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Evaluate and explain the Innovative Business Strategies of Amazon
Introduction of amazon company
Amazon case study and answers
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WHAT IS AMAZON?
Founded by Jeff Bezos on July 5th, 1994, Amazon.com, Inc. is the largest internet retailer in the world in terms of its revenue and market capitalization. Headquartered in Seattle, Washington, Amazon has dozens of offices in more than 30 countries around the world. Amazon is the fourth most valuable public company and the largest internet oriented company by revenue in the world with its revenue for the year 2017 being US $177.86 Billion.
Originally known for offering books through its website, Amazon has developed a client service, stock, and shipping empire that allows it to offer everything from clothes to garden furniture to janitorial supplies. In addition, Amazon offers a wide range of digital content like movies, music
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Amazon’s Facebook page has a product listing of Retail and Consumer Merchandise, which is used to market their own products and highlight deals, competitions and offers to their consumer community. These ads are optimised to coincide with relevant events and holidays, providing enticing and valuable content for their customers.
Amazon also has specific Facebook accounts related to their products, such as Prime Video. These accounts are more or less similar to Amazon’s main account in drawing attention to relevant products and offers in order to increase intrigue, drive engagement through reach and ultimately gain sales.
Twitter
By the uses Twitter, Amazon understands how Social Media is not just a marketing tool but can also be integrated directly into e-commerce. Amazon has invested in allowing users to send items to their shopping basket directly from Twitterby responding to product tweets with the hashtag #AmazonCart. Moreover, Amazon had a dominant grip on both B2C and B2B, which reflects on their Amazon Web Services (AWS) Twitter
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Amazon share pictures of its products without any explanation for why people should buy the products. Vibrant and contrastive pictures attract people to the products which might go unnoticed if they are in some normal presentation, Pinterest helps Amazon do that.
Other Social Media Channels
Amazon Inc. remains very active on many other Social Media channels, investing a lot of its time into network-specific content. For instance, on Snapchat they provide Snap Deals – exclusive, one-off style offers that lend themselves perfectly to the network. On Instagram they focus on visually attractive content and products that doesn’t seem out of place, alongside a tremendous amount of pictures of animals playing around on Amazon boxes. They are well aware of the fact that animals are appealing and shareable, therefore they Instagram to increase their brand reach.
RECENT DEVELOPMENTS:
In the past several months, Amazon has partnered with several micro and macro influencers to promote a variety of its latest services, including Audible, Audible Canada, Amazon Fresh, Prime Day, and Prime
History”, n.d.). But the unbelievable pace at which Amazon added new products and new customers proved to be a formidable barrier for any competitors. Within the first 10 years Amazon accomplished an unbelievable feat; it had 49 million customers and 6.9 billion dollars in revenue, and it had done so by selling some products at a loss to build market share (Rivlin, 2005). At times it was difficult leveraging so much capital to grow market share, but Jeff Bezos’ focus on the customer and long term growth of the company proved to be the real reason Amazon didn’t fall prey to the .com bust like so many other internet
Amazon was founded in 1995 by Jeff Bezos and became one of the first major companies to sell goods over the internet
Amazon.com is publicly traded company, meaning its stock is accessible to the public (Amazon Inc., 2013). A company that is public deals with the uncertainty of the market but must try and sustain loyalty. If stockholders are not able to trust in the company they feel their stock is jeopardized. When the corporation is able to focus on keeping the stockholders happy then their price per stock in turn soars. The investors will have to pay more money per stock, increasing the revenue of the company. Currently, Amazon stocks on average can be purchased at $350 a piece, a relatively high value (Amazon Inc., 2013).
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 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).
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
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). Amazon significantly extended its product offer and currently is one of the leading online retailers in the world with several international websites and customers in over 200 countries.
Amazon.com (AMZN: Nasdaq) was founded in 1994 by Jeff Bezos, the “head” of the company and a visionary. He has remained the chairman, president and Chief Executive Officer of the company since its beginning. Bezos graduated summa cum laude (3.85-4.00 GPA) in electrical engineering and computer science from Princeton University. After graduating, he worked in the computer field on Wall Street, built an international trade network for a company called Fitel, became the vice-president at Bankers Trust and later, the vice-president of D. E. Shaw & Co, a global investment management firm. After acquiring a wide knowledge about internet-based retailing and its regulations, Bezos moved to Seattle and opened his first company: Amazon.com. Within two months, Amazon's sales were up to $20,000/week. His talent and dedication took Amazon.com to the leading position of world’s largest e-commerce company and top model in Internet sales. Just in the last two years, Bezos has been nominated Businessperson of The Year by Fortune in 2012, one of the wealthiest people in the world (with an estimated net worth of $28 billion) by Bloomberg Billionaires Index and the second best CEO in the world by Harvard Business Review, both in 2013. Bezos developed a fascination with space travel and created the startup Blue Origin in 2000. The aerospace company, that had an exponential growth since its beginning, intends to expand space tourism with lower cost trips and develop life in space. Constantly expanding his business involvement, Bezos got into the media as well by purchasing The Washington Post newspaper in 2013.
Amazon is the world’s largest retailer online. Founded in 1994 it has started as an online bookstore but soon expends its catalog with software, video games, electronics, furniture, food, toys etc.
Jeffrey Bezos, the founder and current CEO of Amazon.com, initially started the company as an online bookstore in 1994. Within several months, Amazon spread its operation to all 50 states and abroad. Presently, customers from over 45 countries buy at Amazon. Over a short period of time, the company expanded sales to electronics, video games, software, CDs, DVDs, MP3 downloads, food, furniture, apparel, jewelry, and toys. Today, the company even produces its own products such as the Kindle series. Also, Amazon.com is one of the major providers of cloud computing services. Currently, the company is the largest global online retailer responsible for 20% of online retail market share.
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.
From the consumer side, Amazon provides services like Amazon Prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the Kindle library, everything for an annual
(http://www.forbes.com/sites/onmarketing/2014/02/04/six-trends-that-will-shape-consumer-behavior-this-year/) Technology has allowed Amazon to give the consumer the experience that it does. The site is able to tell you what you want. The taste has been taken away from the consumer. It is these powerful algorithms that allow Amazon to suggest products you may enjoy, just by the study of your online habits. It does make sense when you think about it. If a consumer has a puppy, and goes online all the time looking for the best dog food for that kind of puppy, Amazon will be able to offer that food. It is like shopping in a personalized marketplace, a place that is made to meet your specific needs. There are also many features provided to you when you show your commitment to Amazon. One of these services is Prime Music, a music service offered to Prime Members. “In designing Prime Music, we wanted to remove the barriers between you and the music you love. We removed cost. You can listen to the entire Prime Music Catalog for free – it’s included in your Prime membership. We removed interruptions. Don’t worry about have your music constantly disrupted by ads…you won’t hear any. We removed listening restrictions. Choose exactly what song to listen to, repeat your favorite song over and over again, or download music to your phone or table to listen offline,” wrote CEO Bezos in his letter to Prime members.
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.