Amazon is a tech giant that started its journey back in the 1990s with an online bookstore. Today, when eCommerce and personalized services are the trends every online business wants to make most of, Amazon is leading the way with its unique business model.
The Amazon store sells anything imaginable. This customer-centric company is what we are going to talk about today! So, let’s cut to the chase and understand what makes the Amazon business model so compelling in 2020.
What Is Amazon’s CEO Jeff Bezos Vision?
Before we go ahead and start discussing the different money-making strategies Amazon has in its business model, it is very important that we understand the visions on which its founder, Jeff Bezos, founded the company.
1. Customer Obsession
Amazon has a clear focus on only one thing – customer. Its customer-centric approach has really taken it beyond what all other Internet-based companies ever predicted about running an ecommerce company. Amazon is obsessed about the customer.
2. Adoption of External Trends
Amazon’s ability to stay flexible and adopt all major and minor profitable trends keeps it alive even when most companies are facing major setbacks. Bezos believes in thinking about the future and finds no reason as to why Amazon should fight the trends.
3. High-Velocity Decision Making
Making high-quality decisions is important to any business. Amazon takes it a little differently. It believes in taking high-quality decisions in a high velocity. It doesn’t use a one-size-fits-all process for making decisions and secondly, they don’t wait for 100% of the information before making the decisions. Bezos believe that most business decisions should be made with 70% of the information.
Understanding Amazon Business Model
Amazon has been growing ever since they arrived at the scene and has been a strong influencer in the ever-changing global marketplace. Its business model comprises of the following:
Amazon is a leading business when it comes to buying and selling on a large scale. Being an ecommerce company at heart, Amazon fits the description of the largest online retailer the world has ever seen.
Personalization is a major online trend that Amazon has used to build its empire to perfection. It provides personalized, customized services tailored to the needs and wants of each of its customers. Amazon tracks its customers online and achieves this feat by providing them with informative suggestions.
That’s right. Amazon has entered the B2B market as well with its gamut of services that can improve the productivity of your business operations. From warehouse, packaging, shipping, advertising, point of sale, to final delivery, Amazon can help you get things done.
Finally, Amazon has come up with a large cloud infrastructure that allows companies to store their information. It provides storage spaces to keep their data and also provides access to its Internet servers. Amazon is all in for giving its customers a superior computing power.
Over to You
Amazon is an elephant in tech. An elephant that can, well, run very fast. Amazon’s business model is unique and this makes it arguably the most powerful trendsetter in the tech business for over a decade. What else would you like us to write about Amazon? Let us know in the comments section!