Retail Strategies and Analyses for Amazon and Ebay

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What is a Retail Strategy? A retail strategy is a clear and definite plan outlined by a retailer to target a market. Retail strategies aim to build long term relationships with customers. Retail strategies outline the mission and vision of the retail organization. Elements of a Retail Strategy include the target market segments that the retailer plans to focus its retail mix and resources, the retail format to include the retail mix and a sustainable competitive advantage. The Strategic Retail Planning process includes: 1. Defining the business mission 2. Conducting a Situation Audit, Market Attractiveness Analysis, Competitor Analysis and a Self-Analysis of the organization 3. Identifying Strategic Opportunities 4. Evaluating Strategic…show more content…
• Third party merchants. Amazon has a huge number of merchants selling their goods using their platform. Amazon provides fulfillment services for many of these companies and receives high gross margins from these merchant units. • Low overhead cost. As the business is operated exclusively online, the company has reduced overheads when compared to retailers such as Wal-Mart and Barnes & Noble. Weaknesses • Mainly has online presence. There is a limitation as Amazon lacks physical presence when compared to retailers such as Wal-Mart and Target. • Selling at zero margins. Many products offered by Amazon are sold at zero margins in order to gain the market share above that of the competition. • Negative publicity. Amazon has recently attracted negative publicity due to tax avoidance in the countries where it earns most of its revenues. Amazon is also criticized for poor warehouse conditions for workers, anti-competitive actions and price discrimination. Opportunities • Online payment system. There is an opportunity for Amazon to extend its current payment system and introduce a service similar to PayPal. This would ease the purchase experience for persons making payments using mobile phones. This payment solution could also be sold to other online retailers for use. • Increase Private Branding by releasing more of its own products. • Consumer staples and

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