Table of Contents
Contents
Executive Summary. 3
Current Marketing
Situation. 4
Competitors. 6
Stakeholders of Amazon. 7
Objectives and Issues. 7
Marketing strategy
Executive Summary of
Marketing Plan for Amazon E-Commerce
The selected
company is Amazon, and this report is talking about the marketing plan for bringing
some improvements within the company’s online marketing. The e-business model
as well as the e-business strategy which has been utilized by Amazon. The Amazon
incorporation is offering its services as well as the Retail online goods to
the potential customer and buyers of the company. It is very clear and
transparent that the strategy of e-business is complimenting the used model of
e-commerce of Amazon. The new business platform is something different because
the strategy of web marketing, which Amazon has used as well as will be
succeeded.
The report
basically provides an analysis on Amazon e-commerce strategies as well as
telling more about the marketing plan of the company which needs some
improvements to become more effective in the market to increase the amount of
the customers for grab a high market share as well as to increase the
competition in the market. By researching on Amazon, the company is basically a
retailer company which is providing multiple products in the world by serving
the service to the customers throughout the world. The special focus of this
report was given to the significant topics consisting of the business structure
of the company, the structure of the business plan, the objectives of the
company, competitors, and the segmentation of the market, the current situation
of the company as well as the current services and product in the market. 3
Amazon announces
150 services and new tools which are going to launch for assisting to the small
as well as medium-sized business for growing online sales of the company. The new
services will be launched along the products of the company for increasing the
sales of the company immediately as well as it can make a high and strong
competition in the market. Amazon sold new tools for helping the sellers to
maintain the pricing of their products into the stores of Amazon. While the tools
of fulfillment such as managing targeted inventory which grants permission to
the sellers for managing the fulfilments of the needs of the company.
Furthermore, these tools and services which are provided to the customers by
Amazon, it can help both small and large scales business enterprises and companies
as well as the by having this providing this kind the assistance, the company
can grow in the market by the increasing the sales of the company, as well as
the amount of the customer, will also be increased. On the other side, the main
objective of Amazon is just to bring the improvements into the strategies of
marketing as well as to increase the immediate sale by the e-commerce or online
website store.
Current Marketing
Situation of Amazon e-Commerce
In the current marketing
situation, the actual condition of Amazon is discussed including SWOT analysis,
the description of Market, current products in the market, strong competitors,
suppliers as well as current distributors in the market. So, the overall
situation of the marketing is discussed in the report, which tells that what
are the basic strengths, as well as the current strengths of the company.
SWOT Analysis of Amazon
e-Commerce
Strengths of
Amazon e-Commerce
Customer-Centric – the customer-centric processes has been created
by the robust CRM of the company in order to note the data on the buying
behavior of the customers. It enables the customers of the company to offer the
items of an individual or the associated items which are based on the favorites
established by buying the products or the visited products. The company also
claims that fifty-five percent of its customers are repeat buyers in the
outcomes within the low cost of the new customer’s gaining.
Cost Leadership – the company is very effective in the market
currently because Amazon has developed many strategic associations with other
companies for offering customer service superiority. The most significant tie
with the providers of the logistics which is handling the costs. Furthermore,
this thing is also contributing to the value chain strongly due to conducting
the business of the scale of the economy.
Acquisitions – Obtaining the companies such as the proven for being
successful as well as the step of generating the revenue for the giant of the eCommerce.
Weaknesses of
Amazon e-Commerce
There are some weaknesses of
amazon, which are as follows. The company’s biggest ever weakness is the
shrinking margins. The margin of the Amazon due to the price war and the
delivery of the network is the consecutively shrinking. Due to the shrinking of
the margins, the company has to face a heavy loss. The tax avoidance issue is
telling about the negative publicity has been attracted by amazon on account of
the avoidance of tax with countries such as United Kingdome as well as United
States.
Another threat is the product
flop. In the past months, Amazon did launch a product with the name of the fire
phone in the United States, but that phone was a big flop from the products of the
Amazon store. In short, the company’s products are very illogical which can
make the services flop, as well as the buyers, cannot buy again from Amazon.
Opportunities of Amazon
e-Commerce
There are some opportunities
exist for the company in the market, which are strengthening the company’s
business. The backward integration is the very first and important opportunity
of the company. The company can easily differentiate the offered offerings
which will be very helpful to generate high profits from the market from the eCommerce
market. The second opportunity of the company is the expansion of the company
globally, which is mainly in Asian as well as in the developing economies
because they can provide assistance to the business of the company to expand
their business where people are now fresh of the boats. The Company can also
open their physical stores outside the United States because many of the people
are really don’t know how to place order from the internet, or some people also
have no device for purchasing.
Threats of Amazon E-Commerce
The low entry barriers of the
industry are the very first threat to the company. The low entry barriers are providing
an open area to others to come into the market. Some governmental legislations
are limit the workability of the company such as taxes and retail prices. The
local competition is also a big threat to the company.
Competitors of Amazon
e-Commerce
· Walmart
·
eBay
·
Alibaba
·
Google
·
Microsoft
·
Salesforce
·
Oracle
·
Flipkart
Stakeholders of Amazon
·
Shareholders
·
Clients
·
Employees
·
Management
·
Governmental Authorities
·
Investors
Objectives and Issues
of Amazon e-Commerce
There are some objectives are
mentioned here of Amazon. The very first the objective of the company is the
open a bookstore where all of the books which are registered in the store of
Amazon with the original number on the very low prices. The second one is to
open the grocery shopping options where every person can buy the grocery items physically
by going into the store. Amazon 4-star and pop-up stores are also the objectives
of the company. The 4-star of the Amazon is inspired by its consumers. It wants
to make a new trend into the market, which means that the customers can rate an
item which shows the strength and famously of the product, as well as the
customers, can easily purchase that item.
Some issues have arisen towards
the company from the users of the products of Amazon as well as the customers. Sometimes,
the customers don’t get their desired items. Some governmental legislations are limit the
workability of the company such as taxes and retail prices. The local
competition is also a big threat to the company. Some illogical things or products
are also produced by the company which is very dangerous for the fame of the
company and the business.
Marketing strategy of
Amazon E-Commerce
A cost leader methodology is a
place the cost might be comparable or usually lower than the challenge, yet
costs are absolutely lower. The company should have to set the new segments of
the market because the new markets have more potential. The marketing
segmentation will be based on the demographic as well as the psychographic.
Generic corporation strategy must be adopted by amazon because it can create
the value of business items for the customers. If the marketing plan is strong
then the company will also become stronger. Web marketing, as well as the
social Strategy, is also applied to the company because social media marketing
is very effective way. The Facebook Advertisements are very effective which can
promote the ecommerce website of the company.
Every item should be very sold
out with a brand of Amazon. The prices of products should less than the
products which are available in the open market as well as it will be available
only on the physical stores Amazon and online store of the company. Amazon is
considered as a giant within the market, which is currently using psychographic
segmentation as well as the demographic segmentation for the selected market
segment. The segmentation of Amazon is based on the actual purchase behavior
that what is the need of the customers or the people in selected segment of the
market as well as the segmentation of amazon is based on needs of people. Every
customer, high-value customers as well as make allowed Amazon for
transformation of the visitors within long term customers, are targeted individually
by the micro-level of Amazon segmentation. No doubt, Amazon is a big giant in
the world, but it needs some improvement in the business strategy, which will
help the company to grow the sales immediately.