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Amazon.Com Essay, Research Paper
Marketing Outline
I. Current Situation
A. Current Goals and Objectives
1. Improve customer relationships
2. Expand products and services
3. Expand overseas
4. Expand partnerships
5. Profitability in every Amazon.com business
B. Current Strategies
1. Partnerships
2. Media and target advertising
3. Affiliate program
C. Current Policies
1. Privacy
2. Pricing
3. Return
II. SWOT Analysis
A. Strengths
1. Leading online bookseller
2. Leading online music retailer
3. High profile online partnerships and alliances
4. Strong market position in non – media products
B. Weaknesses
1. Buying products online is impersonal
2. Waiting for product delivery
3. Inability to make a net profit
4. Company overgrowth
C. Opportunities
1. Large growing market
2. Global appeal
3. Partnership possibilities
D. Threats
1. Partnerships failing
2. Governmental internet regulations
III. Alternatives
A. Do nothing
B. Further expand partnerships
C. Global expansion
D. Discourage further growth
E. Eliminate partnerships and return to original focus ( books)
F. Upgrade merchandise
G. Establish physical stores
IV. Recommendations
A. Further expand partnership
B. Upgrade merchandise
C. Global expansion
V. Implementations
A. Form synergistic alliances with Nordstrom and Nike
B. E – books
C. Expansion into Japan
VI. Evaluation and Control
A. Customer feedback
1. E – mail
2. Chat rooms
B. Company feedback
1. Track sales growth
2. Track repeat customers
VII. Bibliography
VIII. Appendix
A. America’s Growing Market Opportunity
Current Situation:
Amazon.com is an online retailer that has created a business unlike any other. It services over 17 million customer accounts in over 150 countries. Amazon.com sells many types of items in many different categories; books, music, videos, video games, toys, and DVDs are just a few. Many e – commerce companies have established a strategic commercial relationship with Amazon. This company has an obviously large marketing opportunity along with a large customer base. It is a great brand with a distinguishing reputation. However, every retailer needs its share of improvement and Amazon.com is certainly no exception. (Amazon.com, Inc)
Current Goals and Objectives:
In the year 2000, Amazon.com has five important marketing goals. These goals consist of improving customer relationships, expansion of products and services, expansion overseas, expansion in partnerships, and profitability in all Amazon businesses.
Amazon.com will continue to invest heavily in building relationships with new customers. Customer obsession is the key focus at Amazon. With fierce competition like Barnes & Noble, Amazon.com must be on its toes. The competition is run by well – funded, smart, and aggressive people. There will be nothing to worry about if the competitors stay focused on Amazon and Amazon stays focused on the customer. There are three main factors that matter most to customers: selection, ease – of – entry, and price. Amazon.com will make sure it continues to be the best in those three areas. By doing so, Amazon will be better than its competitors and have greater customer appeal. (Amazon.com Investor Relations), (Bezos, A Bookstore )
Amazon.com will build a place where customers can locate anything anywhere. Anything anywhere refers to products and services. Product and service expansion is important, as the company becomes increasingly well known to a wider customer base. Expansions of products and services will also encourage repeat customers. As long as people keep coming back to purchase new types of merchandise, Amazon.com will make money. (Amazon.com Investor Relations)
Overseas expansion has become a successful business move for many companies. Amazon’s international businesses are bringing in more profits than it’s United States businesses. As previously stated, Amazon.com has been selling merchandise and has vast customer accounts in over 150 countries. This puts it in a position as a leading global retailer. It has sales, brand, and customer appeal all over the world. So far, Amazon.com has two established online websites in Europe. One is in the United Kingdom and the other one is in Germany. Both are the number one e – commerce sites in their respective countries. Surely there will be many new sites in other foreign countries in the future. There is a new site that just opened in France. Based on our research, we believe there is also potential for new sites in Japan, Italy, and Spain. With no pricing pressures in these foreign markets, these sites have more profit potential than those in the United States. Amazon’s goal of expanding overseas should greatly benefit the company. (Upbeat Analysis Day, Morgan Stanley), (Amazon.com Investor Relations)
Amazon.com’s partnership ventures have been successful in the past so the company hopes to continue that success. Amazon has always had partnerships with companies that are much like itself. These companies, like drugstore.com, gear.com, and ashford.com, provide an enjoyable shopping experience. They provide a large selection and great customer service, just like Amazon. Because of the success of these partnerships, Amazon has acquired some high – margin revenue. Effective partnerships have been proven to greatly enhance a business and we plan to keep Amazon expanding and moving in the right
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