Amazon Constantly Audits its Business Model

French professors Karan Girotra and Serguei Netessine have recently blogged about Amazon constantly editing their business model in the Harvard Business Review.
They basically explain how amazon went from a  “sell all, carry few” company to “sell all, carry a lot” one. They only had a handful of warehouses at the time but now due to growing demand they are about to spend 14 billion dollars to build about 50 warehousing facilities and take on the challenge of  “same day delivery” within the USA.

What I really liked about the blog is that how smart businesses like Amazon.com develop ways of constantly questioning what they do and they reconstruct their business model based on a regular basis as if it has an expiry date. Amazon teaches us that a company can’t afford to sentimentalize the icons of its past: it needs to be disciplined about challenging and breaking its existing business models.

Source

http://blogs.hbr.org/2013/11/amazon-constantly-audits-its-business-model/

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