. It is the leading eCommerce in United States, with 136 billion U.S. dollars in 2016 net sales!

4. It is the eighth largest employer in the United States

5. It has acquired some big companies over time, Whole Foods Market being one of their recent purchases.

Amazon Business Model

The success of Amazon has been its diverse business model, which entails not or two, but many moving parts. A plethora of products are directly offered to customers through Amazon business model. All the products are offered for a very small markup by Amazon business model, and the company stores its products in an extensive network of stockrooms. Customers like and approach Amazon and Amazon business model with the belief that the company offers products on a reasonable prices. An add-on to Amazon business model is its retailers, that could easily list their products on Amazon’s website, and sell directly to purchasers. Amazon business model is also aided by it prime membership program, wherein the members pay a yearly fee of few dollars, in exchange of special discounts on various Amazon products. Amazon business model finds an additional source of generating revenue by selling Kindle, an e-reading device and mobile application.

Amazon Business Model Canvas

Amazon Business Model canvas here clarifies the key partners, , customer relationship, customer segment, key accomplices, key activities, value proposition cost structure and revenue streams of Amazon.

How does Amazon Business Model Affect its Revenue Model?

In an article named “Note on Business Model Analysis for the Entrepreneur”, there is much said about on steps that businesses and entrepreneurs should take when judging and identifying their business model. To quote, “In order to assess a potential business model, entrepreneurs must uncover the nature of its ‘profit engine’ which is often obscured by ambitious financial and market projections. Entrepreneurs must ask themselves whether their business concept can be translated into a viable, profitable business venture and how much cash it will take to achieve that result.”

There are 3 factors that are responsible for the growth Amazon business model.

The success of Amazon’s business model was not entirely dependent on factors listed above. During its early years, the company heavily relied on old school SEO and AdWords programs, and targeted hundreds and millions of keywords to become the success it is today.

Vision and Mission of Amazon Business Model

Amazon described its vision in 2008 as

“Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise.”

And now, the vision has now turned into a humongous version of itself with the company’s dream to become “Earth’s most customer-centric company”. and provide the biggest selection of customers. Repeated purchase and customers’ loyalty has been the key to the success of Amazon business model. Some of the key decisions that have proven to be an add-on to Amazon’s business model are:

A. providing easy-to-use functionalities to users,

B. listening to their customers very well.

C. providing feedback and review section on their app and website, so they can focus on complaints and demands of their customers.

D. free shipping policy on expensive purchases

Young venture's are currently struggling for their success and it requiers loyal customers and stable market in the era of high competion. they have to set attractive offers and discount for the customers and make their maket so that they can work properly.