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Understand all the key drivers of our business with this business model canvas
Step 2: Map out business
Step 2: Map out business
Start filling out the business model canvas with your team
💡 Tips
1. Focus on the current state of your business (not the future).
2. Add only the most important drivers for each part of the canvas
3. The example canvas below is from . Clear the sample data →Clear Data
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Canvas Quadrant
Description
Added by
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Customer Segments
Business Clients
Retail Clients
Value proposition
Ecommerce
Amazon Web Services
Revenue streams
Low margin revenue from retail e-commerce sales and fulfillment
E-commerce and fulfillment are low-margin due to costs related to warehousing and upkeeping fulfillment centers
High margin revenue streams from AWS, advertising, and subscription services
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
Channels
Global distribution channels through shipping partners and fully streamlined fulfillment centers
Enormous online marketing and advertising platforms
Customer relationships
Best-in-class fulfillment systems allowing customers to receive their orders within 1-2 days
Online/phone communication channels and built-in support channels on Amazon hardware
“Customer-first” service mindset regardless of customer segment
Key activities
Quick fulfillment processes
Just-in-time delivery and shipping systems allowing for Amazon Prime to deliver orders within 1-2 days
R&D to streamline and improve efficiency of fulfillment centers and other projects (e.g. Amazon Grab & Go store) to lower costs
Key resources
Shipping services
Warehouses and fulfillment centers
Servers for AWS and cloud services
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
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
Cost structure
Cost-optimization strategy
Comparatively lower costs for managing and upkeeping AWS servers
Large investment and fixed costs from expanding Amazon Prime to international markets and building new fulfillment centers
Well scaled and efficient fulfillment center and process allows for optimized costs
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