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What are the chief elements of Amazon’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?
introduction of amazon company
strategies that amazon.com use to create customer value
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AMAZON.COM, INC. Mission and Vision Statement
Amazon was originally known for selling books and later, CD, DVDs and electronic books (Kindle). Today, Amazon sells various products from clothing, school supplies, automotive supplies, beauty supplies, household products and more. The mission statement proclaim Amazon’s goal is to be customer centric and providing products that are needed based on the buying trends of the customers:
“Our vision is to be earth 's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”
According to Amazon’s Financial and Strategic Analysis Review “All these features enhance the online shopping experience of its customers, resulting in
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In addition to being customer centric, Amazon claims to hold a “high hiring bar”. Customer service for Amazon and be done via the website on the “Contact Us” page, sending an email, calling the Customer Service number or online Chat. According to Amazon’s webpage, they have been ranked “#1 Customer Service” by ForSee Experience Index: US Retail Edition for 9 consecutive years up to 2013. A personal experience with Amazon customer service, after receiving an email notification that the order was shipped and delivered, no box was found. However, since this was not the first time receiving an email before the box, I waited another day. When no delivery, I sent an email to request a replacement, only to receive an email that the order could not be processed and to call customer service. The representative was polite, professional and generally concern with having the gift for a friend’s birthday. With a few more verification of my information, and asked if I was willing to wait a few more days for an investigation with the delivery company, which I agreed. When the investigation was conducted, customer service returned my call and stated that they were unable to find the product on the truck, proof of delivery and another product was shipped out, without any additional charges. Amazon did demonstrate the “customer is always right” model when asking to …show more content…
One way that have attempted to this is through television advertising. In addition, they offer Prime Membership where they offer same day, next day or two day deliveries to pull in potential customers.
The Marketing Mix
Amazon is an ecommerce marketing company and they use the traditional 4 Ps. The marketing mix of Amazon is selling to customer via the internet and allowing customers to make purchases via mobile phones, tablets and on Amazon’s Kindle product and has customer based in many countries. These products include books, eBooks, beauty and hygiene products, to fitness equipment to furniture. In addition, Amazon provides non-perishable food, with a development of providing a way of shipping perishables (prime members).
• Product – books, CD, DVD, supplies, furniture, food and other items.
• Place- Amazon’s customers are via the internet and in live in many countries.
• Promotion – Amazon advertises mostly on the internet, some television commercials and primarily relies on “word of mouth” advertising. However, according to Bhasin, “much more is needed in the promotions department from Amazon in India because the traffic of Amazon is being taken over fast by FlipKart -popular website in India. (Bhasin,
Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about 0.6 billion dollars, it held a steady growth from 1998-2006 (“Amazon.com”). From
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
Competition – The biggest competitor of Amazon is EBay and all the internet retailers and suppliers as Priceline.com; Buy.com; BN.com and many more.
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
Bezos’ vision and mission statement for Amazon is “Our vision is to be earth 's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” For the most part, this vison has been achieved, Amazon is the “top revenue maker in online retail worldwide” and is geared towards giving consumers the ability to find what they want on their marketplace site. In 2014, Amazon’s mission statement was changed “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” This was due to Amazon’s expansion of their range of consumers from only customers to customers,
The key strategies and distinctive competencies that have led the company to success and its present position of a world leader in the Internet sales can be identified as follows.
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
In addition to Amazon great physical networking presence with all of their warehouses they also have a great delivery network that allows businesses to sell their goods through Amazon. Having many warehouses spread out helps getting products delivered quicker and cheaper than many smaller businesses can. Smaller businesses sell their goods via consignment with Amazon. Selling their goods using Amazons delivery and website services helps keep cost for small businesses down despite the fees paid to
The biggest success has been that Amazon.com has become a platform that other businesses can benefit from. Making Amazon.com a general platform for e-commerce operation has been made possible through their advanced technology investments and it has become a major success. Making Amazon.com available through a Web services interface to any developer in the world free of charge has also been a major success because it has driven so much innovation that...
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
As some of you may know, Amazon has recently become a client of Deloitte. Amazon is a company that sells merchandise, produce and other goods through Amazon.com. They have also expanded into the same day delivery industry through its new venture, Amazon Prime. Recently, Amazon has been looking to focus more on growing its business outside of the United States. In order to do this, Amazon needs to increase profitability in North America. Thus, they have requested our team’s recommendations on how they can increase sales from online shoppers within the next 12 months.
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Amazon’s customer philosophy can be traced from a letter extracted to the 1997 Annual Report that stated their focal points by offering customers products that they think is worth buying. Amazon tries to set apart their operations by suggesting extraordinary way in doing transaction and start by offering online books whereby they can get access to it anytime they want. Other value-added offers include 1-ClickSM shopping, customer’s gift certificates and immensely reviews, browsing options, content and suggested features. Amazon strategy focuses on reducing the price. Thus, increase the customer value. Amazon became the market online bookselling leader by encouraging customers repeating purchases through the advertising strategy that is proven effective which was word of mouth approach.