In the early 1900’s, the dot-com boom drastically changed the landscape of
communications of regression. For new businesses, effective innovation offered a great potential
through the World Wide Web. Growing popularity of Internet access created an inspiring
logistical niche later popularized as “E-commerce”, proving to be a successful means of
purchasing products through the Internet, Jeff Bezos, founder of Amazon.com Inc was the first to
profitably innovate in this emerging market. Amazon’s popularity is widespread around the
globe. It has over 310 million active users and 100 million subscribers worldwide. Being the
world’s leading online retailer, Amazon bags many achievements, eye-popping profits, and
successful launches.
Amazon.com is in rapidly changing industry, search and development has constantly
gained competitive advantage for the company. Amazon invests in several areas of technology,
including digital initiatives, seller platforms and web services. Recently, Amazon released an
iPhone application that allows uses to scan a bar code of product in retail store directly connect to
Amazon. Com. Consumer could use this new app easily compare the price in Amazon.com to
physical store.
Amazon’s marketing strategy is designed to increase customer traffic on the company’s websites,
to promote repeat purchases, to build awareness of products and services that are available, and to
strengthen the Amazon.com. Company managers will keep focus on continuous innovation and
ensure fast and reliable fulfillment for its customers. On other side, company also adopted many
market programs to increase the customer’s loyalty and grab newer user’s attention. Generally,
Amazon marketing strategy is based on the following principles:
Amazon 7ps of marketing: mainly focuses on product and place elements of the marketing mix.
Offering more than 480 million products in the USA alone, Amazon product range is the widest
among online and offline retailers. Moreover, the company is able to offer its products for
competitive prices due to massive cost savings based on online nature of business operations.
Amazon segmentation: targeting and positioning practices are associated with targeting the
widest customer segment. The retail giant does this with the application of multi-segment,
adaptive and anticipatory positioning techniques.
Amazon’s unique selling proposition: integrates the widest choice of products and services
offered at competitive prices, fast delivery and exceptional customer service. The e-commerce
giant places these unique selling propositions at the core of its marketing communication
messages.
Amazon marketing communication mix: integrates print and media advertising, sales promotions,
events and experiences, public relations and direct marketing. The company places a particular
focus on print and media advertising and sales promotions elements of the marketing
communication channels.
Amazon is a tech giant and is only continuing to grow however few controversies have caused a
dent in Amazon’s brand image. Government regulations can also threaten the business proceedings
of Amazon in some critical countries. Amazon does not ship to Cuba, Iran, North Korea, Sudan,
and Styria. Increasing cybercrime can affect the network security system of the
company. Aggressive competition with big retail firms like Walmart and eBay can give Amazon
a tough time in the future. Imitation is easy as many new entrants are coming up in the market
usually with the same business model of Amazon.
Interestingly, despite the size and the scope of its business, Amazon does not release an annual
sustainability or CSR report. Official website of the company remains as the only source of
information about the range of sustainability programs and measures initiated by the company.
Moreover, Amazon’s first sustainability executive Kara Hartnett Hurst was appointed only in
August 2014[1] as an indication that CSR aspect of the business has not been paid due attention to
for a long period of time.
Amazon ranked #1 in 2017, third year in a row in Annual Reputation Quotent released by Harris
Poll.[2] The two major areas where Amazon has improved its social responsibility significantly
are packaging improvements and renewable energy commitments.
There a few recommendations that Amazon can implement to ensure their business model still
does well for years to come.
1. Prime as the front runner: Amazon Prime was first framed as an incremental
improvement in its value proposition, in the form of free shipping. That has since evolved
into the linchpin of the Amazon empire. Jeff Bezos claims that Prime has over 100
million subscribers, making it the most successful loyalty program of all time. Amazon
will only magnify its use of Prime as a barrier to entry.While sellers of everything from
throwaway fashion to antiques prefer independent, direct-to-consumer channels, Amazon
is the 800-pound gorilla. Sellers complain about their inability to control MAP (minimum
advertised price). It's for this reason that companies are pursuing their own dot-com
sites where they control distribution. Leveraging Prime should be central to the
strategy for any new providers entering the market.
2. Among the most astonishing of its patents is the creation of an "airborne fulfillment
center" where products will be delivered by drone from a blimp line contraption. Holy
crap, George Jetson. Amazon will find ways to embed technology into third-party
logistics (3PL) and freight businesses much in the way it has with Whole Foods. Amazon
is already putting tremendous pressure on the supply chains of its competitors, setting
expectations that products be delivered within 48 hours. Ecommerce providers are
building networks in efforts to satisfy coast-to-coast demand. Amazon Go stores are
like test kitchens for stores of the future, void of almost any labor. There is tremendous
opportunity for technology partners who can develop retail technology.