Amazon analysis

Topics: Publishing, Amazon River, Change Pages: 9 (1703 words) Published: April 28, 2014


Organization project

STP analysis

Market segmentation:
Demographical segmentation – according to the world statistics people that reads the most books are: Gender: Female 53%, Male 42%
Age: 18-19 (40%), 30-49 (47%), 50-64(51%), 65+ (47%)
People that use computerized technologies mostly are people under age of 60, and most people that use internet in their life`s are people under age of 50. Psychographics segmentation – people for whom buying e-books is more practical are people with an active lifestyle. E-books are for people who enjoy reading and don’t pay attention if they are reading from physical or digital material. People who are paying attention on money spending prefer e-books as those are cheaper (instead of paying 25$ for a hard copy but 10$ for a digital copy). Behavioral segmentation – if we look from a behavioral perspective typical customers for Amazon are who prefers online shopping. In this case customers who are less brand value interested.

According to the market segmentation facts we can say that the main target groups are males and females on the age segment from 18-49 years of age. The reasons why these target groups are simple: mainly because of the usage of technologies, lifestyle (easy and fast) and the social class (cheaper/affordability).

Amazon can present their books as the price leaders as e-books are much cheaper. We can consider that Amazon is the market share leader as its most known online shopping system.

SWOT analysis

Number 1 online shopping system;
Market share leader;
Price leaders;
Shipping world while;

Low brand value;
Lack of literature in case of the “boycott” ;
Low market share according to elderly people;
Using Amazon Inc. as publishers so writers would reach a bigger selling range; Gain trust not only as online shopping system but collaborate with bookshops; Collaborate with more technology brands;

Writers will massively join the “boycott”;
Threat from the side of Apple Inc.;

Amazon is struggling to enter the publishing market, it is not as much about entering the market but about the boycott that the other book seller or retailers are throwing against Amazon, they do not want to sell their stuff or have in their stores. Even some of amazons products were pulled of the stores while others stayed, just because the Amazon is a big competitor and others are afraid of it.

Kotter`s 8 step plan
Establishing sense of urgency
They need to break through in publishing industry, because it would give them more profit and cut their expenses plus a lot of their competitors would be in the bad shape

Form a guiding team
They have already done this part but maybe they should change some people to get new ideas

Create new vision
I don’t think they need to change their vision too much, but they might concentrate it on the books little bit more again

Communicate the vision
Communicate it with employees that they should focus more onto books in this stage

Empower others
Hire some agencies to tell the publishing department what they might improve, show them what is right, what might be wrong

Create and reward short term wins
The authors of the books that will sell most copies in one month will get some preemies To establish some goal which will be richen by some given time

Consolidate results and create more change
When they finally will start have a better number of sales they can start buying more rights and...
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