IMC ASSIGNMENT

INDIVIDUAL PART 1 :
INDUSTRY ANALYSIS
Amazon

CLARENCE INACINHO MAZARELLO

201202046
 Amazon
Electronic retailing (e-tailing) is an internet-based sales platform that allows consumers to
purchase and sell products instantly from an online presence without physically inspecting
the goods. This business model is widely used in various domains such as B2B, B2C, B2G,
and C2C. Although this platform creates a more comfortable and convenient way of doing
business, all parties engaged in the business model view it as the most feasible choice for
carrying out their business activities.

The Indian e-commerce industry has been growing at a rapid pace. Having followed a surge
in digital adoption during COVID-19, the Indian e-commerce market is projected to be
valued more than $55 billion in GMV by 2021. Furthermore, the online retail market is
estimated to be 25% of the total organised retail market and is expected to grow to 37% by
2030. It is expected to have a gross merchandise value of $350 billion by 2030.

It is simple to open an ecommerce site on the internet, but taking on an ecommerce

powerhouse like Amazon would be challenging for any firm. Massive expenditures would be
required in storage, distribution, marketing, creating a user-friendly website, customer
support, logistics, and other areas.

Since switching costs in the market are low, it is simple to enter the e-commerce business, as
well as to gain rivals and consumers. However, rivals will find it challenging to compete in
the market due to Amazon's significant investment in brand building and customer
experience. To try and compete with Amazon, any other brand would have to make
significant investments.

As the first major player in the e-commerce market, Amazon has a distinct edge. Amazon
realised that customers can make or break a business, so it put a lot of effort into improving
the customer experience from the start, whether it was by making a more user-friendly
website, reducing delivery times, or allowing customers to return things. Any other company
in the industry will find it difficult to spend extensively on customer experience. In other
words, in the e-commerce market, the time of entrance and client loyalty are important
factors.

Amazon’s target market is middle and upper-class consumers (evenly split between genders)
with home computers or smart devices aged between 18-44. Amazon places a strong focus on
customer satisfaction and strives to provide exceptional value to its customers. Amazon takes
a customer-centric strategy. It ensures that the company's products are of excellent quality
and that they are delivered on time. Because of the fierce rivalry in the e-commerce market,
customers have a lot of leverage. Customers are usually price conscious. If Amazon fails to
give high-quality service at the greatest price, customers will seek for an alternative on the
market. Amazon's advantage is its ability to provide a wide selection of products with
millions of options for its consumers at a low cost and with the greatest customer service.
Any other brand would struggle to achieve this level.

The greatest challenge Amazon confronts is the industry's low switching cost, since
consumers can easily transfer from Amazon to other sellers. Given that Amazon does not sell
unique things and that the majority of its products are retail, providing the greatest customer
experience is a must for the firm.

Because of the simple availability of low-cost competitors, a single unpleasant experience

will drive people away from Amazon. Suppliers have a greater impact in the e-commerce
industry since without them, merchants would be unable to supply their customers. However,
Amazon is the most well-known competitor in this sector and has a significant advantage
over its suppliers. There are numerous vendors who deal with Amazon, but they must adhere
to Amazon's tight standards and regulations. Because there is less rivalry among suppliers,
when Amazon sells a product with a small share of providers, the power suppliers grow
moderately.

Amazon competes against a number of powerful competitors, and the online retail market is
very competitive. Because many merchants, small business firms, and start-ups have begun to
offer their items online in recent years, the number of participants joining the market has
expanded. Myntra, Flipkart, Ajio and others are among Amazon's primary competitors.
Amazon is up against a lot of competition from all of these businesses. Low switching costs
and readily accessible replacements increase Amazon's pressure since customers may easily
switch from one store to another at a low cost. As a result, Amazon invests heavily in
offering high-quality items and services to its consumers, giving it an advantage over
competitors.

Amazon's value proposition is straightforward. They provide the most convenience, the wide
variety, and the most affordable prices. The amazing thing about Amazon is that it offers
goods and services at incredibly low prices without sacrificing quality. Hence targeting
customers who prefer shopping online for convenience, fast delivery, and competitive prices.