Amazon is currently utilizing a subscription as well as an open business model. More recently, the firm is aggressively diversifying its product portfolio with unknown repercussions. Due to this uncertainty, the board of directors has tasked you as head of business development to propose at least two alternative strategic paths. Each option should clearly detail the benefits of the business models, proposed competitive advantage; revenue streams; cost structure; value proposition and the intended market segment.
Students will be expected to analyse Amazon’s current business operations and strategy. Students SHOULD justify the arguments and narratives that they present. Should the firm consolidate its current portfolio before seeking to expand? Determine the medium to long term strategy and path to meaningful growth at Amazon
You are required to write a report that details the case for a comprehensive business model. The report should be 2500 words. You MAY attach a completed business model template in support of your report. Students MAY attach a 5-10 min video to support their narrative. Students are encouraged to use the models and strategies discussed in class-
⇒ A market analysis (who are the competitors, etc)
⇒ The industry the company works in
⇒ The individual firm; analyse past performance
⇒ Identify challenges in strategy, management structure, skills, communication internal or external, systems, operations, and performance financially
⇒Risk: current or potential
⇒ Shortfalls: efficiency (you can make profit but still fall short because of inefficiency) ⇒ if you invest 1milj but only a profit of 10000, it bears a risk that is too high. (Risk ratio) you can’t make revenue of 2milj and only a profit of 10000
⇒ Aspects identified in analysis
⇒ Impact of these challenges
⇒Other companies that have experienced the same issue.
Action plan ⇒ a phased plan OR
Scenarios ⇒ plan A B C OR
5) Conclusion⇒ summary of the entre report
Amazon is using two business models (subscription and business model) these are not the only 2 models but just the ones highlighted.
When did Amazon start introducing new and different products?
Related and unrelated diversification:
RD⇒ you produce or develop new products that are similar to your current product portfolio. Ex: coca cola produces fanta, orange juice, etc
URD⇒ producing products that are different from the main product. Ex: if coca cola would produce a laptop.
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