Examples Of Business Model For Flipkart

Amazon.com spends a substantial amount on Web advertising and marketing. The firm spent over $340,000 for the first half of the 1996 and ranked 34th in Web ad spending. Since then, however, these expenses have gone up significantly. Also, the firm invested much on their warehouse and state-of-the-art distribution center in New Castle, Delaware. Amazon.com turned its inventory 150 times a year. This make the firm have a lower cost structure than physical stores. Their marketing and operation cost kept the firm a deficit. By August 1996, sales were growing at 34 percent a month. The firm posted revenues of $147.8 million for 1997, an 838 percent increase over the previous year. However, the net loss for fiscal 1997 was 27.6 million, compared to a net loss in fiscal 1996 of $5.6 million. The firm claims to have exceeded expectations and has made its business plan more aggressive.

Mullaney, T. (2002). Amazon is all grown up, except for its accounting. Business Weekly, (3794)74. Retrieved 11/17/2005 from EBSCOhost database.

In addition, meticulous efforts are directed at strengthening and expanding strategic alliances with third-party websites and content providers to attract users to its online stores. Marketing agreements with major Web portals and content sites, such as America Online ("AOL"), Microsoft and Lycos, have extended brand and consumer exposure to its online stores. Using the network of over 500 Barnes & Noble retail superstores and its relationship with Bertelsmann, one of the largest integrated media companies in the world, will help bn.com gain a significant advantage in cross-marketing and co-promotion programs, as well as, negotiating with online portals, distribution partners and media companies. Recently,

Amazon.com is ranked number one out of the 'Top 25 U.S. E-commerce Retailers (ranked by annual sales) ' as of 2016 (Zaczkiewicz, p 1). Amazon ranks above many other e-commerce retailers, such as Wal-Mart, Apple, Staples, and Macy 's. The business model, customer value propositions, revenue model, marketspace, main competitors, comparative advantages, market strategy, management team, and organizational structure has helped Amazon to stay in business since 1996.

Amazon runs on four principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking” (https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm).

Amazon is the largest internet-based retailer in the world. This American electronic commerce and cloud computing company. Amazon stock logged a massive gain of 118%, last year in the stock market. Amazon was able to post more than $100 billion in sales last year. The fact is that the company has major competitive

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

The concept of the “NYOP” model is to allow the consumer to set the initial bid for the service, or product, they desire. The price can then increase based on the willingness of the consumer to haggle in order to get the good or service. The company, Priceline, first initiated the “Name Your Own Price” e-commerce business model. Priceline’s grown profit margins of $956 million in 2008 (Hinz, 2011), secured the acceptance and success of the “NYOP” model. Although, there is a high profit margin, the “NYOP” business model is limited to products such as the ones offered by Priceline. As described in our text, “it is unclear at this time if the Priceline business model can extend to other categories of products. Experiments to sell gasoline and groceries through Priceline failed” (Laudon &

Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.

However, Amazon compete with them very well. Also, due to wide variety of products, their competitors ranges from retailers, merchandise retailers, online internet retailers,etc. In the late 1990's it provide competition to the bookselling industry and forced Barnes & Noble to launch their online website. Barnes and Noble offers books, DVDs, and CDs, which directly competes with Amazon.com's media segment. Amazon.com competes against all competitors on selection, convenience, and customer experience as well as price. Barnes & Noble had not been successful in online business and they decided to partner with Amazon.com

Amazon is set to become the largest ecommerce in the World. In order for this to occur Amazon will have to experience growth outside of the US and Canada. Recently Amazon has launched a strategy to reach more markets outside the US. “It is a strategy that works and their numbers prove it. Within the last 9 years, Amazon’s international expansion strategy sky-rocketed their annual net revenue, revenue from other countries than its homeland (North America) hitting close to the 25% mark in terms of growth rate in the first quarter of 2016”

ABSTRACT: The Indian online customer’s shopping philosophy is hardly unique: we seek for the best deal available for the product of our choice. And the fight for the leading slot in the $3.1 billion industry has evolved into a two way tussle between Amazon and Flipkart. In our case we will study the e business strategy during festive season and the role of Information Management System in driving success. Retailers across the Indian market are aware of the fact that August – November is the festive time in our country. Consumers go berserk in these times. Buying patterns accentuate, everybody wants to get a piece of that sale Flipkart tried something unconventional when it launched its The Big Billion Day sale with great preparations however

Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.

Amazon is a relatively small player in the bookstore industry, and its main competitors are Barnes & Noble and Borders. Despite the difference in scale, the company shows great promise, because its business model overcomes many of the competitors’ drawbacks.

As previously mentioned, Amazon has a few of its own brands and products, one of the first being their e-reader, the