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  • 30 Mar 2022

  • 30 Mar 2022

Amazon: A Customer-Centric Business Model

Amazon marks its importance in being a vast Internet-based enterprise that sells books, music, movies, housewares, electronics, toys, and many other goods. It either sells directly or as the middleman between other retailers and the customers, and ultimately attracts the interest of the customers.

Mission, Vision, and Values

Amazon, mission, vision, values


The company is aligned with four principles - customer obsession instead of competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.

It marks its importance in being customer-centric. It means placing the interest of the customer at priority, and also at the center of everything. Being client-centric highlights their interest.

It shows its attributes in understanding the needs, wants, and interests, and ultimately building strong relationships with them. Any company always maintains the interest of the current customers, along with gaining new ones.

It brings benefits in hundredfold, and therefore builds a strong bond with them. It brings responsive and personalized services that focus on their growth, which would ultimately help in bringing the new ones.


The vision of the company is to be the most customer-centric company on the earth; where people come to find anything they might want to purchase. It increases their experience, ultimately fulfills their needs, and also shows the methods that help to improve the performance of the products.

It also improves all the processes used by the industry while interacting with them. This can be brought from the analysis which shows that the clients increase their license utilization. Giving priority to customers not only increases their value but also promotes new value, which keeps them satisfied all the time.

When the industries keep the consumers happy and satisfied, then they become brand ambassadors who spread the word about the business, which helps the industries to get new potential consumers.


Customer Obsession

The company takes the feedback and data of the customers whenever they come up with new features or services to develop. They work smartly and gain the trust of the customers. It deals with the interest of the customers, which keeps them engaged with the services.

It offers a delightful experience to the customers along with the services, which has maintained its place at the top in the market. It has created a chain that brings the attention of the customers towards it and delivers a more significant customer experience.

They work relentlessly to earn the trust of customers by achieving what customers expect. The company keeps the customers in priority with the business.


This is considered as a crucial value of a company, that focuses on its work. Their employees show their respect towards their work by focuses more on their work and completing it. It also takes ownership, solves the issues, and keeps the customers satisfied.

Invent and Simplify

Amazon keeps innovations as a priority. It always works smartly which improves innovative and creative thinking skills, and also enhances our productivity, and ultimately teaches time management skills.

It also helps to target new promotions, which target the most valuable customers to increase marketing efficiency and productivity. When productivity increases, it ultimately gives rise to a greater revenue system. The product always needs to be developed over time and consistently.

When any company deals with the interest of the people and provides support, then this ultimately results in improving productivity. It leads boosts up the creativity and interest in the business.


Amazon, founder

At the age of 30 years, the founder of Amazon Jeff Bezos started doing a street job, but he saw promise in the future of the internet economy and got an idea to build a bookstore at an online platform.

He decided to leave his job and take a risk and started a virtual bookstore in Seattle. He developed a site called Amazon in his garage with the help of a few employees.

Initially, Amazon was associated with an online bookstore and was competing with the local bookstores and Barnes and Nobles. Gradually, it expanded its services and included free super savers shipping.

He called the company as - Cadabra, but decided to start the name with A, and opted the name - Amazon as it symbolized the largest river on the planet.


Amazon, logo

The first logo of Amazon came into existence, in the year 1995. It was appealing, with proper typography, consisting of the bright-colored arrow, that was associated with a smile. It interpreted the name of the company, with a Blue background and the letter - A with a shape of a river inside, along with a caption to highlight the goals of the company, ultimately aiming to show that the brand is the Earths biggest bookstore.

It replaced its design in 1997 and was constructed in a well-constructed version that reflected the growth of the company. Immediately after one year, it again went into some changes and included the name Amazon, which showed its more elegant feature of it.

Between 1998-2000, it dropped its upper case and move towards the lower case version, and during 2000, it came up with a smiley face that starts from the letter A to the letter Z that ended with an arrow, which indicated that the company intends to serve its customers with all the products and services.

After going through many significant changes, finally the logo expanded with the digital world with no more limitations and highlighted the appealing design.

Business Model

Amazon, business model

The Early Years

The initial business model of selling books online was done at Amazon. Initially, the company used to witness a crowd of people, as the company was small. It used to sell Books in all 50 states and 45 countries, and it moved its steps to a wider extent, from CDs and music, and slowly, then all of a sudden to everything else.

Customers of Amazon

It has brought a platform, where buyers and sellers both can come together for selling and purchasing whatever they require. Customers across the world have a Prime subscription and pay for the services that they opt for. The Amazon Prime membership program offers special benefits.

For example, its photos provide unlimited full-resolution photo storage, and the audible premium plus benefits include unlimited access to thousands of audiobooks, podcasts, originals. The prime wardrobe gets seven days to try on the clothing and offers the benefit of getting charged of only those products that we keep.

Value Proposition of Amazon

It has value on competitive pricing, selection of goods, convenience, and fast fulfillment. The company marks its value in providing a safe, reliable, and well-stocked platform for shopping.

In order to boost sales during the holidays, it shows its attribute in holding Prime Day to kick start the holiday shopping season early, which is an annual shopping event that offers products at throwaway prices, promotions, and discounts.

It aims to serve its customers with a safe, and reliable platform for shopping. Its annual shopping events provide a way for the products at throwaway prices, promotions, and discounts.

Channel of Amazon

Its website operates as its largest channel and has 14 e-commerce sites worldwide that offer its products and marketplace products, which represents the business that would help to provide online visibility and discoverability as well as establish or enhance brand recognition.

If the industry has many backlinks from authoritative sites to ours, then this will provide credibility for the business. The company has also come with Mobile apps which mark its importance by allow users to have easy access to information, products, services, and processes, also essential for businesses.

Customer Relationships of Amazon

Amazon marks its attribute in creating fruitful relationships with its customers and focuses more on their requirements. As the customers always want something better, and always desires to delight them.

This boosts up their level of enthusiasm, and Amazon brings more relevant and reliable products in the market to keep the clients happy all the time.

All the actions, goals, projects, programs, and inventions at the firm begin and end with the customer in mind, which is a fundamental part of the business and the innovation process. It starts with customers and what they want and let that define and guide our efforts.

The main aim of Amazon is to promote its products directly to the target customers. It helps to increase the brand value and reputation of the product. It utilizes different ways to promote the products in the market.

This brings authenticity to the minds of people and builds up the trust within the market that traipse the attention of the maximum number of new clients. The business builds its roots in understanding the interest of the customers that establishes a bond between them. The strong build of trust between the business and its customers makes the deals more convenient and helpful.

Amazon is a brand that is heavily invested in the retention of its consumers. It has enjoyed a healthy and productive relationship with its customers for a long period. Some of their customer interactions take place with the reviews or comments shoppers can leave on their webpage. Amazon also offers customer service through phone, online chat, or email.

Key Activities of Amazon

The company marks its importance in merchandising of its digital and physical goods, development, design, and optimization of its Platform. It also manages the supply chain and logistics, ultimately secure and build a partnership with its supplier and sellers. The company also supports the production of movies or shows on its prime video platform.

Revenue Model

Amazon, revenue model

The company marks its primary source of revenue from its commissions and fees, which is obtained by making the borrowers and sellers meet. It provides a good marketplace by giving a guarantee of a standardized experience for both the buyers as well as the sellers.

It creates a source of revenue from the affiliate programs as well, by offering affiliates with stores and sites, and brings a large commission on their sales, and ultimately provides huge profit to the marketers and the business.

It also enables the sales advertising space on its website. The business world is competitive, and advertisements used to play a vital role in adding essence to brand identity, product, or service. It delivers the strategic message and uplifts awareness within the platform. Its site marks its importance in being one of the most visited pages. Hence, it brings a plethora of options for the sellers to boost sales by advertising. This is one of the crucial sources of revenue.

It gets another source of revenue from the kindle marketplace, which has developed and sold a device called Kindle. It marks its use in reading books in electronic format, and the eBook marketplace does not need to be published or transported and is highly profitable for Amazon.

It also generates its revenue model by bringing the subscription-based business models via its prime services. It is crucial and helps to escalate the revenue of the company in a hundredfold, as it provides faster delivery services, which always marks its importance traipsing the interest of more customers which leads them to gain memberships to purchase from the online stores.

It helps to bring income consistently, which brings more productivity to the company. Twitch Prime, Instant access to video streaming, free two-day shipping with Amazon Prime, Free unlimited photo storage, songs on Amazon Music with playlists and stations are some of the more prominent Amazon Prime Premium subscriptions offers.

[The images are being taken from the registered companies and belong to their respective owners only.]