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Amazon 's Strategic Marketing Strategy

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Amazon today was not as thriving and robust as it was in the beginning. Amazon originally was set to market compact discs, computer hardware, computer software, videos, and mainly books. With the use of Information Technology, Amazon was able create a new business model using the Web as a place for transactions. As consumers learned it was easier to purchase goods with via the web rather than physically going to the store, Amazon created ecommerce and e-business models that generated massive profits for the company. This paper will discuss primarily on how IT aided in Amazon’s strategies involving their ecommerce business as well as their Web Services business. Before diving into Amazon’s business strategies, it is crucial to draw the…show more content…
With these two major businesses, Amazon is able to dominate against its competitors. Amazon’s ecommerce business has a multi-level strategy that has many aspects. Amazon first started off by focusing the relationship between the company and consumer as well as the relationship between the company with other suppliers. However, the strategy changed to incorporate a customer to business transaction. Amazon started to value customer reviews and as a result added it as part of the product descriptions. Amazon’s new ecommerce business strategy also facilitates customer to customer relations with the provision of the Amazon marketplace which act as a middle man to promote consumer to consumer transactions. This strategy allows almost anyone to sell almost anything using Amazon’s platform. Other large e-commerce sellers also use Amazon in order to sell their products in addition to selling them through their own websites. This goes to show how big Amazon really is compared to its competitors. The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfillment and Amazon leases space for these retailers. Another crucial strategy for Amazon is its use of meta sellers. Meta sellers are members or entities that advertise goods on Amazon who also request these goods directly from other competitors but usually from other Amazon members. On a hypothetical situation where these
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