Marketing Plan for Amazon.com
Executive Summary Amazon.com has a leading edge in the e-commerce world. It has a strong competitive advantage. However, as with many online retailers, there are certain aspects of conducting business over the web that creates difficulties and the need of marketing planning.
This marketing plan consists of environmental scan, customer behavioural patterns, current segment market, marketing strategies and recommendations in strategies.
2) Introduction Amazon.com is the largest online retailer. The company opened its virtual doors in July 1995 by Jeff Bezos in Seattle. Since then it has enjoyed rapid expansion in all aspects of its operations, including business turnover, and a spectacular rise in share
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2.4) Marketing Objectives - Achieve a 200% increase in sales per year for books - Achieve a 250% increase in sales per year for music - Achieve a 275% increase in sales per year for movies - Achieve a 100% increase in sales per year for electronics & software The percentage increase in sales for the above categories were determined by each category's required strength minus the current strength of that product line all divided by the number of years left on the loan. This is the percent increase necessary per year for the specific product line to create enough profit to exactly pay off the loan.
3) Environmental Scan 3.1) TWOS framework Threats - Decreasing economy: Amazon can no longer get cheap capital from the stock market because of the amount of failed Internet companies.
- Uncertain Internet business trends: Business risks related include amount of indebt, competition, potential fluctuations in operating results and rate of growth, foreign currency exchange rates and government regulation - Competition with suppliers: suppliers selling directly to customers may make more profit than through a middle man. It will lead suppliers cannot offer low prices to Amazon.
- Interruption of services: System interruptions caused by power losses, bad weather, hardware failure and computer viruses often make Amazon.com unavailable and prevent efficiently fulfilling orders.
Opportunities - Increasing Internet markets: Amazon.com did have a
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
Also, Amazon has emphasized on building “several distribution centers around the world to hasten deliveries”(Hof and Himelstein, 1999). Coupled with its software it provides a “laser-like focus on the buying experience”(IT Business Edge, 2012). Such a system and service is what draws customers towards Amazon and subsequently retains them.
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).
This sort of global expansion adds great complexity to the functionality of Amazon’s management, personnel, operation systems, technical performance, financial resources, and internal financial control and reporting functions. With the perplexity of current situations, Amazon may not be able to sustain growth effectively, which ultimately could bring damage to their reputation and limit their operating growth as well. .
Amazon.com is a worldwide American-based electronic company founded in 1994 by Jeff Bezos, the actual chairman and CEO. At the beginning, Amazon was just a small online book retailer, but thanks to the development of Internet at the end of the 90s, it grew quickly into a huge online retail store. Today, in the United States, one out of three online sales are made through Amazon’s website.
Amazon is an incredible company that has shaken the world, starting out being the largest book store they have become the largest everything store. They started in 1994 by Jeff Bezos, he was also the founder of aerospace company Blue Origin. Jeff took advantage of the Internet’s enormous opportunities it presented, since then Amazon has risen to a $292.6 billion-dollar company and employs 230,800 people. (forbs.com)
With the advent of the information technology, specifically the internet, it is said that more and more companies are existing in the online world. The changes in the business market also allows customers to change and become more dependent on online stores and online shopping than go and find something in shopping malls or retail store. One of the existing and considered as the largest and competitive online shopping in the world is Amazon. In this report, the goal is to analyse Amazon based on the case study provided. The analysis includes the discussion of Amazon’s s strategic intent, main resources and capabilities. In addition, this will also include analysis of the resources and capabilities that give
The threat of substitutes for Amazon is high. With the exception of its patented technology, there are quite a lot of alternatives to Amazon’s products and services. In addition to physical presence, most companies have an online store as well. Amazon’s products can be purchased all over the internet and they are just spread out among different web sites. The companies operate in brick-and-click mode providing the similar product categories and competitive prices have become the biggest threat for Amazon. However it is extremely difficult for Amazon to establish physical stores or launch price
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.
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.
Amazon faces threats that the company cannot ignore. First, the company has competition from various rivals, which include Salesforce.com, eBay, Wal-Mart stores, Best Buy, Apple, Netflix, International Business Machines, Barnes and Nobles, among many others. For example, Wal-Mart introduced a shipping policy to compete with Amazon’s Prime membership service. With this new policy, customers receive free two-day shipping on all orders of $35 or more. Second, cybercrime is present and Amazon should find ways to ensure that it always guarantees that customer privacy and security are protected.
In 2013, Amazon.com was a Fortune 500 company and a global leader in e-commerce. It had a wide array of products, international sites, and a worldwide network of fulfillment centers and warehouses and customer service centers. It had developed a customer base of around 30 million people. The company was a retailing site that followed a sales revenue model and made money by taking a small percentage of the sale price of each item sold through its website. It also allowed sellers to advertise their products by paying a fee.
Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, is an American electronic commerce company with headquarters in Seattle, Washington and is the largest Internet-based retailer in the United States (Ungar, 2014). Amazon.com started as an online bookstore, but soon diversified, selling DVDs, Blu-rays, CDs, video downloads/ streaming, MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys and jewelry (Ungar, 2014). The company also produces consumer electronics—notably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone — and is a major provider of cloud computing services (Ungar, 2014).
Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.