Amazon.com case study – 2018 update @Top 10 Digital Marketing Agency in Los Angeles

[Jack Reacher]

Amazon's business strategy, revenue model and culture of metrics: a history

I've used Amazon as a case study in my books for nearly 20 years now since I think all types of businesses can learn from their digital business strategy. From startups and small businesses to large international businesses, we can all learn from their focus on the customer, testing market opportunities made available by digital technology and their focus on testing and analysis to improve results.

 

I aim to keep this case study up-to-date for readers of the books Los Angeles Top 10 Digital Marketing Company and Smart Insights readers who may be interested. In it we look at Amazon's background, revenue model and sources for the latest business results.

 

We can also learn from their approach to digital marketing since they use digital marketing efficiently across all customer communications touchpoints in our RACE marketing planning framework:

 

Reach: Amazon's initial business growth based on detailed approach to SEO and AdWords targeting millions of keywords.

Act: Creating clear and simple experiences through testing and learning.

Convert: Using personalisation to make relevant recommendations and a clear checkout process that many now imitate.

Engage:

Their focus on customer experience, "Customer Obsession" as they call it  is shown by the way they consistently outperform other retailers in their ACSI customer satisfaction rating too. We have our own internal experimentation platform called “Weblab” that we use to evaluate improvements.

 

A short history of Amazon's growth and business model evolution

So how did Amazon grow to where it is today with turover of $135 billion? Amazon has come a long way since it launched in 1995:

 

From:

 

 

 

and these offices...

 

 

 

to its current Seattle headquarters:

 

 

 

Amazon performs exceptionally efficiently measured against revenue per visitor, which is one of the key measures for any commercial website, whether it's a media site, search engine, social network or a transactional retailer or offers travel or financial services. Of course profit per user would be quite different due to the significantly lower costs of other .coms like Facebook and Google.

Note: SEC is the Securities and Exchange Commission (SEC) which is a government agency for which companies have to submit an open evaluation of their business models and marketplace conditions.

 

Amazon.com mission and vision

When it first launched, Amazon’s had a clear and ambitious mission. To offer:

 

Earth’s biggest selection and to be Earth’s most customer-centric company.

 

Today, with business users of its Amazon Web Service representing a new type of customer, Amazon says:

 

this goal continues today, but Amazon’s customers are worldwide now and have grown to include millions of Con-sumers, Sellers, Content Creators, Developers, and Enterprises. Each of these groups has different needs, and we always work to meet those needs, by innovating new solutions to make things easier, faster, better, and more cost-effective.

 

20 years later, Amazon are still customer-centric, in fact, in the latest Amazon Annual report, Jeff Bezos of Amazon explains what he calls True Customer Obsession :

 

There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer fo-cus is by far the most important. Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf.

 

 

 

Amazon business and revenue model

I recommend anyone studying Amazon checks the latest Amazon revenue and business strategies from their SEC filings / Investor relations. The annual filings to give a great summary of eBay business and revenue models.

 

A good summary of the latest business model initiatives is always available in the latest Amazon annual report summary. Best SEO Digital Marketing Company in Los Angeles The latest report includes a great vision for Digital Agility (reprinted from 1997 in their latest annual report) showing testing of business models that many businesses don't yet have. Amazon explains:

 

"We will continue to measure our programs and the effectiveness of our investments analytically, to jettison those that do not provide acceptable returns, and to step up our investment in those that work best. We will continue to learn from both our successes and our failures".

Source  -  https://www.curvearro.com/digital-marketing-company-los-angeles/

[Elling Chowne]

It's good to use a famous company as a role model for your own business. You can learn really much from them. But I am sure that none of the big business can ever survive without job management software because otherwise the processes may become simply uncontrollable and this will affect the overall profits.

[Brian Terhune]

This is a very good case study of one of the biggest companies in the world. Thanks for sharing this with me. I was looking online for some business plan writers for hire when my friend suggested me to see OGS Capital. I checked them out and was impressed by the work they did previously. I would love to take their help to expand my business.