Case Study of Amazon

Topics: Marketing, Electronic commerce, Pages: 12 (2996 words) Published: March 10, 2013

Synopsis of Case Study

Amazon provides an array of products and services to businesses and individuals worldwide. As an online retailer and third-party, Amazon‟s products range from books and music to furniture and clothing. This e-business operates under several business models, all of which are designed to capture and retain customers while keeping up with evolving technological customer demands.

Amazon‟s online retail services allow businesses to sell their products on the same platform as the Amazon retailer, After creating an account, businesses are able to upload their product inventory, sell their products and capture their payments online. Amazon payment options are available. Sellers also have the option to utilize Amazon‟s Web store, which allows the sellers to capture the benefits of search engine optimization and backend organization. Amazon offers an affiliate program that allows businesses to earn income by advertising Amazon‟s products and its online retailers. The business earns a referral fee when consumers purchase Amazon items after clicking on the affiliate‟s advertisement link. In 2011, Amazon released its self-publishing site. This e-business site allows writers to selfpublish and sell their books, movies and music online. Writers must copyright their pieces prior to publishing. The self-publishing options include advertisement and payment solutions that mirror the Amazon retailer options. Amazon provides free publishing options and captures its earnings through small shipping fees and royalty payments.

Amazon‟s fulfillment program allows businesses to store and ship their products from Amazon‟s fulfillment center. Businesses send their products to the Amazon fulfillment center, and the items are cataloged into Amazon‟s system. Businesses can sell their products through or complete the sales through their own methods. When items are sold, Amazon fulfills the orders and ships the products directly to the business‟s customers. Businesses are able to track the fulfillment through the Amazon back office system.

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Background of the company has a leading edge in the e-commerce world. It has a strong competitive advantage. However, as with many online retailers, there are certain aspects of conducting business over the web that create difficulties and the need of marketing planning. This marketing plan consists of environmental scan, customer behavioral patterns, current segment market, marketing strategies and recommendations in strategies. is the largest online retailer. The company opened its virtual doors in July 1995 by Jeff Bezos in Seattle. Since then it has enjoyed rapid expansion in all aspects of its operations, including business turnover, and a spectacular rise in share value since public floatation in 1997. sells only on-line and is essentially an information broker. has constantly growing database of over 12 million customers in more than 160 countries. is the place to find and discover anything customers want to buy online. They have earth's biggest selection of products, including millions of books, free electronic greeting cards, online auctions, videos, CDs, DVDs, toys, games, electronics, kitchenware, computers, and more.

In term of the competitive position, is the biggest on-line international retail store in the world - Strong in-house internet technology with excellent offline customer services - A huge database of loyal customers - base of over 12 million shoppers - The company has grown to a massive online superstore with recent sales of $1.64 billion in 1999, an increase of 270% from the previous year's sales - has a very powerful position in the media industry.

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Question 1

Amazon currently...
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