Amazon is a worldwide sensation, a huge international corporation that once was just a small site for the resale of books. Such an active and successful development would not have been possible without well-planned management. The purpose of the essay is to analyze the electronic business model of the corporation.
A study of the success of a company begins with an idea embodied in a marketing plan. The essential task, in this case, is to study not only the offers of the company but also the consumers’ desires. Developing this direction and exploring what the consumer wants is a way to gain a competitive advantage (Aversa, et al., 2020). Amazon is operating on the Internet; therefore, it was necessary to develop a unique economic model, since the ordinary business plans might not work. In this case, the Amazon business model can be called integrative, since the design combines many elements from different approaches (Aversa, et al., 2020). Among all others, it is worth highlighting two fundamental factors in the corporation’s activities.
The network effect formed the basis of Amazon’s economy and became a guarantee of rapid development. It consists of the influence of the user on the value of the product to other people. The more people use a service, the more profitable it becomes concerning the price. Amazon began as a book company in a relatively small market. With the development of the corporation, book delivery and sales became progressively attractive, which ultimately led to the company’s expansion.
The one-stop-shop effect is the key to Amazon’s current activities, as it describes the corporation’s market position. The company, characterized by this factor, combines and offers the customer a vast range of solutions in one place. The corporation has expanded the list of services by creating new Internet platforms and providing content to network users (Wu & Gereffi, 2018). Thay allowed enticing the person further since it is much more convenient to buy everything in one place than to use a dozen different sites to purchase various things.
Thus, the Amazon business design is comprehensive, taking into account the needs of the Internet model and calculated from the user’s desire. Among the main factors on which the corporation is built, it is worth noting the network and one-stop-shop effects. They were modified to meet the client’s needs, and actively assisted for the benefit of the company, helping to attract customers.
Aversa, P., Haefliger, S., Hueller, F., & Reza, D. (2020). Customer complementarity in the digital space: Exploring Amazon’s business model diversification. Long Range Planning, 101985. Web.
Wu, X., & Gereffi, G. (2018). Amazon and Alibaba: Internet governance, business models, and internationalization strategies. In R. van Tulder, A. Verbeke, & L. Piscitello (Eds), International business in the information and digital age, (pp. 327-356). Emerald Publishing Limited. Web.