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Amazon. Case Study

In: Computers and Technology

Submitted By bims8
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A summary of Amazon’s business strategy and revenue model
I’ve used Amazon in my books for over 10 years now since many companies, from startups and small businesses to large international businesses, can learn from their focus on the customer and the approach of using technology and analysis to improve results. It consistently outperforms other companies in its ACSI customer satisfaction rating too.
I aim to keep the case study up-to-date for readers of the books and Smart Insights readers who may be interested. In it we look at Amazon’s background, revenue model and sources for the latest business results.
I recommend anyone studying Amazon checks the latest Amazon revenue and business strategies from their SEC filings / Investor relations. The annual filings to give a great summary of eBay business and revenue models.
A good summary of the latest business model initiatives is available in this Amazon annual report summary for 2011. For Q4, 2010: * North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.21 billion, up 45% from fourth quarter 2009. * International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and new Italian sites, were $5.74 billion, up 26% from fourth quarter 2009. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 29%.
Amazon has come a long way since it launched in 1995:
From:
and it’s offices…

to it’s current Seattle headquarters:

Amazon performs exceptionally efficiently measured against revenue per visitor, which is one of the key measures for any commercial website, whether it’s a media site, search engine, social network or a transactional retailer or offers travel or financial services. Of course profit per user would be quite different due to the significantly lower costs of...

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