Digital Economy
Table of content
Literature review...........................................................................................2
Service Dominant Logic.............................................................................2
Schumpeter’s theory of Creative Destruction............................................2
Trends........................................................................................................3
Challenges.................................................................................................3
Digital Transformation analysis.....................................................................3
How has AI transformed Amazon operations.............................................3
How has Blockchain technology transformed Amazon operations.............4
How has Prime video transformed their business Model............................4
Transformation in Customer Interactions...................................................5
Impact assessment.......................................................................................5
Revenue Generation..................................................................................5
Market Competitiveness............................................................................6
Case study presentation...............................................................................7
Ad subscription business model.................................................................7
AI................................................................................................................8
What are the limitations of incorperating AI into Amazon operations........9
Strategic recommendations..........................................................................9
Reflection....................................................................................................10
Bibliography................................................................................................10
Written by s4302666
, Literature review
Service Dominant Logic
The online streaming service industry exemplifies the principles of the
Service-Dominant Logic (SDL) framework by positioning users as active
participants in the value creation process rather than as passive consumers
of content. Through various user interactions—such as viewing behaviour,
content ratings, feedback, and watch history—streaming platforms
continuously refine their recommendation algorithms. As a result, they can
offer highly personalised and adaptive content experiences. This dynamic
exchange reflects SDL's emphasis on value co-creation and highlights the
essential role of operant resources, such as data analytics, machine learning,
and customer insights, in delivering meaningful service outcomes (Vargo &
Lusch, 2008).
Instead of providing a one-time product, streaming services deliver ongoing,
experience-based offerings that evolve alongside user needs. This aligns with
SDL's foundational idea that service is the basis of all economic exchange.
Furthermore, many platforms now operate within broader digital
ecosystems. They integrate with smart devices, voice assistants, mobile
apps, and bundled services, creating a seamless and user-centred
experience. This ecosystem-driven approach illustrates the industry's shift
toward collaborative, interactive, and resource-integrated service models,
consistent with the SDL perspective (Lusch & Nambisan, 2015).
Schumpeter’s theory of Creative Destruction
The online streaming service industry illustrates Schumpeter’s theory of
Creative Destruction by fundamentally changing the way media is consumed
and distributed. It disrupts traditional models such as broadcast television,
physical media rentals, and cinemas. In the past, audiences depended on
fixed TV schedules or trips to the cinema to access new content. Today,
streaming platforms provide on-demand, subscription-based access to a vast
library of personalized content that can be accessed anytime and on multiple
devices.
This shift has significantly diminished the dominance of traditional cinemas,
which find it challenging to compete with the convenience, affordability, and
variety offered by digital streaming services. By utilizing digital
infrastructure, data analytics, and original content creation, streaming
platforms have not only altered consumer expectations but also redefined
the structure of the media industry. This evolution exemplifies Schumpeter’s
Written by s4302666
Table of content
Literature review...........................................................................................2
Service Dominant Logic.............................................................................2
Schumpeter’s theory of Creative Destruction............................................2
Trends........................................................................................................3
Challenges.................................................................................................3
Digital Transformation analysis.....................................................................3
How has AI transformed Amazon operations.............................................3
How has Blockchain technology transformed Amazon operations.............4
How has Prime video transformed their business Model............................4
Transformation in Customer Interactions...................................................5
Impact assessment.......................................................................................5
Revenue Generation..................................................................................5
Market Competitiveness............................................................................6
Case study presentation...............................................................................7
Ad subscription business model.................................................................7
AI................................................................................................................8
What are the limitations of incorperating AI into Amazon operations........9
Strategic recommendations..........................................................................9
Reflection....................................................................................................10
Bibliography................................................................................................10
Written by s4302666
, Literature review
Service Dominant Logic
The online streaming service industry exemplifies the principles of the
Service-Dominant Logic (SDL) framework by positioning users as active
participants in the value creation process rather than as passive consumers
of content. Through various user interactions—such as viewing behaviour,
content ratings, feedback, and watch history—streaming platforms
continuously refine their recommendation algorithms. As a result, they can
offer highly personalised and adaptive content experiences. This dynamic
exchange reflects SDL's emphasis on value co-creation and highlights the
essential role of operant resources, such as data analytics, machine learning,
and customer insights, in delivering meaningful service outcomes (Vargo &
Lusch, 2008).
Instead of providing a one-time product, streaming services deliver ongoing,
experience-based offerings that evolve alongside user needs. This aligns with
SDL's foundational idea that service is the basis of all economic exchange.
Furthermore, many platforms now operate within broader digital
ecosystems. They integrate with smart devices, voice assistants, mobile
apps, and bundled services, creating a seamless and user-centred
experience. This ecosystem-driven approach illustrates the industry's shift
toward collaborative, interactive, and resource-integrated service models,
consistent with the SDL perspective (Lusch & Nambisan, 2015).
Schumpeter’s theory of Creative Destruction
The online streaming service industry illustrates Schumpeter’s theory of
Creative Destruction by fundamentally changing the way media is consumed
and distributed. It disrupts traditional models such as broadcast television,
physical media rentals, and cinemas. In the past, audiences depended on
fixed TV schedules or trips to the cinema to access new content. Today,
streaming platforms provide on-demand, subscription-based access to a vast
library of personalized content that can be accessed anytime and on multiple
devices.
This shift has significantly diminished the dominance of traditional cinemas,
which find it challenging to compete with the convenience, affordability, and
variety offered by digital streaming services. By utilizing digital
infrastructure, data analytics, and original content creation, streaming
platforms have not only altered consumer expectations but also redefined
the structure of the media industry. This evolution exemplifies Schumpeter’s
Written by s4302666
