Amazon's Repositioning Strategy

Discuss what you think of Amazon's repositioning and differentiation

strategies.

In their 20 years in business, Amazon has been able to prosper and uphold a
successful place within the world of e-commerce and online retail (Hobbs, 2015).
Their success is derived from being customer-focused and attending to the needs
and wants of their target market. Amazon has created two significant repositioning
and differentiation strategies that will enable them to achieve great competitive
advantage. For companies like Amazon whom have operated for a long period of
time, brand repositioning is important due to ever-changing consumer behaviour,
thus Amazon is enabling themselves to stay relevant and resonate with their
audience. I believe that Amazon has also been able to put themselves ahead of
many e-commerce companies by delivering innovative ideas such as Amazon Prime
subscription that provides premium benefits to members on this service such as free
shipping and exclusive shopping deals.

Do you think they are giving Amazon a long-term advantage?

Yes, Amazon has given themselves great long-term advantage within the e-
commerce industry, especially with the rise of various challenges such as overseas
competitors such as Alibaba, in the midst of their operation (Hobbs, 2015). They
have been able to utilise the opportunity for brand repositioning with premiumisation
as to the launch of Amazon Prime. By offering special perks and benefits to their
consumers, Amazon reduces the risk of being traded for a brand substitute by
providing exclusivity and make consumers feel ‘special’, which is important to
implement in a competitive market (Nucleus, 2019).

What advise would you provide to Amazon to stay ahead of its competition?

I would advise Amazon to continue focusing on connecting with current and new
consumers by focusing on the upcoming trends that satisfy consumers preferences.
It is advised that Amazon continues to maintain their customer loyalty and find ways
to expand and improve their premium subscription on Prime so consumers don’t feel
the need to switch to a substitute e-commerce brand. Amazon should strategically
create innovative ideas to accordingly meet the changing consumer expectations
and continue to take risks and “try new things” (Hobbs, 2015).

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