Business model innovation. Case Study: Effectiveness of e-commerce innovation model in Amazon company

Business Model Innovation
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Case Study: Effectiveness of e-commerce innovation model in Amazon company
Business Model Innovation
In today’s business world there exist many business models which explain how different companies perform their entire operations from production to delivery stage. A business model is a conceptual framework and a unique structure that explains how a company runs its operations, how the company generates money and also shows the plans which the company has put in place to help it achieve its goals. A business model supports the company’s product viability and highlights the processes which are involved in the production of the product before it reaches the final consumer. This product may either be goods or services.
A business model which a company adopts answers the following question; who is your target consumer, what additional value do you intend to create for the consumer to be satisfied and how you are planning to do it at a reasonable cost that will not exploit your customers. Thus, a business model will give an intensified description and justification on how the adopting company will create, deliver and add value to both itself and the customer (Christensen, Bartman & Van 2016, p.31). Due to technological advancements, different business models have come into existence. The invention of personal computers has led to a greater revolution in the business sector. This invention of personal computers has made people to model and test different business models. Every existing business model that exists has three significant parts which expound on; every activity related to the design and manufacturing of a product, the processes involved in the selling of the product ranging from finding the right customer and consumer of the product to distribution process of the product, and lastly the payment processes that the customer will use when paying for the product (Christensen, Bartman & Van 2016, p.31). Business models usually follow the trial and error principles and a design prototype testing procedure before they come into existence. Different business model types exist in the business world. These business models include; manufacturer business model, retailer model, distributor model, franchise model, brick-and-mortar, brick-and-clicks, e-commerce business model, nickel-and-dime and freemium business models.
A company which carries out online marketing such as is very crucial in business model innovation. Such strategy encourages the development of other integrated business models to provide and capture the overall sense of good and services. An e-commerce oriented company will increase the chances of model innovation (Linder & Williander 2017, p.182). Due to technological evolution, elec...