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Chapter Highlights

Building Block 1

Amazon’s business model is customer-obsessed, continuously expanding, built on novel concepts of platform, ecosystem, infrastructure and personalization (M=1), able to defy traditional laws of diminishing returns, and actually delivers increasing cash flows and higher return on investment.

What’s Amazon business model?

1.0: Online bookstore

2.0: Online everything store

3.0: Unstore - online platform

4.0: Infrastructure and online and offline platform

What’s its underlying logic?

Customer obsession

Relentless drive to invent

Long-term thinking

Earnings vs. cash generation

How to make it work?

The Amazon Management System

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