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The micro environment of Amazon.com using the Customer Value Funnel (CVF) Approach - Research Paper Example

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This paper analyses the micro environment of Amazon.com using the Customer Value Funnel (CVF) Approach. This approach is based on analyzing value delivery through collaboration, competition, suppliers and regulators (Weinstein, 2012). …
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The micro environment of Amazon.com using the Customer Value Funnel (CVF) Approach

Download file to see previous pages... Collaboration is concerned with how firms participate in the market through channel members and/or customers leading to the cocreation of value, strong supply chain relationships, partnerships and use of social media (Weinstein, 2012). Amazon.com is always seeking collaborative relationships to help grow its business, leading to the creation of customer value and market performance. According to Cimpanu (2009), Amazon collaborated with Target from 2001 where the latter’s e-commerce platform was managed by Amazon.com as it had the capability and experience to do so. This collaboration was however ended in 2011 after several lawsuits against Amazon. The company has also collaborated with some partners in the fashion industry. For instance, according to Vogue (2012), Amazon launched an exclusive collaboration with Meadham Kirchoff designers for a collection of sweatshirts. Still in the same industry, Amazon is collaborating with another designer for Derek Lam’s 10 Crosby contemporary line (Callahan, 2013). Amazon has also opened up collaboration with other entrepreneurs through its cloud system whereby other entrepreneurs can use it at a cost of 10 cents an hour and harness its computing capability (Tapscott and Williams, 2007). McConnell (2005) reports that Amazon launched ProductWiki which opened the door for citizen marketing as it allowed customer editable information. These collaborations has enabled Amazon to deliver value to customers by providing a variety of products at affordable costs and at their convenience. Customers can therefore find a wide variety of products from books to electronics to clothes, courtesy of the various collaborations that Amazon engages in with a number of partners. Competition Amazon.com faces competition from a number of quarters ...Download file to see next pagesRead More
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