Compare And Contrast Amazon Pricing Strategy

A. Government Agencies – The Federal Communications Commission, is a commission that defines the broadband to meet customer broad communication needs and desires.

Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.

Amazon can use 3rd degree price discrimination to divide customers into different groups and charge a different price to customers in different customers in different groups, but the same price to all consumers within the group. The firm will charge groups of customers prices relative to their demand elasticities. We can illustrate this on a graph:

This paper covers the accounting errors related to freight costs that led Overstock.com in 2006

The setting of ‘fair’ prices to consumers: the company should bear in mind that customers nowadays will shop around to compare the intended products and services. However for the business survival and growth purposes, the company should also maintain its profit margins to ensure its business growth and expansion. The company needs to consider its cost factors and business operation areas to reduce or minimise the costing areas.

There are many outside influences that affect a company's profitability and bottom line. It is important for companies to set the right price in achieving that profit. Companies are in business to make a profit, but it can be challenging on how to determine how to price products. The grocery industry is a highly competitive market and today's grocery retailers use all kind of strategies to increase their sales and retain customer loyalty. With the fluctuating commodity prices and how online retailers (Amazon) entering in competition with the grocery retail business is becoming fierce. As competition for the food dollar intensifies, establishing essential marketing strategies is a key tool in sustaining business and building competitive advantages. In this paper, three U.S. supermarkets have been chosen to analyze their pricing strategies; Trader Joes, Harris Teeter, and Aldi.

When amazon was founded in 1996, the company began as a small online book retailer but has since transformed into a retailing giant that is able to compete in a highly competitive market. Although amazon competed predominantly with other e-retailers during the information technology boom that took place in the 90s, with an aggressive business and supply chain management strategy, amazon was propelled among the ranks of other industry leaders. Amazon has created a reputation that is characterized by its innovation, supply chain management strategies, and the use of disruptive technologies.

Amazon Warehouse Deals is a piece of Amazon.com that represents considerable authority in offering awesome arrangements on returned, stockroom harmed, utilized, or revamped items that are in great condition yet don 't meet Amazon.com thorough measures as "new." We additionally offer items in new and open-box condition. Amazon’s mission is to be ‘Earth’s most customer-centric company’, and our award-winning Customer Service team is an essential part of that mission. Through our innovative world-class self-service technologies developed by our “CS” team, we support customers from 75+ service locations around the globe. We consider each contact an opportunity to advocate for customers and provide support via phone, email and chat 24/7. Our CS technology and product teams build world-class CRM systems and innovative self-service solutions that are used by millions of customers each day on Amazon’s websites, shopping apps, and through Amazon’s family of digital products such as Kindle, Echo, and Alexa.

In this assignment I will be comparing the differences and similarities of Google and Amazon.

In my opinion, the best online retailer is Amazon. They easily have the best customer service and product fulfillment when compared to other online retailers. The inventory in the USA is over 200 million products, making such a feat impossible for a physical retail store to compete (Export, 2013). The following essay will discuss Amazon’s pricing and retail strategy. Both are key factors of their marketing that allow Amazon to sustain their market dominance and retain their loyal customers.

Here the success of the strategy depends on the ability both to understand and to deliver enhanced value in terms of customer needs, while also having a cost base that permits low prices and is sufficient for reinvestment to maintain and develop bases of differentiation” (Lou Venter,2006,251). Formulating two strategies without contradiction could be seen as risky to some who relate to single strategies especially in corporate environments as in the case with Apple and Domino Pizza who have a single strategy. Using this type of approach is critical as we aim to meet the strategic objective mentioned earlier as aims satisfying both product differentiation and cost leadership in fulfilling the competitive advantage. Companies such as IKEA and TESCO have been seen as successful in implementation this type of strategy, International Journal of Business and Management Vol. 7, No. 20;

This suggests that a company can choose to pursue one of the two types of competitive advantage. It either chooses to use lower costs than the market competitors through differentiating itself along dimensions value by customers to command a higher price or they can choose to pursue one of the two types of scope which are focus that is selling they products to a very specific market segment or industry-wide which means supplying their products to a broader market with many segments. In our case, H&M pursues the cost leadership strategy because their business value relies on the supply of affordable and fashionable clothing at record times. This situation also helps the company to set the barriers of entry in the industry high for new

The main issue regarding the expansion of online market and the low barrier at the entrance that characterize the e-business is that many other shoe resellers and low cost companies accessed the market, raising the level of competition. As cited on the provided case, an increasing number of users gets to Zappos by using referral provided by Google, right after having compared the prices of the online shops for the same article. At the same time, Zappos has few possibilities to low down the prices over a certain point, has it has to buy from Nike, Adidas, and all branded producers that impose most of the price. In the final retail price Zappos has to include the high costs on customer service, shipping and overall experience; all these factors combine and most of the time exceed the prices offered by low cost resellers, which give up the quality of the service in order to be able to offer low prices.

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).