Marketing Research

1210 WordsOct 23, 20145 Pages
3 Figure 1: Generic Strategic Options Amazon.com operates using a Hybrid Business Strategy which combines two of the abovethree strategies depending on the Business sectors it is operating within. According tocommon belief, a ll three strategies can’t be combined especially cost leadership and differentiation as ‘differentiation is usually costly... conversely; cost leadership often requiresa firm to forego some differentiation by standardising the product, reducing marketing overhead, and the like’ (Porter, 2004, p. 18).Within the period of 2009-2012, the one market that Amazon tapped into and turned itself into a global leader was the e-book reader market. The Hybrid strategy used towards this wasthe Cost Leadership…show more content…
It is this E-commerce industry thatJeff Bezos visualised through Amazon in 1995which will grow over the coming years. Despite ‘ the online channel still accounts for just 8% of total retail sales in the U.S., the future growthis going to be healthy with Amazon leading the way … U.S. growth outlook certainly looks promising, international markets can offer even higher potential in the long term ’. (Forbes,2013).Ansoff Matrix is used to analyse this growth that Amazon entails its main focus on. Ansoff Matrix explicitly considers growth options. Growth is rarely a good end in itself. Publicsector organisations are often accused of growing out-of-control bureaucracies; similarly,some private sector managers are accused of empire building at the expense of shareholders.Therefore, within the Ansoff Matrix, Consolidation acts as a fifth option which involves 2 Source:http://www.telco2.net/blog/images/Telco%202_NSN_Mktg_Forum_presentation_longform%20amazon% Figure 2: Amazon 's strategy 5 protecting existing products and existing markets as we can see in Figure 3 (Johnson,Scholes, & Whittington, 2008, p. 258). ExistingNew Products Existing New Markets · Consolidation · Market Penetration (e.g. IMDB, LoveFilm, audible.com,

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