BUSINESS MODEL FOR FLIPKART: Flipkart is an e-commerce portal, B2C shopping Portal, for Indian customers or at-the-moment, customers ordering the goods for delivering in India. The model here is : Portal > List Sellers who sell the desired portfolio products > Get customers browsing through the products > Create appealing discounts > Customer Shops for the desired products > Seller / Flipkart ships the product to customer > Product Accepted and Not returned back > Seller gets his agreed price of the product minus the commission charged by FlipKart for doing everything they do. Thus the core bread and butter of the Model is “X% commission on the total sale value given to the seller” The sale can happen with the help of multiple channels as …show more content…
The Kindle and Kindle Fire are good examples Amazon Fresh - which sells and delivers groceries. Amazon Studios – an online social movie studio. Amazon Warehouse Deals – a discount warehouse on refurbished products. Buying Amazon has brought almost 30 companies in thirty years. One of their most recent buys, ComiXology. ComiXology offers a well-designed app for buying and reading comic books from more than 75 publishers. It makes it easy to see new comics, which sell for the same price as in store, and it's easy to buy back issues, too. There are also always comics on sale, including collections for a great price. Did you know that Amazon owns Zappos, Pet Supplies, Accessories and Products Online, and http://Diapers.com? All purchased to become part of the Amazon enterprise. Partnering They partner to offer their e-commerce services to make other companies better at on-line business. Sometimes it’s just providing the service, other times it is to combine products, like they have done with Toys Are Us. Rapid growth Amazon’s growth is a relative measure. Here are several comparisons that will surprise you. In the first 5 years of their existence, these are revenue
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Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.
Amazon.com was founded as an online bookstore in July, 1995 and went public in May 1997. In June, 1998 Amazon.com launched its music store. Since then Amazon.com has become the most prominent Internet retailer. Over time Amazon.com has added several products including electronics, health and beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several services such as auctions, 1-Click ordering, and zShops. Amazon.com has expanded nationally and internationally and now operates several customer service and distribution centers in the United States and international web sites that
As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).
Although it is the most established because of its long history and early start, competitors such as Alibaba Group Holding Ltd, AutoZone Inc., eBay Inc., Rakutenchi Inc., Netflix Inc., Jet.Com, Wal-Mart and Time Warner Cable among others exist (Yahoo Finance, 2015). Notably, apart from Jet.com, Amazon’s competitors are segmented according to products and services offered; for instance, Wal-Mart stores Inc. offers competition in general merchandise and electronics segment while eBay, Time Warner Cable and Apple offers competition in the media segment. Among the competitors, Apple Inc. and Google Inc. have the highest market capitalization; however, the Amazon’s dwarfs all other competitors. Amazon has a high market capitalization at $254.82 billion (Nassauer, 2015). The table below shows Amazon’s major competitors based on their market capitalization and 52-week share price range
Amazon is set to become the largest ecommerce in the World. In order for this to occur Amazon will have to experience growth outside of the US and Canada. Recently Amazon has launched a strategy to reach more markets outside the US. “It is a strategy that works and their numbers prove it. Within the last 9 years, Amazon’s international expansion strategy sky-rocketed their annual net revenue, revenue from other countries than its homeland (North America) hitting close to the 25% mark in terms of growth rate in the first quarter of 2016”
Amazon.com spends a substantial amount on Web advertising and marketing. The firm spent over $340,000 for the first half of the 1996 and ranked 34th in Web ad spending. Since then, however, these expenses have gone up significantly. Also, the firm invested much on their warehouse and state-of-the-art distribution center in New Castle, Delaware. Amazon.com turned its inventory 150 times a year. This make the firm have a lower cost structure than physical stores. Their marketing and operation cost kept the firm a deficit. By August 1996, sales were growing at 34 percent a month. The firm posted revenues of $147.8 million for 1997, an 838 percent increase over the previous year. However, the net loss for fiscal 1997 was 27.6 million, compared to a net loss in fiscal 1996 of $5.6 million. The firm claims to have exceeded expectations and has made its business plan more aggressive.
Amazon runs on four principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking” (https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm).
Amazon is the largest internet-based retailer in the world. This American electronic commerce and cloud computing company. Amazon stock logged a massive gain of 118%, last year in the stock market. Amazon was able to post more than $100 billion in sales last year. The fact is that the company has major competitive
In addition, meticulous efforts are directed at strengthening and expanding strategic alliances with third-party websites and content providers to attract users to its online stores. Marketing agreements with major Web portals and content sites, such as America Online ("AOL"), Microsoft and Lycos, have extended brand and consumer exposure to its online stores. Using the network of over 500 Barnes & Noble retail superstores and its relationship with Bertelsmann, one of the largest integrated media companies in the world, will help bn.com gain a significant advantage in cross-marketing and co-promotion programs, as well as, negotiating with online portals, distribution partners and media companies. Recently,
Amazon is a relatively small player in the bookstore industry, and its main competitors are Barnes & Noble and Borders. Despite the difference in scale, the company shows great promise, because its business model overcomes many of the competitors’ drawbacks.
Amazon has grown rapidly since their inception. The company experienced a surge is sales of 313% until 1998, supported by 8.4 million customer accounts in over 150 countries, of
Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.
The concept of the “NYOP” model is to allow the consumer to set the initial bid for the service, or product, they desire. The price can then increase based on the willingness of the consumer to haggle in order to get the good or service. The company, Priceline, first initiated the “Name Your Own Price” e-commerce business model. Priceline’s grown profit margins of $956 million in 2008 (Hinz, 2011), secured the acceptance and success of the “NYOP” model. Although, there is a high profit margin, the “NYOP” business model is limited to products such as the ones offered by Priceline. As described in our text, “it is unclear at this time if the Priceline business model can extend to other categories of products. Experiments to sell gasoline and groceries through Priceline failed” (Laudon &