Week 5 - activity: Amazon.

com
Amanuel Berhane M00865217
Kanishka Achrekar M00860129

2.Description of appropriate model in place for your organization

1. Identify the different e-commerce transaction models

2. Identify existing digital business models of the organization (revenue

models, digital tools)

3. Your suggestions (revenue)

AMANUEL BERHANE – M00865217

1.B2C (Business-to-consumer) (Business-to-consumer).

Direct sales to consumers are the focus of B2C companies. Every

purchase you make as a customer at an online store, from clothing and
home goods to entertainment, is a B2C transaction.

In particular for lower-value items, the decision-making process for a

business-to-consumer (B2C) transaction is much quicker than a
business-to-business (B2B) buy. Compared to their B2B counterparts,
B2C businesses often spend less on marketing while also having
shorter sales cycles, smaller average order values, and fewer repeat
business.

1. B2B (Business-to-business) (Business-to-business).

A business offers its good or service to another business in a B2B

business model. Although the buyer frequently resells to the consumer,
the buyer is occasionally the end user. In average, B2B transactions
have a longer sales cycle but bigger order values and more frequent
purchases.

2. B2B2C (Business-to-business-to-consumer) (Business-to-business-

to-consumer).

Business-to-Business-to-Consumer is referred to as B2B2C. It is a

business strategy in which a corporation partners with another
organization to offer its goods or services to final consumers.

3. B2G (Business-to-government) (Business-to-government).

Business-to-government (B2G) is an e-commerce model in which a

company offers and sells its products to public administrations or
government agencies, whether they be regional, county, state, or
federal.

4. C2B (Consumer-to-business) (Consumer-to-business).

C2B firms enable people to offer products and services to businesses.

In this e-commerce approach, a website might allow users to publish
the job they need done and request quotes from companies. Services
for affiliate marketing would also be categorized as C2B.

5. D2C (Direct-to-consumer) (Direct-to-consumer).

Without the assistance of outside wholesalers or internet retailers, a

direct-to-consumer business sells its own product to its final clients.

There is no intermediary between the customer and a business, unlike

other business models like B2B2C.

6. C2C (Consumer-to-consumer) (Consumer-to-consumer).

Online marketplaces and C2C ecommerce companies connect
customers to trade products and services, and they often recoup their
costs by charging transaction or listing fees.

C2C firms profit from the motivated customers and sellers who drive
their own growth, but they also confront significant challenges with
quality assurance and technological upkeep.

In the early years of the internet, companies like Craigslist, Walmart,

Alibaba, and eBay pioneered this strategy.

2 Amazon uses two types for its business models transaction through
its e commerce platform.

1 The linear business model which includes the directly sourced online
and physical stores

2 The platform business model is Amazons marketplace which opens

doors for retail third party seller services

Amazon's business model is noted for being varied. The corporation

reported net revenues of more than $280 billion and a net profit of
more than $11 billion in its annual report. Although the Amazon
business strategy is an e-commerce one, it has amassed a variety of
other business models and revenue sources through acquisitions over
the years. However, their online marketplace accounted for 50% of
revenues, which was the highest percentage.

The remainder is generated by advertising, physical stores, Amazon

AWS, app subscription services, services provided by third parties, and
so forth. A subscription-based program called Amazon Prime is crucial
to the company's economic strategy since it attracts more devoted
customers who are ready to pay more.

3. My suggestion to the company’s business model is even though

Amazon is gaining a revenue from loyalty subscriptions it can also add
the choice only for certain category at a lower price which can attract
more customers another point is that the product quality is not in your
hands which might make the organization pay extra for the product
certification/testing.

Amazon uses two types for its business models transaction through its
e commerce platform.

1 The linear business model which includes the directly sourced online
and physical stores

2 The platform business model is Amazons marketplace which opens

doors for retail third party seller services

Which in both case businesses sell directly to the consumer or the end
user which is business to consumer (B2C). Anything that is bought
online from amazon it could be clothing electronics and more is done
by this transaction model.

Kanishka Achrekar – M00860129

3. reflection on how the model is implemented and its

impact on the organisation
1. how to build a business model , identify the digital
disruptions
2. discuss the digital business maturity model, impact of
existing models on the organisation

1.Amazon brief history

After the name was decided, Bezos decision to be taken next was the
product to be sold on the e-commerce platform. Jeff Bezos decided that
selling books would be the most sensible move to take. Amazon.com
reached 180,000 accounts in its first year. in May 1997, amazon.com
became a public company, with $54 million,

At the end of the same year. The business quickly grew and started
offering toys, games, houseware, electronics, films, music, and more.
Additionally, its customized recommendation tools and user ratings
were what drew buyers, creating a consumer community. In 2000,
Amazon made it possible for small businesses and individuals to sell
their products on the website.

The launching of Amazon Web Services (AWS) two years later proved
what Bezos had insisted from the beginning: that Amazon was a
technological company rather than a retailer.

In 2007, Kindle e-readers first became available, boosting the e-book

market.
The business introduced Amazon Encore, its first publishing division, in
2009 so that people could also self-publish their own e-books. It would
change into Amazon Publishing two years later with the intention of
creating its own publications. Amazon transitioned from being a
bookseller to a "everything store" to a major force in global e-
commerce.

Every business deals with disruptions. And if you are a successful

company the chances of your business being disrupted or challenged
are higher.

 Standards are contagious

Jeff bezos believed that high standards are teachable but the the
opposite is also wuite true. When a company operates on low
standard, new employees often adjust to the work ethics
accordingly

 Set clear, realistic expectations

When there is a chance of raising your standards in a particular
area, The first course of action is to know what the quality looks in
that area and second is to set realistic goals for the business and
the team of employees
  Stay involved with the people you’re serving.
Jeff Bezos has claimed that he still reviews the emails in his public
inbox jeff@amazon.com to focus on what’s happening with
amazon customers. It’s always a good idea to make sure you
never lose touch with the people youre serving

2. the two existing business models that amazon is currently uses for their e-
commerce businesses

 The linear business model for those online stores and physical stores which are
directly sources
 Platform business model for the retail third party seller services (amazon
marketplace)

References question 3
Field, H. (2018) Jeff Bezos reveals 3 strategies for Amazon's success, Entrepreneur.
Entrepreneur. Available at: https://www.entrepreneur.com/business-news/jeff-bezos-
reveals-3-strategies-for-amazons-success/312374 (Accessed: November 9, 2022).

Furth, J.F. (2018) Why Amazon and Jeff Bezos are so successful at disruption, Entrepreneur.
Entrepreneur. Available at: https://www.entrepreneur.com/business-news/why-amazon-
and-jeff-bezos-are-so-successful-at-disruption/312481 (Accessed: November 9, 2022).

/entity/gennaro-Cuofano (2022) How amazon makes money: Amazon business model (2022
update), FourWeekMBA. What is The FourWeekMBA. Available at:
https://fourweekmba.com/amazon-business-model/ (Accessed: November 9, 2022).