Written Assignment Unit 6
Written Assignment Unit 6
Bus: 5114
18/5/2022
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INTRODUCTION
Bezo, the former president of De & Shaw investment bank. Initially the business
began as a small scale business focused on selling books online. With little
knowledge about the internet which was relatively new and limited at that time,
Jeffrey decided to implement its potential into the business optimistic that it would
yield results. Surprisingly, within a short period of venturing into the market,
Amazon became universally acclaimed and recognized for its outstanding service.
The massive success obtained from their books, prompted them to delve into other
sectors like music, electronics etc to provide other streams of revenue and to also
create awareness about their brand to their target audience. (Sadq et al 2018).
So far Amazon has transcended beyond its competitors in the market and continues to
innovations and active use of the internet continue to attract more potential customers
to its brand as well as help them in retaining customers. Nonetheless, its massive
advantages, amazon still has some areas where they are lapses. This case study
focuses on the Amazon’s competitive advantage, how the marketing mix enables their
Analyze Amazon.com using the competitive forces and value chain models
from the research article above. How has it responded to pressures from its
advantage over its competitors. Initially, the company began in 1995 and was founded
by Jeff Bezo, in Seattle. Like most new entrants, Jeffrey had little knowledge of the
internet but relatively through comprehensive research believed that the internet could
be leveraged to help them grow their business. Already, we can see that Amazon
began in a market where competition was relatively low because prior to its success,
there was limited knowledge about the internet.According to the article, the objective
of Amazon is to become a platform where consumers can buy, find and discover any
would be difficult for new entrants to surpass Amazon because of the company's
deliver superior customer service at an affordable rate and time. Additionally, this is
Describe Amazon’s evolving business strategy from the readings above and
your own research. Why did the company change its strategy?
understand the real potential of e-commerce and how the internet retail business
works. It initially began its operation with the aid of the internet which it soon
discovered was its niche. A place that provides unlimited access to customers, is cost-
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effective, efficient, readily available, and easily accessible at any time. Progressively,
Amazon has broken the streak of Apple and Google to become the most valuable
From my own perspective, I believe a strong brand name location also means
company that provides customers with the ability to shop for any product of their
choice at a cheap rate and with speedy delivery. Over the years, Amazon has been
various customers that way Amazon began establishing and building its reputation
and credibility.
stated in the article, one way to achieve value is to listen intently to customers'
friction in the buying process amazon has created new features such as one-click and
4. Economies of scale are the advantages that can occur as a result of increasing the
size of a business. Amazon enjoys economies of scale far beyond its online
competition, and it can use that power to offer hyper-aggressive prices and fast, cheap
shipping.
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Diversification allows customers to have more preferences to choose from and also
provides other streams of income for the company. if done rightly, diversification can
services, a company can protect itself from competing companies. (corporate finance
institute.com, n.d.)
There are a few strategies Amazon has been known to employ in diversification.
Predominantly, they focus on their customer's priorities and how to deliver them with
ease. Bob Cut Editors (2022). Secondly, Amazon uses a cost leadership strategy that
cheaper rate to customers. Also, its website is easily accessible by customers with
features like past purchases, search queries, most viewed items, customers review,
and Amazon ratings, all these tiny details in its website have succeeded in winning
customers’ loyalty and trust. Nonetheless, Amazon also has a customized delivery
option called“Amazon Prime”. Bob Cut Editors (2022). Although these products may
be relatively similar to that of their competitors. Using intricate technology for swift
delivery, organization, packaging of items, and selling at a low price could be good
leverage the company has over its competitors. Amazon's competitive advantage also
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varies with the product because some product's performance outweighs those of
Product Marketing is based upon the five P’s (Product, Place, Promotion, Price,
and Profit). Discuss the Amazon.com approach to each and how this contributes
to competitive advantage.
Products: Amazon is the largest online retail shop that sells a variety of products
to customers. Initially, it began as an online book store and expanded over time to
various segments in other to meet the needs of the different target audiences.
Most of their products can be purchased directly from Amazon or through a third-
party agent. Hence delivering offerings that are not tawdry or of inferior quality
but are consistent would help to increase customer retention, generate referrals,
ease and without friction. Since the internet is easily accessible through laptops,
tablets, and phones. Customers can swiftly make their purchase and without
hesitation, it would be delivered to their doorsteps. This indicates that the place a
proximity to where its target audience is situated, The company would generate
more profit compared to its competitors who may be some distance away. MBA
coupons on sales. They also offer exclusive services like the Amazon prime free
shipping on delivery to spur customers to buy more. MBA Skool Team (2021)
Price - As stated earlier, Amazon sells products at a relatively low price and still
retains the quality of these products. As humans, we are attracted to things that
are affordable thus this would definitely arouse our interest. MBA Skool Team
(2021)
economy where everything keeps evolving the way we communicate and run business
in the past is utterly different from how it is currently. According to what I've learned
from disruptive innovation, a new entrant might emerge just like Tesla did in the
automobile industry, creating electric vehicles for a sustainable environment. This has
changed our perspective on cars as other companies like Google have begun
experimenting and creating self-driving cars. Therefore, it's plausible that a new
entrant might emerge and plunge down Amazon’s long-lasting streak in the e-
commerce industry at any time hence change is constant but structural change is
imperative and companies must continue to take risks and adopt new measures or
References
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competitive-analysis/
MBA Skool Team (2021). Amazon Marketing Strategy & Marketing Mix (4Ps).
https://www.mbaskool.com/marketing-mix/services/17022-amazon.html
https://www.kabbage.com/resource-center/grow/brand-positioning-what-it-is-
and-why-its-important/
https://corporatefinanceinstitute.com/resources/knowledge/strategy/product-
diversification/
Sadq, Z. & Nuraddin, S., & Hama, S.. (2018). Analyzing the Amazon success
10.5937/jouproman6-19264. Retrieved
from https://www.researchgate.net/publication/328689933_Analyzing_the_Amazon_s
uccess_strategies