The above is a proposed business model canvas for the Amazon Prime service. Amazon Prime is a service that was introduced in 2005 by its parent company: Amazon. Amazon Prime provides unlimited free 2-day shipping to its customers, as well as free streaming of an enormous collection of online content such as: movies, TV shows, and books through Amazon's Kindle device. The service is presently available at a cost of $99 annually. Customers have the option of a free 30 day trial of Amazon Prime, before subscribing to the service on an annual basis.
In my opinion, Amazon Prime's value proposition is that it is easy and convenient. I determined that sales would mainly be driven by the accessibility of online content and the convenience that the service provides through its unlimited free 2-day shipping to customers.
Research was conducted online to determine that the current amount of Amazon shoppers to date is roughly 200 million, of these 200 million, 4% are Amazon Prime subscribers. Research was also conducted online to determine the amount of Kindle owners and the amount of individuals streaming online content to date, and the percentages of each as subscribers of Amazon Prime's services.
According to the metrics generated in the business model canvas, Amazon Prime is a profitable operation. The annual revenues are estimated at 1,168,695,000, while the expenses are estimated at 1,021,000,000. This gives an annual profit of approximately 147,695,000 for Amazon Prime.
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