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Business organizations need to follow a business model that will be kept in front as a constant reminder of the objectives to be achieved and the methods to be followed for the attainment. A business without a business model is just like a missing backbone where the entire functioning of the business operations lay unstructured and relates an unorganized venture whose success is yet to be found. For understanding the importance of business models, the case study of Amazon can be taken into consideration that shows the fundamental reason for its overwhelming success. Amazon uses their business model as a tool for inspiration and innovation. The company has always focused on innovating and adding hoards of new categories for constantly changing the way of customers’ shopping by giving them the utmost range to select form.

The company follows a long-term growth policy as opposed to short-term profit margins as they believe in providing first and then receiving. In June 1994, Bezos founded Amazon as an online bookstore with limited editions available and finally launched it on 1995 with the motto of “sell all, carr few”. Gradually, with business strategies Bezos was able to expand his online e-commerce venture were it made a net sales profit of about US $15.7 million with a net loss of US $5.7 million (“Amazon.com's Business Model and its Evolution|Business Strategy|Case Study|Case Studies”, 2018). And the journey still continues till date emerging as one of the leading online e-commerce giants disrupting many potential business mediums.    

Problems in the company

Amazon’s business model has been based on four pillars- low prices, wide selection, convenience and customer service (“Amazon.com's Business Model and its Evolution|Business Strategy|Case Study|Case Studies”, 2018). The aim of the company was quite fixed from the time of its initiation process. Amazon emphasised on attracting customers through offering low prices and a prompt delivery service. In addition to this, the company kept on increasing its product category to provide a wide range of products and services for the customers and offer exemplary customer service. Catering the customers well and in a proper manner has always been Amazon’s prime concern. However, in this urge, the company takes the increasing market competition much lightly as they consider customer convenience to be their ultimate objective and based on that they are continuously expanding the Amazon retail (Teece, 2010).

Jeff Bezos himself has constantly maintained his point of customer obsession above of competitor obsession (“Amazon.com's Business Model and its Evolution|Business Strategy|Case Study|Case Studies”, 2018). In this process, Amazon is overlooking the importance of modifying their business model as per the latest needs of the business market. Moreover, disruptive innovation is a current necessity for both retail and e-commerce spaces that should be considered by Amazon. The changing business environment and the ever growing competition in the market necessitate the reinvention of the traditional business model to cope up with the present situation and avoid intentional losses (Jetter, Satzger & Neus, 2009). Customer-centric business model has definitely benefitted the company, but the approaches need to be changed for maximizing the net profit. Also, the wide scale growth of the company can bring challenges if not checked in time and deftly handle the impending position of being at stake.         

Impact on business

Amazon is in close competition with another of the big players, Walmart and many of the online retail industries. The company has gradually transformed itself from a start-up e-commerce venture to a powerful platform of digital media that extensively aimed at growth and innovation (“Amazon.com's Business Model and its Evolution|Business Strategy|Case Study|Case Studies”, 2018). Amazon has constantly tried to bring new developments in its business model by combining its online retail expertise with their ability to fulfill the preferences of the customers.

·         The company along with its executive staffs participated in Amazon’s growth wheel pledging by the motto of growing the prospects at the present and thinking about the profits later on. This is where the problems start.

·         The attempt of Amazon to expand its reach on the consumer base across the world started following an unstoppable demeanor that caused concern among the market analysts regarding the over ambitious growth rate of Amazon.

·         Their net loss percent is lower in most of the times than their net sales profit, but there is always an existence of a business strategy to backfire at point time that will bring down the rates to a marginal level or even lower than that.

·         So far the journey of Amazon is concerned the company is doing great on the foundation of their business model with the customer satisfaction and convenience at the center. It has even opened retail outlets as physical evidence to its customers.

·         However, the competitiveness of the market around is extremely capable of reaching heights set by others, thus, Amazon needs to pay attention of their strategic business model one more time.      

·         Amazon may be to close rival for an additional of the enormous players, Walmart and A large number of the internet retail commercial enterprises.

·         The organization need bit by bit converted itself starting with a start-up e-commerce dare on a capable stage from claiming advanced networking that extensively pointed in development What's more improvement (“Amazon. Com's business model What's more its Evolution|Business Strategy|Case Study|Case Studies”, 2018).

·         Amazon need continually attempted on bring new developments clinched alongside its business model Eventually Tom's perusing joining its web retail adroitness with their capability to satisfy those inclination of the clients.

·         The organization alongside its official staffs took an interest over Amazon’s development wheel pledging toward the witticism from claiming developing those prospects during the exhibit Furthermore considering something like those benefits later on.

·         This will be the place the issues begin. Those endeavor for Amazon to extend its arrive at on the customer base over the reality began Emulating an unstoppable air that created worry Around the business sector investigators viewing those again yearning development rate from claiming amazon.

·         Their net reduction percent will be easier clinched alongside the vast majority of the times over their net deals profit, Be that there will be dependably an presence from securing a benefits of the business technique to reverse discharge at perspective occasion when that will cut down those rates on a minor level alternately Actually easier over that (“Amazon. Com's business model What's more its Evolution|Business Strategy|Case Study|Case Studies”, 2018).

·         As such the venture from claiming amazon will be worried the organization will be completing extraordinary on the establishment about their benefits of the business model for the client fulfillment What's more comfort at the focus.

It need Significantly opened retail outlets Concerning illustration physical proof should its clients. However, those intensity of the market around will be greatly fit from claiming arriving at statures set by others, thus, amazon necessities on pay consideration of their vital business model you quit offering on that one a greater amount duration of the time.      


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