0% found this document useful (0 votes)
116 views1 pageAmazon Business Strategy Tips
Amazon is one of the biggest names in e-commerce. In 2015, it took the title of being the most valuable retailer in the U.S. by market capitalization. It is also considered as the largest Internet company by revenue. The Seattle-based company is taking the market by storm and everybody have been asking, how do they do it? What is Amazon's secret? And the answer is, it’s all in the strategy. Here's an infographic to lay down some of the tips.
1. Segmentation, targeting, and positioning.
To segment their market, e-commerce giants use demographic and psychographic segmentation. These segmentations are based on the actual purchase behavior and not what are interested in. It is done in micro-level and targets individual consumer. This allows Amazon to convert visitors into high-value customers that commit long-term.
2. Competitive advantage.
Amazon aims to differentiate itself thus they adopt IT and e-commerce startups (audible.com, IMBD.com, pet.com, Zappos.com, etc). This has enabled them to serve their customers with latest technologies of their partner companies at a low cost. Economies of scale are also achieved through extensive product offerings such as electronics, apparel, DIY, and a lot more.
3. Marketing strategy.
Amazon’s BCG Matrix works this way. Products that have high growth rate and high market share (electronics and durable products) for the company takes the place of being the stars. Those that give maximum margin are cash cows (Amazon Prime, e-books, and movies). Obsolete and low-demand products (VOD, Amazon web services, and Kindle) are question marks.
4. Distribution strategy.
What the customers want is a fast delivery of their goods. This is what the company had realized. So to quickly serve the customers, ‘under the tent’ strategy is put into practice. Existing vendor warehouse spaces are being used for consumer-packaged goods. Amazon’s distribution system is an aggressive infiltration of warehouses strategy that improves their distribution line. Now the company has 55 fulfillment centers beyond 43 million square feet.
5. Brand equity.
From an e-book provider to the largest e-commerce company. And with the growing company, a brand is set to represent it. A brand is like a person’s reputation, the more you do hard things the more you gain it. Ever since then, Amazon had invested on promotions and advertising to strengthen their brand equity. By 2015, the brand worth had skyrocketed to over $176 billion.
6. The Amazon way.
Most big companies have risen into power by inventing a new product or service but that is not the case with Amazon. Then how did it get to the top? They systematically take down an entire existing industry. In the world of technology, Amazon engineers are no extraordinary geniuses but they are good. Amazon still wins at the end of the day.
7. Swimming with the sharks.
Synchronization of action across all fronts, it’s a key feature of the company. Amazon opens various fonts against an industry. Not all at once but slowly until they surrender rationally at a controlled rate. Opponents are faced with coordinated multi-front war. It turns enemies into allies without the fight.
8. The game mind.
Amazon is a skilled chess player that took down the book industry. They operate with a game mind, figuring out what game to play against which opponent. When everything is set, the company is aligned entirely so it has the capacity to play it better than anybody else. And effortlessly, they won even before the game starts.
9. An Achilles heel.
Deconstructing Amazon’s playbook and its set of principles lead to understanding and new insights. One will be impressed. Does this company even have a weak point?
source: https://www.prospershow.com/amazon-business-strategy-tips-infographic/
Uploaded by
ProsperShowCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
116 views1 pageAmazon Business Strategy Tips
Amazon is one of the biggest names in e-commerce. In 2015, it took the title of being the most valuable retailer in the U.S. by market capitalization. It is also considered as the largest Internet company by revenue. The Seattle-based company is taking the market by storm and everybody have been asking, how do they do it? What is Amazon's secret? And the answer is, it’s all in the strategy. Here's an infographic to lay down some of the tips.
1. Segmentation, targeting, and positioning.
To segment their market, e-commerce giants use demographic and psychographic segmentation. These segmentations are based on the actual purchase behavior and not what are interested in. It is done in micro-level and targets individual consumer. This allows Amazon to convert visitors into high-value customers that commit long-term.
2. Competitive advantage.
Amazon aims to differentiate itself thus they adopt IT and e-commerce startups (audible.com, IMBD.com, pet.com, Zappos.com, etc). This has enabled them to serve their customers with latest technologies of their partner companies at a low cost. Economies of scale are also achieved through extensive product offerings such as electronics, apparel, DIY, and a lot more.
3. Marketing strategy.
Amazon’s BCG Matrix works this way. Products that have high growth rate and high market share (electronics and durable products) for the company takes the place of being the stars. Those that give maximum margin are cash cows (Amazon Prime, e-books, and movies). Obsolete and low-demand products (VOD, Amazon web services, and Kindle) are question marks.
4. Distribution strategy.
What the customers want is a fast delivery of their goods. This is what the company had realized. So to quickly serve the customers, ‘under the tent’ strategy is put into practice. Existing vendor warehouse spaces are being used for consumer-packaged goods. Amazon’s distribution system is an aggressive infiltration of warehouses strategy that improves their distribution line. Now the company has 55 fulfillment centers beyond 43 million square feet.
5. Brand equity.
From an e-book provider to the largest e-commerce company. And with the growing company, a brand is set to represent it. A brand is like a person’s reputation, the more you do hard things the more you gain it. Ever since then, Amazon had invested on promotions and advertising to strengthen their brand equity. By 2015, the brand worth had skyrocketed to over $176 billion.
6. The Amazon way.
Most big companies have risen into power by inventing a new product or service but that is not the case with Amazon. Then how did it get to the top? They systematically take down an entire existing industry. In the world of technology, Amazon engineers are no extraordinary geniuses but they are good. Amazon still wins at the end of the day.
7. Swimming with the sharks.
Synchronization of action across all fronts, it’s a key feature of the company. Amazon opens various fonts against an industry. Not all at once but slowly until they surrender rationally at a controlled rate. Opponents are faced with coordinated multi-front war. It turns enemies into allies without the fight.
8. The game mind.
Amazon is a skilled chess player that took down the book industry. They operate with a game mind, figuring out what game to play against which opponent. When everything is set, the company is aligned entirely so it has the capacity to play it better than anybody else. And effortlessly, they won even before the game starts.
9. An Achilles heel.
Deconstructing Amazon’s playbook and its set of principles lead to understanding and new insights. One will be impressed. Does this company even have a weak point?
source: https://www.prospershow.com/amazon-business-strategy-tips-infographic/
Uploaded by
ProsperShowCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
