Karan Girotra and Serguei Netessine’s blog post reveals that Amazon.com recently decided to start a new strategy: to offer same day delivery to most US addresses. Thus, the number of warehouses in the US is increasing. I think that it is a great example on how a company can achieve a lot more if they refine the business models to suit the present market. Although it took more money to build more warehouses, Amazon.com probably had more returns in revenue streams. The Fulfillment program by Amazon allowed independent sellers (smaller stores) to use Amazon’s warehouse networks to fill orders. Due to the new business model, the company became the wholesaler of goods sold by all these smaller stores.

Similarly, Nike has also changed its business model before. The company revolves around the idea of sustainability. The business model was once based on the premise of cheap access to an abundance of resources. However, as raw materials became scarcer, Nike’s business model had to change.  Nike changed its business model because the market forced them to. The company not only focused on improving products and services, but also emphasized importance on keeping the business modern. I think that companies that improve business models are smart as businesses always needs to keep up with modern trends and updated technology in order to be competitive in the market.

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Works Cited:

“HBR Blog Network.” Harvard Business Review. N.p., 15 Nov. 2013. Web. 17 Nov. 2013.

“Nike: Business Survival Means Smart, Sustainable Decisions.” SmartPlanet. N.p., 6 Nov. 2012. Web. 17 Nov. 2013.

Amazon.com. Digital image. N.p., n.d. Web. 16 Nov. 2013.