Amazon Inc. is an e-commerce corporation that happens to be one of the sustainable online retailers in the United States. Just last year, it was reported that Amazon has exceeded Wal-Mart as the most valuable retailer in the United States. Starting off as an online bookstore, the company has grown since 1994 when the CEO Jeff Bezos introduced it. Over the years they have branched out to selling electronics, food, clothes, toys, and furniture. They have also developed their own line of products such as the Amazon Kindle, Fire Phone, and Fire TV.
In fact e-marketing gives consumers an occasion to receive essential information about products, which they are interested in. The essential point here is that they can see the images of the products too. This is not the whole story, the main benefit of e-marketing is that people can join global trade throughout the Internet and buy things without commuting. By doing this, people save their time. For instance, by exerting a few short click, people can book a test drive or can give an order for iPod (quirk marketing, 2006, p3).
It boomed with yearly sales that jumped from $510,000 in 1995 to over $17 billion in 2011. Amazon’s mission changed to leverage technology and expertise in invaluable employees to provide customers the best shopping experience on internet and became the “Earth most customer-centric company”. The company introduced a new strategy called “Associate Program” which the goal was attracted new customers to its retail storefront and grows sales. This new strategy proves to be the most important advantage and the company’s sales revenue produced by the associates reached 40%. Another innovation announced by CEO Bezos in 2011 was shifted Amazon to tablet marketplace with the introduction of the Kindle Fire.
Amazon saw this and began a simpler and more convenient way to but CDs online and eventually bought out CDnow.com, becoming the premier site to buy CDs. Founded as Cadabra.com by Jeff Bezos in 1994, Amazon.com was launched in 1995. It is an American electronic commerce company based in Seattle, Washington (Wikipedia 2006). It is one of the first major companies to sell goods over the Internet and one of the most recognized and respected online businesses. It has become the number one online retailer by steadily building its reputation and brand, beginning its operation in July of 1995 (cited in Haddad & Sheth 2001).
Jeff Bezos started with an idea to sell books on-line by being able to hold more books than any other brick-and-mortar store. The first mover advantage that Amazon gained has not let up since. Amazon has created customer loyalty through the use of 360 degree customer profiles and product recommendation system. Furthermore, Amazon has allowed access to big data for a monthly fee and created a web store for businesses saving on huge investments in development for a commission on sales. Big data is constantly evolving and Amazon is ahead of the curve with the application and analytics of big
Finally, according to the study, leading brands such as Amazon do not ignore price, but they adjust price derived from desire (Millward Brown 4). Also, in another study released by ForeSee on customer satisfaction among internet shopping giants, Amazon topped the list (Tecca 1). The truth that Amazon was number one among dozens of companies with regards to their customer satisfaction is not an outstanding finding to the 152 million individuals with active Amazon customer accounts (Tecca 1). What is outstanding is the reality that ForeSee’s client satisfaction ... ... middle of paper ... ...e than what they perceived they would buy. It is worth the cost to sign for an annual membership with this internet shopping giant due to the many issues stated above.
INTRODUCTION Amazon.com entered the UK market as Amazon.co.uk on October 1998 by acquiring the site previously operated by Bookpages Ltd. The company began as US online book store in 1994. The retailer soon became very successful in the new market as its primary offer included over 1.4 million book titles, comprehensible search tools, secure transaction, direct shipping and also high discounts on thousands of popular books (Amazon, 1998). During 17 years of its presence on the market, Amazon offers various products and services including books, DVD, jewellery, electronics, furniture, , clothes, cosmetics, digital downloads, website development etc. (Datamonitor, 2010).
Firstly, online shoppers are already accustomed to buying items through the internet. Secondly, the target market is likely to increase as consumers get familiarized with online services. According to comScore’s State of Retail report, “78% of the U.S. population has bought at least one item from an online store” (Fulgoni). As a growing market segment, the firm has chosen the right target market. In addition to this, AmazonFresh aligns itself to the needs of this market segment.
For Jeff Bezos, he wants the business to focus on the customer (Bishop, 2013). While other businesses are distracted with trying to get ahead of Amazon, Amazon is focused on the customer and not the competition. • Low entry barriers to industry- Since Amazon is an online retailer, there are low barriers of entry. Anyone who wants to can set up an ecommerce website and start selling their own products. This is a potential threat to Amazon because anyone can start their own website and achieve to sell more than Amazon.
Leveraging the unique attributes of the Internet, Priceline.com finds sellers willing to meet buyers' needs and price. Jay Walker, the founder of Priceline.com, created a new concept and business model. This model shifts the setting of prices from sellers to buyers. The company seeks to use its patented system on products such as airline seats, hotel rooms, gasoline and groceries. Using a simple and persuasive consumer proposition called "Name Your Own Price," Priceline.com collects consumer demands for a product or service at a desired price.