PHASE 1 INDIVIDUAL PROJECT

Phase 1 Individual Project



Phase 1 Individual Project

When it comes to e-commerce, no other website can serve as the best example as that Amazon. Amazon.com is one aof athe aInternet's amost athrilling aand ainstructive astories. aCommenced ain aa agarage aby aJ. aBezos ain a1995, ait ahas asince adeveloped ato abecome athe aleading aInternet aretailer, awith athe atop alevels aof acustomer asatisfaction, athe ahighest aprofits agrowth arates, aand alastly, aafter anine ayears, aprofitable. aOne aof athe aweb a“Big aFour” afirms, aalong awith aeBay, aGoogle, aand aYahoo afew awould ahave adeliberated ait apossible awhen aAmazon afirst aopened afor abusiness athat aan aonline abookstore would become one of the premiere general retailers in the world. The company's business model has not been developed overnight but emerged as the consequence of series of developments. Initially the website emerged as the first online book retailing in 1995 and subsequently in 1995, it entered in to auctions and zshops. By 2000, they have completely developed a marketplace while also giving shape to network of partnerships and logistics services. In 2002, the company formally introduced Ecommerce platform/web services and later on, offered “eKindle” (eBooks) network to the customers. The business model of Amazon comprises of nine building blocks which includes customers segments, Revenue streams, cost structure, key resources, customer relationship, key partnerships, channels, key activities and finally value prepositions. The company is capturing value via transforming earnings into profits which is made possible by a blend of company's generative cycle, inventory turnover and capital efficiency. In a2001 aand a2002, aBezos aand afellow aexecutives abegan ato aimplement atheir astrategy afor aprofitability: acut aprices, aoffer afree ashipping, aand aleverage aAmazon's ainvestment ain ainfrastructure aand aconsumer abrands, awhile alowering acosts aof aoperation asignificantly. aBy aevolving aand aleveraging athe aexisting abusiness amodel, aAmazon ahoped ato ado awhat aanalysts athought awas aimpossible. aThe a“easy” apart aof athe astrategy awas adriving abusiness arevenues ahigher aby aoffering acustomers athe a“lowest apossible aprices” afor aa abroad arange aof agoods, aproviding afree ashipping afor aorders agreater athan a$25, aand athen amultiplying asources aof arevenue. aThe aAmazon astory ais aemblematic aof athe ae-commerce aenvironment aof athe apast aten ayears: aan aearly aperiod aof abusiness avision, ainspiration, aand aexperimentation, afollowed aby athe arealization athat aestablishing aa asuccessful abusiness amodel abased aon athose avisions awould anot abe aeasy, awhich athen aushered ain aa aperiod aof aretrenchment aand areevaluation, aultimately aleading ato aa amore afinely atuned abusiness ...