Amazon's Value Chain Analysis

1620 Words7 Pages
Value Chain Analysis In the 1990s, Amazon (Amazon.com) introduced a new business model for entrepreneurs choosing to use the Web as its place of business rather than the traditional brick and mortar companies. Amazon’s e-business and e-commerce business models generated significant revenue for the company and resulted in creating an effective and sustainable competitive advantage for the online retailer. “Amazon was one of the early movers to recognize the opportunity in both e-commerce and cloud computing infrastructure. Its superior technology infrastructure supported growth, and the company emerged as the market leader in both businesses (Pritanjali, 2015).” Today’s customers are evolving and demanding businesses adapt quickly in order to remain relevant. The digital business trend continues to grow and expand globally. Firms cannot afford to ignore this growing trend which is becoming increasingly more critical to their survival. Value chain analysis allows firms to review its production process to identify steps that can either be eliminated or improve capacity. Amazon is widely known for its effectual utilization of its value chain analysis. This paper will analyze Amazon’s value chain by reviewing both the demand and supply chain, value proposition, and enterprise value. Demand Chain Analysis From its inception in 1994, Amazon has grown from an online bookstore to operating retail websites offering a variety of products and services which includes merchandise
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