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BusinessPartnership55.docx

Business Canvas Model (Amazon)

Key Partners

· There are five Delivery Personnel categories in Amazon, Packages, Prime Now, Locker Delivery, Merchant pickups and Restaurant delivery.

· Dashers are also available at amazon to deliver dasher products at destination of people.

Key Activities

· Amazon was initially an online bookselling store but later in the USA, it started selling consumer products, electronics, cloud and web services, and online selling of books, videos and music too.

· Amazon hires a lot of delivery persons and also delivers through mass fleet vehicles.

· Amazon is using technological, internet, web and cloud services.

· Amazon works for the best of its workers and different policies are made for their good compensation. So, the employees and drives stay with the company.

Value Proposition

· Customer is at the heart of the business value.

· Extended customer base is the revenue generation source.

· Amazon uses the business model of three customers value propositions which include low prices, fast delivery of the products and a wide range of products availability.

Customer Relationships

· Social Media usage and web services are widely used as well as the website of the business.

· Customer support is provided for the products. Refunds, exchanges and after sale services are common at amazon.

Customer Segments

· Customer base at amazon consists of all the categories.

· Customers who want doorstep deliveries are so many and they get delivered the products.

· Restaurants also order the online delivery of the products.

Key Resources

· Amazon has a lot of delivery employees.

· Restaurant Partnerships are so many.

· Technology Platforms are advanced and cloud and web services are used to connect with the customers and suppliers.

Channels

· Amazon has a mobile app.

· Mobile devices, computers, iPhone, androids and digital watches are the platforms where amazon app can work.

· It has an active website.

Cost Structure

· Fuel Expenditures have been cut down because of fleet and efficient routes.

· Technological setups and running costs are high but high revenues are enough to bear these costs and manage the IT infrastructure.

Revenue Streams

· Marketing programs are also used and these create revenues in the form of online orders of the customers.

· Branding programs are initiated and promoted through website and app.

Key Partners

· Delivery personnel in Zipline are the drone pilots who take away the medicinal supplies to the rural areas of Ghana and now will expand its services to Ghana and other areas (Bort & Chan, 2019).

· Dashers are available at Zipline and they travel along the drones to deliver dasher products at Rwanda.

Key Activities

· Online Orders are not accepted because medical supplies are delivered through drones.

· Pilots and dashers are in the active process.

· Creating and Managing technological infrastructure is a must for Zipline.

Value Proposition

· Fast delivery of products in less time and with safe methods is sent to the hospitals.

· Faster, cheaper and easier order deliveries are done through drones

(Harroch, 2018).

Customer Relationships

· Social Media is promoting the presence of the company

· Customer support is provided to the rural masses.

Customer Segments

· Customers are the hospitals in Rwanda.

· Medical Supplies are supplied to them in Rwanda

Key Resources

· Delivery persons

· Pilots

· Drone Technology is used to deliver the medical supplies.

Channels

· Website is available.

· Social media presence is making it renowned.

Cost Structure

· Fuel Expenditures are high because drones use expensive technology and fuel.

· Technological setups and running costs are also high but till date they are being managed.

Revenue Streams

· Marketing programs are not initiated because life-saving drugs are not using this marketing promotion.

· Branding programs are also not seen because medical supplies are essential for human lives. So, these are not promoted.

Business Canvas Model (Zipline)

Overview:

Amazon: Amazon was initially an online bookselling store but later in the USA, it started selling consumer products, electronics, cloud and web services, and online selling of books, videos and music too. Now, it is among the top ten list of Fortune 500 companies.It was started in Seattle, Washington by the CEO, Jeffery P. Bezos. It is working in the cloud, internet, web and retailing services. For 18 years, it is in the list of Fortune 500 companies. In 2018, revenues of Amazon were $223 billion and the company is enjoying handsome profits and valuation of the company is $162, 648 with total employees of 647, 500.

Zipline: Zipline is a startup and working to deliver medicines and medicinal supplies through drones. It was founded in 2011 by a young CEO, Keller Rinaudo. Valuation of the company is $620 million and current revenues are $113.3 million. Purpose of the company is to provide medicines in less privileged areas as in Rwanda. Amazon also started working on drone deliveries in 2013 but Zipline had already started medicinal deliveries through drones in 2011. It is working in the medical industry while using the technology of drones.

Discuss the synergies between the two companies 

Write a paragraph

Would the cultures of the companies be in sync (ex. level of innovation, level of diversity, location of headquarters, reputation of CEO, etc.)

Write a paragraph

Synergies:

Culture of the Amazon is highly innovative and diverse because it is doing work on a number of things and Zipline is focusing on its one main target to deliver medicines. Both the Headquarters are located in the USA. One is in Seattle and the other one is in Half Moon Bay. CEO's of both the companies are reputable and the level of innovation that Zipline has followed can be judged that it adopted drone technology before Amazon.

Business Models:

Amazon uses the business model of three customers value propositions which include low prices, fast delivery of the products and a wide range of products availability. Zipline also believes in the fast delivery of products and at the low costs because supplies and medicines are supplied to the rural areas where the paying capacity is not much higher. But it is focused on the niche of medicines and not too many related industries and products are added. If both the models are integrated, they will create a good partnership because the themes and the business models are alike.

Proposed Integration Strategy:

The proposed integration strategy for both the companies to make a partnership is the acquisition because Zipline is a startup and Amazon is a big Fortune 500 company which can afford to accommodate and manage the resources of Zipline. Acquisitions are safe if proper contracts are developed with the presence of a lawyer and the benefits sought by both the buyer and the seller are taken into account in such a way that both the parties are not affected from the contract.

Benefits of Acquisition Partnership:

Both the companies are well established and profitable so there will be no losses to each of them. Though Zipline is a smaller company but is also profitable. Valuation of both the companies is known and this contract will be done in a proper legislative environment to secure the benefits of both the companies. Zipline will disclose all the negative and positive aspects of the business. All the valuation and employee discussions will be beneficial because both the companies are related and their assets are also related. In this partnership, Zipline will get the benefits of the big name of Amazon and Amazon will learn from the drone experiences and penetrating through the rural markets.