Amazon 's Pricing And Retail Strategy

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

Both Amazon and Walmart are seeking to accomplish the same goal, to become the world’s largest retailer by providing customers with a seamless shopping experience. Both companies have their own strengths, with Amazon being the leader in the online retail space, while Walmart is the clear leader in the brick-and-mortar arena. As more online and brick-and-mortar retailers are eating into the market, both Amazon and Walmart must content with other companies as well as each other. Amazon and Walmart were both created and detonated extraordinary growth due to an innovative push unlike any other in their own respective arenas. “If either Amazon or Walmart is destined to come out on top, it must come from a massive innovation push, a willingness to

Globalization is a growing part of everyday businesses. This is the process of interaction and integration among people, companies, and governments of different nations. With the world of online retail, the buying and selling to one person to another has grown drastically. There has also been a substantial change in technology and what we as people can do in today’s time rather than in the past. Amazon is a huge retail giant and buying and selling items is one of their key functions. The impact made on Amazon is nothing but an advantage. Amazon currently is the 56th largest company in America by market capitalization. Being one the largest retailer around, 15th in the nation at that, Amazon has made a name for themselves. Amazon has made some very substantial growths and with these opportunities they face they can make even more advances in the future. (Globalization 101, 2016)

Beyond Amazon’s core markets of electronics and media, Amazon is making a big impact in the retail market. Analyst John Blackledge believes, “Amazon will become the largest retailer of apparel and accessories in the U.S. market next year, passing Macy 's as the leader” (Deagon, 2016, para. 2). Amazon announced that they will be launching their own private label dress shirts for men and expand into dress pants, sports clothing, and sweaters. In addition to that, Amazon has plans to open small retail stores at malls to showcase their electronic devices and hardware devices (Deagon, 2016).

Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online

In this report, Amazon has been found to be on the forefront towards exploiting market opportunities created by digital technologies. The company has resourcefully applied innovative digital technology to provide flexible merchandising, as well as personalized marketing services. Through the use of digital marketing technology, Amazon has been able to establish, maintain and strengthen a long term competitive advantage within its industry and beyond. As recommended in this report, the company needs to focus on steady improvement on its digital technology infrastructure based on the market environment trends, which include investing more in research and development.

In recent years Amazon has become the world’s largest online retailer, opening doors to the world to bring their businesses online too. The Waterproof Kindle will be directly sold through Amazon, so it’s important to address the company's strengths, weaknesses, opportunities, and threats. Amazon has been able to establish their spot in the market due to their “reach and global footprint as well as its aggressive pricing strategies” (Greenspan, 2017). However, there’s much room for improvement within the company because of certain weaknesses in the business model. Amazon was one of the top online bookstores before it blossomed into what it is today, because of this early success customers were already familiar with this online retailer,

The company I have chosen for the purpose of this case study is Amazon. The reason for this is because Amazon has seemingly taken the retail market by storm since its establishment in 1994. The company originally started off as an online bookstore, but quickly diversified into selling multiple forms of electronic products. Amazon is different than the traditional retail store that rely heavily on their brick and mortar stores. It has developed a business model that relies heavily on internet based marketing and sales. Amazon`s market power has allowed them to be very competitive with its pricing strategy. This has helped increased their market shares to point that has surpassed brick and mortar stores like Wal-Mart. Amazon continues to change the market by offer customers two-day shipping, streaming service, discounted products and a multitude of other products and services. As the market continues to grow the stock price have steadily increased and the current market shares for Amazon stock is over six hundred dollars. Economics plays a key part in Amazons business practices and the products they offer their customers. The purpose of economics activities is so defined because of the peculiar characteristics of human wants, which are unlimited and the resources to satisfy the wants, which are limited (Bhat & Rau, 2008).

Amazon.com, Inc. (Amazon) is a leading e-commerce company that successfully offers a wide variety of products and services offered through customer facing Websites (reuters.com, n.d.). This global e-commerce giant was born online in 1996 and continues to lead in e-commerce via sales of its own products and sales of third party products in a plethora of categories that caters to the B2B and B2C sales environments. Unlike Amazon, Barnesandnoble.com, Inc. (Barnes & Noble) did not begin as an online e-commerce company. The inception of Barnes & Noble began in 1986 and focused on the retail environment in “content, digital media and educational products” (reuters.com, n.d) with its principal focus on trade books. However, the digital segment of Barnes & Noble, which offers books, magazine, DVD’s, software, and electronics, etc. does compete with Amazon (reuters.com, n.d.). According to Cheeseman (2013), the

Amazon is the world’s largest online retailer and is indeed a pioneer in the online retailing space. Though it started as an online bookstore, its success in its venture spurred it to diversify into selling anything that can be sold online. Further, Amazon has also expanded globally and now operates around the world through a combination of localized portals and globalized delivery and logistics platforms. Amazon has achieved a great level of success in the online retail industry. Under the five generic strategies, Amazon’s strategy would fall within the strategy of being a low cost provider. , Amazon’s strategy is driven by its sources of competitive advantage wherein it is focus on technology, actualizing the benefits of economies of scale, and leveraging the efficiencies from the synergies between its external drivers and internal resources have been the cornerstones of its business model.

Amazon’s core competencies are in its ability to effectively use and develop technology to drive site traffic and enhance the customer experience. Their distinctive use of website real estate coupled with their ability to leverage their brand and effectively use that leverage to deliver low prices and high quality products, makes them a leader in online retailing. Their partner brands and their ability to adapt and recognize deficiencies enable them to effectively cut out the middle man, or at the very least, partner with them.

Business like Amazon wants to make buying item from their business easier for customers. This is why Amazon offers E-retailing which gives customer option to go shopping online. The internet has had impact change on consumers shopping habit as shopping online has numerous advantages which is why online shopping continues to gain popularity. Some of the advantages of E-retailing is that it’s convenient as consumers are able to go shopping at home which could help them save cost on travelling and also gives consumers an option to compare prices of different products as there are wide range of products being sold online.

Amazon, a tech giant and the biggest web shop in the world, is feared widely by retail companies. The company started out as an online bookstore and quickly expanded their product range with music, clothes, and numerous retail products and is becoming an “Everything Store”. Apart from their retail products, Amazon is known for their technological products. Amazon is a tech giant which exploits internet as their central business, which is contrary to their retail industry competitors. Amazon does not own physical stores but sells their products on their online store and delivers them at home. One of the reasons why retail companies fear the “Everything Store” is because Amazon disrupts retail industries through their

Amazon Inc. is a commercial company of American origin that has its principal activities in cloud computing and electronic commerce. The company has separate retail websites in many countries including the United Kingdom, France, Canada, Ireland, Germany, Spain, Japan, and Netherlands among others. Amazon has a major competitor that is Walmart, but the company works hard to suppress the latter so that it remains the most valuable retailer with stable market capitalization in the United States (The Guardian, 2015). Operations at Amazon include both local and international shipping that take place within its websites, and that is why it is ranked the fifth largest company globally. This paper is a portfolio project of Amazon Company and its operations in three countries; Japan, Germany, and the United Kingdom.