Please answer the questions below! Make sure that you demonstrate your knowledge of terminology and content (your answers should be thorough and detailed). There are no specific format and page requirements. If you use outside sources, make sure to reference them properly. Your answers should be typed and saved in a word document and uploaded to the submission link that will appear under the Week 6 tab.
1- List and explain each of the business models that Amazon is currently utilizing. What is next for Amazon? (in terms of their future business model)
A model is an abstract conceptualization of something. In our case something is any business we can imagine. Business is a transaction between two systems.
For example: Between two companies or between to persons. One system offers a service to other system in exchange of a gratification. This exchange process can be called transaction. something to another. Mike an example gives apple to molly. Molly gives mike molly money for it. So they exchange apple vs money its that simple. The only problem is mike has no business as log as he not able to repeat the transaction properly. That's where the business model come in.
Business Model is the elements that describe organization's Goals, Strategies, Processes, Technology and Structure.
The list of model that Amazon is currently utilizing are as follows:
• Key Partners
Key partners describe the network of suppliers and partners to make the business model work. Amazons accomplishment are also thanks to its partnerships who can be divided into suppliers and manufactures, network of sellers, alliance with social networks in order to advertise publishers and niche contains providers.
• Key Activities
They describe the most important things a company must do to make its business model work. Amazon great success is based on the great performance of its web analysis. So we consider its development and maintenance as a creativity. It also stands out for its constant innovations bringing new products and services non stop or new ways of delivering such as the famous drones they are about to use for this purpose. The well working net of logistics and distribution is also fundamental analysis access.
• Key Resources
They describe most important assets required to make the businesses model work. On a physical point of view. They have a transit warehouse which allow a writer solution to On the human side the star resource is the web which is the pillar and it also includes the apps. On the intellectual side we must highlight the kindle platform.
• Value Proposition
Value propositions describe the bundle of product and services that create value for a specific customer segments. We must emphasis amazons wide range of products. Its availability, the price and the customer experience it offers. It allows customers and providers to go global in minutes. It offers speed, agility and elasticity.it allows non hit items and hit items to co-exist in a unique site Regarding kindle it offers a unique performance.
• Customer Relationship
Customer relationships are the types of relationship a company establishes with it's specific customer segments. Amazon is defined as automate services. This type of relationship makes it more sophisticated for customer self service with an automate process. As a customer he is the one to make his, her own purchase but the site suggests new possible purchases depending on the first. It also has an easy return policy of the product that's not satisfied customers needs and it provides trustful, clear and transparent treat.
• Customer Segment
These are the different group of people or organization and enterprise names. Amazon has big quantities of small niches, both customer, providers and developers. Concerning kindle, the customer segment can be identified as teenage, young-adult and adult readers.
• Distribution Channels
Channels are the way in which a company communicates with and reaches its customers segments to the labor of value proposition. Obliviously Amazon reaches it's many small niches through the internet using both amazon.com site and mobile apps available. Distributors are also the effective way to get to its millions customers all around the globe.
• Cost Structure
Cost Structure describes self cost incurred to operate a business model. Amazon has the low cost structure, most of their money is invested in platform development and maintenance which is the IT and fulfillment infrastructure. We must highlight the economy of scope. Amazon is able to use the technology developed for Internet selling books and another good to offer cloud computing services at competitive price.
• Revenue Streams
Revenue Stream represents the cash a company generates from its customer segments. We detect clear assets sales. It is most widely revenue stream the rights of selling ownership and rights of physical products. Amazon obtains its income from retail sales, The commission on reseller sales and prime monthly subscriptions. On the Kindle side we must underline the e-book and the content.
According to CNBC news Amazon is opening a new store that sells its item from the website which is rated 4 star and above. The company said in a vlog post on Wednesday following its aiccuqistions the whoel
Transaction happen in e commerce.
2- What is service dominant logic? How does it contribute to creating value for the customer?
Service is a process of using one's resources for another's benefit. It is a process not a unit of output. Goods are delivery mechanisms for service and customer are just an actor not an end user. Those that create value in their own right.
Service dominant logic is a mindset for unified understanding of the purpose and nature of organization of market and society.
The foundation proposition of SD logic is that organizations, markets and society are fundamentally concern with exchange of service. The application of competent such as:
• Knowledge and skills for benefit of the party.
• The service elements of a product offering are far better or more profitable than the goods or product element.
For example: Apple distributed good or product element, however the service element of iTunes is highly profitable for apple and it is the main revenue and profit generator, service dominant logistics is also two parties exchange services for a mutual benefit.
Value is always cocreated by a customer. A firm cannot decide its value. If a customer purchases a car, a car dosent have a value until an individual put it in their drive way and show it off or drive it or do something with it. Until and individual put it in use there is no value created its just a metal.
To cover the core of SD logic here are five axioms of service dominant logic:
1. The first is service is the fundamental basis of exchange its not goods. I will do something for you and you do something for me. It's a very simple motion. At times we do it through good but still its about the service not about the good.
2. Value is always cocreated and always involves the customer. Car doesn't have a value until an individual put it in their drive way and show it off or drive it or do something with it. Until and individual put it in use there is no value created its just a metal.
3. All economic and social actors are resource integrators. The other thing that we fundamentally do besides providing service to other people and get it in return. We get resources in the process and we create new resources.
4. Value is always uniquely and phenomenological determined by the beneficiary: Value has to be determined in relation to a particular actor/organizations etc. Its not just something that happens out there in the abstract and it happens holistically with lots of things coming together to a create a value not just one thing.
5. Value cocreation is coordinated through actor generated Institutions and Institutional arrangements.
Value is coordinated by institutional and insututiion are norms, rules, language, signs, symbols the shortcuts we use while communicating with each other coordinating activities.
Consumer gets resources from marketing facing, public and private sources.
Market facing is just face the money get it from the market.
We get resources from these three sources. We combine them to create new recourse or new combination of resources and use this resources to make our life better. We do something else we also use that resources as a currency to go back out and get access to new resources. Example:
Private resources are own abilities the peers, co students etc.
Public resources the road structure language etc.
From that we also Go back to get jobs, contribute to society and that exchange is ofcourse service .
So this simple one way linear model of goods logic producer and consumer where they become generic actor.
3- Identify two marketing elements that needs to be improved on a website that you refer to make purchases.
Marketing needs a plan to reach its objective and that is called marketing plan. Marketing plan leads to segmenting and targeting the market. Once these segments are identified marketing elements or mix helps the company to achieve its objectives. According to Neil H. Borden, “Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market.”
Here I am picking Binnance.com. A crypto currency exchange platform which gives users access to buy and sell crypto currency providing a robust set of trading tool, charts and security features.
The two marketing elements that needs to be improved on this website are:
Since Binance has been created it has collected a lot of revenue. However, it could do a lot better as Binnace hasn't fully utilized the power of advertisement. Binance could reach audience by advertising online via social medias, going to press, on TV, on radio even in billboards. They should also analyze their competitors' like Robinhood promotion process and get their message across their targeted market.
With everybody owning a mobile phone most of the people are slowly cutting the use of PC as people these days are used to having everything right on their fingertips. Moreover, most of the mobile time people spent on apps. This drastically effects Binance as it doesn't have a feature of mobile app to trade cryptos unlike its competitor Coinbase and Robinhood. They are missing a huge opportunity to direct communicate with their customers. Through push notifications Binance could directly interact with customer regarding their new coins and referral promotions.
4. Do you think that internet is useful for branding? Support your answer with examples.
Of course internet is useful for branding. Internet branding is basically a way of managing your brand using the internet as a medium to place it in the World Wide Web for marketing purposes.
Today in the age of digital marketing, when everything is online, internet branding is one of the most important tool to get more brand exposure thereby building strong online presence.
ν I think it's the fastest, cost efficient way to reach out to a bigger audience. It helps the brand to recognize its customer base and build a dialogue with the customers. Moreover, it helps to establish the brand identity that resonates with the current demand of the market.
ν That is the reason why we see many of the old school brands have moved today towards internet branding. They have recognized the importance of online branding and thus have explored various online platforms like social media (Instagram, Facebook, Twitter, YouTube) online press releases and even online market places (Amazon, eBay, Alibaba)
Another advantage of internet branding is the constant interaction with the customers which further helps the brand to stay relevant through out the years.
For instance, we can take an example of Kylie cosmetic owned by 21-year-old American Socialite Kylie Jenner, who generated 900 million US dollar worth of empire in few years. She achieved the ultimate goal by efficiently utilizing social media as a marketing tool. To the date she has 116Miliion followers on her Instagram.
In addition, all the advantages, there are also few disadvantages to internet branding. I think with an open network of online critics and trolls, there is a lot of negative reviews and even fake reviews that the brands have to deal with. But I think if the brand can properly navigate through it, even the negative reviews can be one of the aspects that can help a brand develop. A brand should always welcome constructive criticism and use it to improve the brand and meet customer's expectations.
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