The Marketing Strategy Of Amazon

1230 Words May 1st, 2016 5 Pages
The company I have chosen for the purpose of this case study is Amazon. The reason for this is because Amazon has seemingly taken the retail market by storm since its establishment in 1994. The company originally started off as an online bookstore, but quickly diversified into selling multiple forms of electronic products. Amazon is different than the traditional retail store that rely heavily on their brick and mortar stores. It has developed a business model that relies heavily on internet based marketing and sales. Amazon`s market power has allowed them to be very competitive with its pricing strategy. This has helped increased their market shares to point that has surpassed brick and mortar stores like Wal-Mart. Amazon continues to change the market by offer customers two-day shipping, streaming service, discounted products and a multitude of other products and services. As the market continues to grow the stock price have steadily increased and the current market shares for Amazon stock is over six hundred dollars. Economics plays a key part in Amazons business practices and the products they offer their customers. The purpose of economics activities is so defined because of the peculiar characteristics of human wants, which are unlimited and the resources to satisfy the wants, which are limited (Bhat & Rau, 2008).

Market Power

As we all may know government regulators are concerned with market power. When we look at Amazon`s business practices this is…
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