Final answer:
Rafi Mohammed suggests that Amazon could increase customer satisfaction and potentially create new revenue streams by unbundling its Prime services, allowing customers to subscribe separately to different components such as shipping privileges or streaming content.
Step-by-step explanation:
The question "Why Amazon should unbundle Prime by Rafi Mohammed?" relates to business strategy and marketing. The underlying suggestion by author Rafi Mohammed is that Amazon could benefit by offering parts of its Prime service as separate, standalone products, rather than bundling them all into a single subscription service. The rationale behind this proposition includes the potential to reach a wider range of customers with different needs and price sensitivities, and to create additional revenue streams by allowing customers to purchase only the services they most value.
For example, some customers may value the free shipping aspect of Amazon Prime but have little interest in the streaming services included in the package. Unbundling could allow such customers to pay a reduced fee for shipping privileges alone, potentially increasing customer satisfaction and loyalty. Similarly, customers interested primarily in Amazon's streaming content could subscribe exclusively to that service.
Benefits of Unbundling Prime
- Increased customer satisfaction by offering tailored options
- Potential to attract new customers with different price points
- Opportunity to create distinct product lines and revenue streams