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Amazon Prime Now seems to have been discussed widely near its launch. I personally believed that the standard Amazon Prime service was extremely rich and effective in its own, and have been extremely satisfied with its services. However, it seems like they have further developed the prime service, and now have a service called “Amazon Prime Now” – which delivers in approximately 2 hours at no cost for prime members, and at a cost of £6.99 for deliveries within an hour.

This is a big development in its business model, and further emphasizes its value proposition in providing goods at high services, at minimal time. Although not a change to the degree that it alters the business model completely, however I believe it is significant to the extent that we can label this a technological innovation, as it improves means in providing its service to patrons.

This will definitely be a strength for Amazon, as it is a very strong and effective point of difference other competitors fail to incorporate. This means that this implementation will act as a threat for competitors, and will greatly increase the barriers to entry for the delivery market – especially because prices on Amazon Prime Now are generally reasonable, “many which are similar to those of the same goods sold in retail stores, sometimes even lower”.

Although we are uninformed of the cost structure of this service, if the cost structure is reasonable, this is definitely an extremely strong move taken by Amazon that will greatly reduce competition for them. A great deal of customer segment are sure to enter the market with this change who seek for values in terms of high delivery speed. Because of the buzz this service has created, it can also be seen as a market strategy. In the modern era, “mouth of word” and “social curation” are such an important ways for a business to gain awareness. And the “buzz” created achieved this, therefore the move can also be seen as a marketing strategy that fits the modern market.

Main article: http://retailanalysis.igd.com/Hub.aspx?id=23&tid=3&nid=14035

Some information taken from: http://www.expressnews.com/lifestyle/article/My-Amazon-Prime-Now-experience-6619151.php