Amazon Case Analysis Essay

Amazon believes in keeping its marketing plan simple in order to be effective. Consequently, their marketing plan is based upon the 4 P’s (product, price, place, and promotion). Amazon’s product is to provide an unparalleled selection of any item that exists on the planet. Its prices are extremely competitive and often lower than traditional stores and it is more convenient for people to shop on the internet (place) than it is in a physical location. Finally, its promotion emphasizes big ideas, innovation, technology, and customer centricity, enabling it to market itself as the most convenient place for consumers to shop and satisfy their needs (Kerin & Hartley, 2015). This strategy targets

Amazon intended to benefit from cross selling on the basis that it already has a loyal installed base in place. (Krishnamurthy, 2004) Amazon also benefited from economies of scope as its basic infrastructure is already in place and highly scalable.

Amazon can benefit from lower transaction costs. In the past, many firms did not want to price discriminate because it was time consuming, difficult and expensive to collect information about how each customer reacts to a change in price. However, recent advances in computer technology have pushed the transaction costs

Due to Amazon.com building their business model around their customer 's ever-changing tastes and preferences, they were able to avoid the dot-com bust - a period between 2000-2002, where many dot-com companies went bankrupt (Dot-com bust, 2012).

Luckily for Amazon.com, this company is one the largest retail sellers in the online world. Amazon is a company with a single enterprise that has risen to the top of the Most Innovative Companies List. It has been increased to this fortitude due to this company’s innovative ideas and the ideas for growth for their consumers as well. As technology had changed, so did Amazon by offering Prime which was a membership that could be purchased to allow the consumer to acquire items faster and receive the products more quickly.

Amazon.com, Inc., on May 28, 1996, started offering a range of products and services through on-line webpages. This new company began to offer products including merchandise and content that was purchased for resale from multiple vendors and sellers ranging from lots of third-party ways. The Amazon.com business has three different segments within its operating environment: Amazon Web Services, North America, and International make up the operating areas. The North American area for Amazon has segments that focus on the sales from retailers of consumer items or product from sellers through its website Amazon.com.

Amazon is the world’s largest online retailer that was launched in 1995 (Rouse, 2014). Amazon was mainly a book selling company that has enlarged its’ business by selling a variety of goods. The company sells all types of technology devices such as cell phones, games, televisions, movies, cameras, computers,

Amazon focuses on global reach, putting customer first,, and extensive selection of products through its vision which is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online” (Gregory 2016).

When Amazon first started, it began as a website for only books and as the internet began to expand so did the products that Amazon selling and shipping. Over the course of the last 21 years, Amazon has grown and sells a vast variety of products and has several

Kargar reports, “the company had a weak balance sheet [and] massive negative operating cash flow” (Kargar, 2004). Throughout the company’s financial history there have been many monetary losses. According to Robert D. Hoff and Heather Green, in 2002, “the company still carried $2.2 billion in long-term debt” (Business Week, 2002). In International Journal of Cases in Electronic Commerce, Pauline Ratnasingham reports that “Amazon.com shareholders lost 80% of their value in 2000” (Ratnasingham, 2006). Though sales increase rapidly, losses continue to soar as well. Despite the financial failures, in 2006 Bezos’ still believed that his investments would yield big payoffs in later years and that Amazon.com would be a “meaningful business...one day” (Hoff, 2006).

The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the

Often a person does not want to go out and buy a product they want or need, so they can go on Amazon.com and make the purchase from the comfort of their home. Amazon provides a convenient and easy way to buy products online. Although Amazon sells a large assortment of products, what they actually sell is good customer service. Their product is giving their customers the best shopping experience. That means offering the product that the customer is looking for, making it easy to find and purchase on their website, and making the shopping experience customized to each individual customer. The price is virtually free for the customer. The customer only sees the price of the products that

Amazon is a company that sells many open product categories online by allowing customers to take the time to search and shop through the product offerings. Many product categories that are offered on Amazon may include device accessories, kindle devices, beauty, books, electronics, health & personal care, etc. The foremost product category that can offer the greatest advantage compared with a retail store chain is most definitely the books category. Reason to this is that the company has expanded the customer’s online shopping experience by offering such a wide range of physical and electronic books, depending on the preference of the customers. They are able to search for the top-rated selling

They have this thing called Amazon Prime Now, that gives customers that have it, better deals and discounts in products on the website; to clarify, the website makes their audience spend money twice when shopping there. First, they have to become an Amazon Prime Now and that costs a subscription fee and then they will purchase the products with a discount; this is beyond genius because, Amazon not only uses the time limited technique, but also uses the Competition for Scarce Resources technique. Therefore, people will feel attracted to purchase, because there is a competition against customers that are not prime and those deals are only exclusive for

Since expanding its catalogue to include more than books, there’s little that one cannot find on Amazon as far as frequent and regular purchases go. Notable exceptions are liquor and tobacco, which cannot be bought on the website. This means that the average Amazon consumer in America today has little reason to consider other online merchants, most of who also don’t sell