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Business Model Canvas

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Connect Value Propositions
Review

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Customers:
Value proposition - What is the job you get done for your customer?
Revenue streams - List your top 3 revenue streams
Channels - How do you communicate with your customer?
Customer relationships - Where do you maintain these relationships?
Key activities - What does your day-to-day look to keep your startup’s business model running?
Key resources - Human resources, financial, technology, processes; anything that you need to keep the business running
Key partners - Partners that help you keep the business running (excluding suppliers)
Cost structure - Costs derived from business activities and resources
Source: Strategyzer

Canvas Quadrant
Description
Canvas
Customer Segments
Household Consumer Clients
Household consumer
Require cloud services and infrastructure
Advertise on Amazon
Open
Retail Clients
Purchase products listed on Amazon
Purchase Amazon’s subscriptions services (Prime)
Open
Value proposition
Ecommerce
To provide an online shopping platform that quickly delivers any item, to any person, anywhere, at any time.
Open
Amazon Web Services
To provide cloud services, infrastructure, and data storage to business clients in an agile, flexible, scalable, and secure form.
Open
Revenue streams
Low margin revenue from retail e-commerce sales and fulfillment
Open
E-commerce and fulfillment are low-margin due to costs related to warehousing and upkeeping fulfillment centers
Open
High margin revenue streams from AWS, advertising, and subscription services
Open
Low upkeep and variable costs allow AWS, advertising, and subscription services to be the primary profit driver for Amazon, despite being a significantly smaller revenue stream
Open
Channels
Global distribution channels through shipping partners and fully streamlined fulfillment centers
Open
Enormous online marketing and advertising platforms
Open
Customer relationships
Best-in-class fulfillment systems allowing customers to receive their orders within 1-2 days
Open
Online/phone communication channels and built-in support channels on Amazon hardware
Open
“Customer-first” service mindset regardless of customer segment
Open
Key activities
Quick fulfillment processes
Open
Just-in-time delivery and shipping systems allowing for Amazon Prime to deliver orders within 1-2 days
Open
R&D to streamline and improve efficiency of fulfillment centers and other projects (e.g. Amazon Grab & Go store) to lower costs
Open
Key resources
Shipping services
Open
Warehouses and fulfillment centers
Open
Servers for AWS and cloud services
Open
Key partners
Shipping companies such as UPS, FedEx, and DHL which provide shipping services for Amazon’s fulfillment process to ensure timely arrival of products
Open
Major retail companies such as Nike, Best Buy, and Calvin Klein who want to increase their sales by selling on Amazon, consequently increasing Amazon’s market presence as well
Open
Cost structure
Cost-optimization strategy
Open
Comparatively lower costs for managing and upkeeping AWS servers
Open
Large investment and fixed costs from expanding Amazon Prime to international markets and building new fulfillment centers
Open
Well scaled and efficient fulfillment center and process allows for optimized costs
Open
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