The Marketing Strategy Of Amazon Essay

The Marketing Strategy Of Amazon Essay

Length: 886 words (2.5 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Amazon is one of the largest online retailers in the world. The company reported better-than-expected second quarter results surpassing our estimates on revenues and earnings. Amazon is driving value across all its businesses and especially the retail business remains very hard to beat on price, choice and convenience. The company has a solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships. The AWS generates much higher margins than retail, so it has a very positive impact on Amazon’s profitability. Devices and IoT is also a potential growth area. However, Prime saturation in the U.S. market and competition in online retail remains concern. is one of the largest e-commerce companies in the world. Although the primary product line was books at first, the company rapidly diversified into a host of other product categories. The current focus is on building video content, primarily for Prime subscribers because the growth prospects in that market are considerable. Product selection, a superior user experience, bargains and customer feedback have helped the company build a strong position for itself in the fast-growing ecommerce market. The growth of the e-commerce industry, with consumers increasingly buying things online is a dynamic going in favor of the company. While the big brands may build their own online stores over time, a platform like Amazon allows discovery my new buyers. Smaller players are far more dependent on Amazon as they don’t have the resources that Amazon has to invest in technology and fulfilment to generate the kind of reach that Amazon can deliver. Moreover, the market is in the early growth phase (considering opportunities in intern...

... middle of paper ...

... growth phase and protect against the cannibalization of its traditional media business. Moreover, these investments have increased automation in the fulfillment centers and led to huge volumes of quality content, which along with the strong growth in third party units are positive for gross margins. The increased investment on the AWS side, while initially a drag on profits, has paid off big time.
Amazon has a strong balance sheet, with cash and short-term investments of $15.86 billion. The company added some debt in 2014 at attractive rates that will help it to generate cash for expansion. This led to insufficient interest coverage in 2014 that was completely reversed in 2015 as the AWS business took off. Cash and short term investments are around 26% of total assets and the debt cap ratio (including long-term liabilities) was 55.2% at the end of the last quarter

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on The Marketing Strategy Of Amazon

- In 2015, the U.S. grocery market was valued at $800 billion dollars according to Bloomberg (Soper). It’s no secret that companies are trying to break into this market. Amazon, known for online retailing, has entered the competitive business. Coined as AmazonFresh, the subsidiary looks to boost Amazon’s revenues by delivering groceries straight to households. Currently, AmazonFresh captures 22% of online grocery sales compared to Wal-Mart To-Go’s 13%. First tested in Seattle, AmazonFresh continues to edge its way into the grocery business with a growing number of subscriptions and locations....   [tags:, Online shopping, Wal-Mart, SuperValu]

Better Essays
712 words (2 pages)

Essay about Amazon 's Strategy For Growth

- Amazon’s Strategy for Growth There are certain things that nearly every successful business does in order to stay relevant and expand their business to be incredibly profitable. Many times it means that you will have to evolve your product into something people continue to want, but it also could mean that you may have to offer new products to keep up with the market around us. When expanding your business to foster new growth and reach new markets, opening up a new location is a tool that can be used to help sustain growth and expansion of your company....   [tags: Marketing, Customer service, Cloud computing]

Better Essays
1120 words (3.2 pages)

Marketing Plan For A Marketing Strategy Essay

- Consumers purchase goods to serve their needs and wants. Firms develop offerings to meet customers’ needs and wants. Firms have the choice whether to market to targeted groups of people or all consumers. The targeted, “rifle approach,” has several advantages over the mass marketing, “shotgun approach.” A few of these advantages are that the targeted approach allows firms to focus on most profitable customers, identify early adopters of a product, avoid head-on competition with other firms, and develop new offerings (Tanner & Raymond, 2012)....   [tags: Marketing, Need, Marketing strategy, Customer]

Better Essays
784 words (2.2 pages)

Essay Marketing Strategy : An Essential Component Of A Corporate Strategy

- A marketing strategy is an essential component of a corporate strategy (Bradley, 2015). An appropriate marketing strategy assists a company to identify its target markets and to set measurable goals. It is vital to the success of the organization that a marketing plan is implemented that addresses performance, growth and profitability (Daft, 2015). The aim of this paper is to examine the strategic marketing process with specific emphasis on the key phases of planning, implementation and control....   [tags: Marketing, Marketing strategy]

Better Essays
1095 words (3.1 pages)

Essay on The Tax Strategy of in Europe

- Amazon was founded in 1994 with Jeff Bezos, a former employee of a wall-street investment firm, to sell books online. The company then grow to sell other kinds of goods from clothes to electronic goods, including producing its own line of consumer electronic products Kindle e-book reader. The company started to expand and by 1998 it enter European market by buying online retailers in the UK and Germany and changed their name to and Two years later, it set up a French website   [tags: Amazon Tax Strategy]

Free Essays
1671 words (4.8 pages)

Clorox Portfolio Analysis: Marketing Strategy Essay

- Clorox Marketing Strategy A marketing strategy is an objective driven long-term plan which aims at achieving specific marketing goals. Clorox strategic plan aims at growing its sales volume by 3 to 5 percent annually and this means that the marketing team needs to come up with ways through which the required sales volume will be achieved. According to Benno Dorer, Clorox’s EVP and COO of Cleaning International & Corporate Strategy, the key marketing strategy is the “Always on Principle”, this principle is applied through the digital platform....   [tags: Products, Cost, Strategy ]

Better Essays
946 words (2.7 pages)

Marketing Strategy Of E Commerce Essay

- Xiaomi has shocked the world with their ability to sell high quality, high tech phones for so cheap, but it all comes down to their pricing strategy. Xiaomi’s pricing strategy is based around not having any brick and mortar stores. This reduces many potential costs for them, such as distributing to different stores and wages for employees working in stores. Another surprising strategy that they have found great success in is that they put very little investment into advertising, if any at all. They rely solely on social media and word of mouth to sell their products, and they have built a very large social media following....   [tags: Marketing, Supply chain management, South Africa]

Better Essays
2106 words (6 pages)

Essay on Amazon : A Growing And Trending Brand

- Amazon is a growing and trending brand, giving consumers the unique shopping experience they have always wanted. The company that was started by 1999 man of the year, Jeff Bezos, has taken 44 percent market share in online sales and purchases. ( That makes consumers more inclined to search for products through Amazon, before the well-known search engine powerhouse, Google. The Seattle, Washington based company was started in 1995....   [tags: Jeff Bezos,, Online shopping]

Better Essays
844 words (2.4 pages)

Marketing Plan For A Marketing Strategy Essay

- Retail Industry (I have to talk about the industry in general) Retail involves the process of selling goods or services to customers through multiple channels of distribution to earn a profit. Demand is identified and then satisfied through a supply chain. Attempts are made to increase demand through advertising. The retailing strategy is a marketing plan abstractly designed to offer its products and services in a way that will optimize customer satisfaction. Service quality and marketing mix strategy have significant and positive association on customer loyalty....   [tags: Retailing, Online shopping, Electronic commerce]

Better Essays
2124 words (6.1 pages)

Is e-marketing an integral component of strategic marketing? Essay

- E-marketing is virtually conducting marketing activities through interactive computer-aided systems. Indeed unheard about two decades ago, this sufficiently new field has interested lots of organizations around the world. Enormous multinational corporations, government agencies and other different enterprises have come to position e-marketing as an essential strategic tool. Nowadays many well-built huge companies such as IKEA link their Internet approaches to their more traditional marketing efforts, whereas some relatively new launched businesses as Amazon and Egg have selected for e-marketing approaches more or less exclusively, using all new tech tools as for instance ATMs, retail kiosks...   [tags: Marketing]

Better Essays
2007 words (5.7 pages)