Amazon business strategy

**Amazon's business strategy, revenue model and culture of metrics: a history****Business and revenue model**learning from sucess and failuresBusiness models are tested from a long term perspectiveContinuing to make investment decisions in light of long term marked leardershipInnovationsAmazon webservicesGrocery deliveryKinddle E-readersFire tabletSmartphone & TVEchoAmazon FashionAmazon prime**The importance of technology and increased focus on AI and Machine Learning**Some conventional software is not applied at amazonAmazon engineers need to find other means to focus on customerTechnology is very important to support focus on customerAmazon prime**Amazon customers**Premium serviceThree consumer setsDeveloper customersCustomersSeller customers**Strategy**Focusing on customer experiencekey featuresWedding and baby registersWishlistsSearch contents of booksSearching on amazon websites as well on the internet browsingSecure payment systemsWebpages tailored to individual preferences (recomendations and notifications)Customer servicesManufacturer product information1 click technologyImages uploadAbility to view selected interior pages and citationsOnline recomendations listsBuying guidesFullfilment promisesOptions for expedited deliveryLast inventory availability infoDelivery date estimatesOptions for expedited deliveryEach site is monitorizedPer minute revenue upper/lower bounds monitorizationSite availabilityStandart service availability monitoringDownload speedLow prices convenienceLowest prices are the most popular productsWide selection of merchandiseGoal is to achieveCustomer loyalityRepeated purchases**Amazon media sales**Amazon displays relevant Google text ads and banner ads from brands**From Auctions to marketplaces**Amazon auctions (ZShops)Need to compete with eBayStrategy has been adjusted to be described as an approach of low pricingAmazon makes greater margin on these sales since merchants are charged a commission on each sale and it is the merchant who bears the cost of storing inventory and fulfilling the product to customersAmazon is just facilitating the exchange of bits and bytes between buyers and sellers without the need to distribute physical products**Competition**Amazon views its main current and potential competitors asThe main competitive factors in its market segments includeCompanies that design, manufacture, market, or sell consumer electronics, telecommunication, and electronic devicesCompanies that provide fulfillment and logistics services for themselves or for third parties, whether online or offlineCompanies that provide e-commerce services, including website development, advertising, fulfillment, customer service, and payment processingOnline, offline, and multichannel retailers, publishers, vendors, distributors, manufacturers, and producers of the products we offer and sell to consumers and businessesPublishers, producers, and distributors of physical, digital, and interactive media of all types and all distribution channelsWeb search engines, comparison shopping websites, social networks, web portals, and other online and app-based means of discovering, using, or acquiring goods and services, either directly or in collaboration with other retailersCompanies that provide information technology services or products, including on- premises or cloud-based infrastructure and other servicesInformationAvailability and convenienceSelectionPriceDiscovery and brand recognitionPersonalized servicesAccessibility and customer serviceReliability and speed of fulfillmentEase of use and ability to adapt to changing conditions**Amazon's growth and business model evolution**Efficient performance against revenue per visitorKey measure for any customer websiteAmbitionTo offer Earth's biggest selection and most customer centric companyStill working to fullfill needs by innovating new solutions to make thingsmore cost effectiveeasierfasterAmazon have grown to include millions ofdevelopersenterprisescontent creatorssellersconsumers