Unlike, retail companies, Amazon seldom hires stock clerks and floor managers. It is a mix of a retail company as well as a technology company.

While other stores are reeling under the massive cost burdens of stocking inventory, Amazon can afford to undercut the competition on this. Firstly, it has leveraged technology in such a way that it does not have to stock inventory of any kind. Amazon makes the lowest prices possible by leveraging technology. Their prices are so low that they have displaced Wal-Mart as being the leader is low price category! The amazing part about Amazon is that it provides goods and services at extremely low cost without compromising on quality by any means. They offer the most convenience, widest range and the lowest prices. The value proposition provided by Amazon is simple. If Amazon can grow even at half the speed that it aims it, it will be the worlds most valuable company in no time! As students of good business practice, it, therefore, makes sense to study the business model being used by this very innovative company. It is a fledgling company with a multi-billion dollar business. Startups have grown at this astounding pace earlier. It is targeting revenues of more than $500 billion in the next few years. Even though Amazon is already the worlds fifth-largest company, investors believe that it is only just getting started! It already has revenues of $125 billion per annum. Investors just cant seem to get enough of Amazon.

Business models