In a blogpost by Harvard Business Review, it is mentioned that Amazon constantly changes its business model according to the growth and demands of the customer.
- 1995- “sell all, carry few.”
- 2000- “sell all, carry more.”
- 2006- “Fulfillment” independent sellers can use Amazon’s warehouse
- 2013- Sunday Shipping and Deliveries in a few bigger American states.
As shown by the summarized timeline above, Amazon is constantly changing it’s business model so that the company isn’t outdated. I believe that it’s extremely to be aware of the market and it’s changes so that a company is always one step ahead, as Amazon did a good job of here.
Through constantly changing the business model, Amazon is able to create points of difference that sets itself apart from its competition, such as eBay, Target and various online shopping sites. As Dave Clark, Amazon’s VP of customer service and operations puts it, “What really drives the company — it’s all about selection growth, lower costs and increased speed.” Amazon’s implementation of Sunday Shipping is targeted to fulfill customer needs at higher efficiency and convenience with no increase in price.
Through adapting their business model, Amazon was able to successfully expand and increase value in the company shares.
http://blogs.hbr.org/2013/11/amazon-constantly-audits-its-business-model/