How does Amazon.com create value for its customers? How has its approach to creating value changed since its founding?
Amazon creates value for its customers by offering customer satisfactory services by managing retail operations with efficient use of technology. Operational efficiency is the strength of Amazon.com and supports the management to maintain its competitive advantage and enhance corporate performance.
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 was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers
Who are Amazon.com’s competitors and how has it created its competitive advantage?
Place tactics as part of the eMarketing Mix.
The eMarketing space consists of new Internet companies that have emerged as the Internet has developed, as well as those pre-existing companies that now employ eMarketing approaches as part of their overall marketing plan. For some companies the Internet is an additional channel that enhances or replaces their traditional channel(s). For others the Internet has provided the opportunity for a new online company.
New Internet companies.
These companies only trade on the Internet.
New online retail brand e.g. Amazon, Lastminute.com - Essentially these companies could not have been conceived without the creation of the Internet. New companies sprang up as the Internet began to be adopted. Entrepreneurs were investing heavily in all sorts of start-ups. Some were successes, most were not. [pic] New online manufacturer brand e.g. Dell.com - Entrepreneurs saw opportunities for developing online manufacturers' brands that took advantage of online technologies that enabled innovative new products to be adapted to customer preferences, and by using IT to enable efficient and effective operations such as assembly and logistics. Online Auction e.g. eBay. In common with new online retail brands, before the emergence of Internet technologies, this concept was not possible. Essentially eBay is a Consumer-to-Consumer (C2C) business. For more information on how online auctions work, see the lesson on eMarketing and price. Pre-existing companies that have adopted eMarketing.
These are traditional companies that trade on the Internet.
Banking and financial Services e.g. HSBC Bank. Banks and financial services have benefited tremendously from the popularity of Internet usage. There is a mixture of new online banks and traditional banks, both offering online banking services. Essentially banks no longer need to invest in high cost, high street selling units i.e. old fashioned town-based banks. Labor costs have also been reduced since much of the traditional banking bureaucracy is done using IT, and the use of overseas call centers has meant that salaries are much lower. Software also means that customers can be retained by using Customer Relationship Management (CRM) eMarketing approaches. [pic] Existing online retail brand e.g. Wal-Mart, took advantage of this new mode of distribution by extending products and services to consumers via the medium of the Internet. eMarketing enhances their traditional marketing. Direct distribution channel e.g. New York Yankees' shop. Organizations have access to consumers worldwide. So brand loyal consumers such as sports...
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