In an article on his FourWeekMBA.com website, Gennaro Cuofano describes how Amazon seems to be gradually changing its business strategy and discusses the long-term vision and short-term sacrifice Amazon must embrace to have a successful transition.
Changing a business model isn’t a simple or linear process. Instead, that is a process that requires tinkering, experimentation and most of all long-term vision.
The Amazon revenue model analysis Gennaro provides (especially showing how their revenue model has changed over the past four years) is very interesting. Combined with some information on at least one area where Amazon is investing billions of dollars, he makes a fairly compelling case for the business strategy change he sees. What I find even more interesting is contemplating how similar principles might be applied to other ecommerce operations where hard goods are the dominant product line. Definitely food for thought in my day job.
Curated from: https://fourweekmba.com/amazon-case-study/