Four Boxes Business Model

 Four Bins Business Model Dissertation

Four Bins Business Model Amazon in 3 years ago (T2)

Consumer Value Task (promised consumer value)

-- Presenting the Kindle, CEO Jeff Bezos announced, " This isn't a tool, it's a service. ” -- Complete knowledge for the customer: an extensive library of books as well as the ability to download the book instantly using Amazon's wireless network -- The customer loved a cheaper ($9. 99 or less rather than $25 to get a hardcover), plus some would say better, reading experience without sacrificing breadth of book decision - Zero PC involved: shopping directly from the device and download an e-book over-the-air within you minute -- One regular format

-- E-ink for a more comfortable e-book experience and long lasting power supply - Costs for over-the-air data transmission included in full price in the book Earnings Formula (defines how the company creates value for itself) - To jump-start the e-book ecosystem, Amazon sacrificed its own e-book profits: Amazon online marketplace pays publisher 50 % of hardcover price ($25) and then provides it to get $9. 99 or fewer lost $2. 51 on each of your e-book marketed - Unfavorable markup compensated by very quickly inventory converts

- Strengthened the returning from its working capital and moved the cash flow from a seller-financed style to a buyer-financed one -- Amazon constructed much of the big difference in its sale of the $399 Kindle device (with an estimated margin of $200 every unit) -- Sales of e-books in 2007 about $10 million

Value is not only in profit in creating a large market share in e-books and readers (Unbalanced Scorecard?! ) Key Methods (people, technology, products, facilities, equipment and brand necessary to deliver the benefit proposition) - Weaker camera than Fiat: " Amazon kindle was larger than the [Sony] Reader, weighed more, and had an inferior screen” - Strong retail system and warehouse/distribution system (Key Assets) - Expansive library of literature and the capability to download the book quickly using Amazon's wireless network without joining the device into a PC - One...


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