Innovation Of Amazon

Amazon was once an online bookseller was founded in 1994 and then launched their website in 1995. Since then it has diversified, now selling over forty product categories ranging from music, fashion, to groceries, cars and much more. It is now known as a world leading global marketplace, due to its media innovations of service, product, place, positioning and paradigm. 

 

Amazon have written on their website; “At Amazon, we believe that innovation has the power to change the world.’ (www.amazon.co.uk/com).This shows how much they value innovation and a deeper analysis into their business model will define this to the core.

In the year 2000 Amazon, launched its marketplace allowing third party sellers to sell and reference their products to Amazons namesake. This allowed for the long tail business model because it enables them to sell rare products at a lower cost. Amazon.com is a principal e-retailer and is a globally acknowledged brand, with a strong online presence. The internal and external analysis reveals that Amazon.com shows many strengths which outweigh the weaknesses. The longtail business model allows Amazon to be a real success.

The value chain can be broken down for Amazon in a simplistic way which has evolved over time through innovation. From the packaging to distribution each aspect has been improved to give the customer convenience. Amazon Prime allows faster delivery to the customers who pay an annual fee. 

See below slides for a brief view on business models, such as PEST analysis, Four P's analysis and Value Chains. 

 

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By Saima Omar