Innovation Tactics

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Amazon Business Model: the Ultimate Overview

I have covered Amazon’s business model in 8 long reports. Now, it’s time for the ultimate summary (with lots of previously unreleased content on top). This is what we are going to look at today:

Online retail
– Fulfilment and delivery network
– Shopping experience
– Customer value proposition
Amazon devices: gateways to magic worlds
– Kindle
– Fire Tablet, Phone
– Fire TV and Prime Video
– Echo, Alexa and AI
– Business models: Kindle, Prime Video, Alexa
Amazon Web Services
Amazon Prime
Fundamental business model principles

As always, we are going to look behind the scenes to understand their business models, the economics, the strategies and what we can learn from it.

Amazon Business Model: Amazon Web Services

Amazon Web Services has become one of Amazon’s most significant offerings and business models. Netflix, a remarkable innovator in its own right, is fully hosted on AWS. Considering Netflix consumes 15% of global internet bandwidth as reported recently this shows the remarkable capabilities of AWS.

It is an almost impossible task to try write about Amazon Web Services (AWS) without being either unbelievable shallow or unbelievably geeky. The breadth and depth of AWS’s functionality is so extensive that even it experts start specialising on certain elements. As always, after a brief technical overview, I am going to focus on the business model aspects of AWS.

Amazon business model: Alexa, Echo

“Alexa, play Grand Tour!” If you always wanted to bark commands at someone without getting an angry response back, you might just love Alexa. Alexa is the smart assistant behind Amazon’s smart speaker Echo. But there are better reasons to use voice-controlled smart assistants than barking commands.

Amazon’s Alexa is similar to their the Kindle platform and the Prime Video platform in some respects and very different in other ones. And it is also different to Apple’s Siri and Google’s smart assistant.

Join me today to a tour through one of Amazon’s biggest bets and one that promises to change how humans interact with machines.

Amazon business model: Prime Video and Fire TV

While most people focus on the features of Amazon Fire TV and the related Prime Video platform, in reality, the intriguing elements are behind the scene. Last time, we have identified 10 business models for Amazon’s Kindle platform.

Today, we will see that Amazon Prime Video, too, has 10 business models with six having an equivalent in Amazon Kindle and four being different. My focus today will be on the Prime Video business models that are different to those of the Kindle platform.

Amazon business model [part 3]: the Kindle system and its 10 business models

The Kindle is generally described as an Amazon gadget that mainly generates revenues through its own sales and the sales of ebooks. But what if I told you that there are at least 10 business models enabled by the Kindle system. How many would you be able to list?

The Kindle is a much bigger endeavour than just a product. It is not only disrupting brick-and-mortar bookstores but also the publishing industry. And there is yet more. Amazon Kindle, Fire TV, Tablet, Echo and Alexa are gateways to something much more complex behind the screen. And they have a number of characteristics in common:

Focus areas

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