Amazon and its ever changing Business Model


In the HBR blogpost Amazon Constantly Audits its Business Model authors Karan Girotra and Serguei Netessine take the reader through the journey of Amazon and its ever evolving business models. How they started with limited inventory and drop-shipping for the non-inventory model and gradually moved to complete inventory based business, and logistics became a key component of their business model. It became their strength to the extent that they have started services based on their logistics.

Essence of this journey is that businesses have to keep evolving, keep building new strengths and playing around them. Do not get struck with the first success of the company and something that we in India called emotional attachment. Specially in the fields that are still evolving, that have no established proven models and actually no established consumption patterns as well, it makes no sense to assume a limited success as ultimate success.

Even for businesses that have established business models, they may be missing on a larger potential if they ignore the evolving environment in which the business exists and that is always so dynamic.

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  1. I would like to think that Amazon is merely leaving its touch – “the Amazon touch”, to whatever it does. As a company it hasn’t changed – whether it sells books or groceries, Amazon will just focus on “customer service”.

    Every organization has its own touch – and “transferable competencies” so to say. That way, transferable competency is more important than core competency for a business that wants to diversify for its growth.


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