Amazon Business Model Analysis

1. Primary Target-Market — main consuming group/Secondary Target-Market —additional sales potential Amazon’s target customers are people who have access to the internet and have financial paying tools such as credit card, debit card, paypal etc. futher, the firm’s clients do not stay within the united states only. Amazon has reached its hand to online customers in other continents. Further the company’s prime program seems to appeal more to older shoppers than the younger ones since data shows that individuals whose age 40 or more are more loyal to the service than people whose age is less than 40.

v) Entry by rivals Although rivals can enter the market of Amazon, the company has already reached the biggest global marketplace and there are many visitors to its website. b) Value chain model analysis Value chain refers to the activities which create value and competitive advantage for a company. For Amazon, these activities are shown in the model below; Amazon value chain model by Dudovskiy, J. (2017) Activity Explanation In-bound logistics Amazon uses the Fulfillment by Amazon (FBA) and takes responsibility for customer service, logistics and returns. Operations Amazon

Amazon is purely an online sales portal. Based on premium web rating organizations Amazon has a position ranging from 4 to 10 on a global ranking of premium websites. The presence of Amazon in the virtual world of internet is unquestionable. Big Data is a technology area which is highly talked about during the last several years. During the last 18 months, companies in the retail sector, manufacturing, construction, and technology areas have realized the extreme potential of Big Data and are trying to gain maximum advantage from it.

Support activities of Amazon include administrative and finance infrastructure; human resources management; product & technology development and procurement. This leads to less cost and more profit margins. The Walmart value chain is also almost the same except there are physical stores involved in between while Amazon has everything through online platform. Thus if we analyse the value chain is almost the same for Walmart, Amazon and eBay. Condiering the comeptetive forces anlaysis ofr all three : • Rivalry in the industry: This is fairly weaker; however Wal-Mart enjoys the topmost slot because of lowest cost, prices and more profits and market share as compared to Amazon and eBay.

Policy of Ad editorial changes. Many new competitors KEY STAKEHOLDERS AND PUBLICS Online marketing is one of the biggest industries in the world. Groupon and other competitors sell almost the same thing online; they have different types of stakeholders or publics. The stakeholders of Groupon will be identified. Enabling Stakeholders Groupon shareholders Board of directors elected officials investors Functional Stakeholders Employees Suppliers Customers Ad editorials Normative Stakeholders Competitors (e.g, Living Social & BuyWithMe).

As a matter of course, individuals purchase what they need on website alone. In any case, with regards to Amazon.com, their relationship advertising group has made it much simpler for clients to share their experience with friends and families alike. After clients make a purchase, they are given the choice to conveniently share their buy on social networking channel of their own choice, or send it by email. This not only works as a mode of free publicizing for them, yet the feedback they gather from clients after they make their purchases permits them to enhance their service

• Weaknesses and Threats (WT) – How can weaknesses be minimised and threats managed? Part IV: Concentric Diversification strategy This strategy uses their technology expertise, to create value being the ‘lowest cost, customer-centric, online market. This policy proved good as it helped organised their customers (B2B & B2C) as well as activities, securing their cash flows to crisis. But the huge investments for it can be risky, due to low profit margins and sales reduction can cause effects on cash flow or new technology investments. Conclusion Amazon.com has been strong and steady since its foundation.

Besides, the organisation is likewise one of the organisations that offers internet shopping services to their purchaser and the reason in the quick moving time, when individuals have restricted time to evaluate their life necessities, Tesco 's potential buyers utilise the organisation 's online administration and recovery their time 1.1. Management Functions within Organisation Handy’s Model of Organisational Culture Figure 1: Handy 's Organisational Culture Model Handy’s organisational model of culture helps the organisation to understand the internal culture within the organisation and understand the flow of power among the employees. It is observed that Tesco is among one of the organisations that deals in the international market however, it would be appropriate for the company to focus on their internal working structure so is to increase their work balance

At FCs, customers’ clicks transform into an order placements and eventually shipments via the assistance of employees and innovative technology. Amazon enforces its supply chain agility by stowing items in its inventory prior to customer demand, thus quickening product replenishment especially for the e-tailer’s grocery delivery service “AmazonFresh”. The company’s inventory is also stocked with products from third-party vendors. It essentially operates as a 3PL company through its “Fulfillment By Amazon” service (FBA) where Amazon stores, sells, and ships these items for outside sellers a commission fee. Once customers place orders on Amazon.com, “pickers” are informed of which specific items and subsequent barcodes to select the appropriate customer orders.

is an online retail organization that deals with a wide range of products such as electronics, books, magazines, foodstuff, house-ware, clothes, shoes, etc. The company’s position in the field of online business is attributed to strategies such as organizational culture, human resource and cost policies. 2 ×2 SWOT Matrix Helpful Harmful Strengths Weaknesses internal i. The minimum structure and cost strategy is the key to making maximum profits in the organization. In 2016, Amazon had the highest number of online sales in the world; its earnings stood at $130 billion.