Business Model of Amazon

Essay, 2017

3 Pages, Grade: 8


Business Model of Amazon

Amazon is an e-commerce organization that sells various goods directly to its customers. It maintains a small markup which is a percentage of the product sold online. The company’s inventory is maintained in its large network of warehouses. Amazon also offers platform for several other retailers to market their products to potential buyers through their online platform (Magretta, 2010).

Business Strategy

Amazon’s corporate strategy is founded on its concentric products diversification. It is based on leveraging of technological capabilities for its business success (Stan, 2012). Amazon wraps its business its business around its global clients who find the platform as a convenient portal for their desired products and who wish them to be delivered to their doorsteps without much hustle (Magretta, 2010). Apart from offering retail goods, it recruits providers of various services from all parts of the country.

Internal Factors Influencing the Organization

Amazon’s strength has helped it to grow in the market. The company has established itself as a first mover with several repeat clients in the retail goods sector. Amazon has been ahead of competition because of its utilization of technology and its focus on continuously monitoring market trends (Magretta, 2010). It has also collaborated with other retail goods suppliers and other retailers to provide satisfactory services to its ever growing clients. Its website is customer-friendly, while its infrastructure of distribution centers is effective with (Stan, 2012)

Its weaknesses include its approach to diversify in many areas that it lacks well defined and shaped direction. It has not identified which industry or business they need to focus on. Its lack of various languages in its website indicates its lack of diversity (Stan, 2012).


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Business Model of Amazon
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business, model, amazon
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Harry Mwololo (Author), 2017, Business Model of Amazon, Munich, GRIN Verlag,


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