INDIVIDUAL ASSIGNMENT

(Lazada vs Amazon)
PRE-DIPLOMA (COMMERCE)
BA003

FACULTY OF BUSINESS MANAGEMENT

(MGT028)

PREPARED BY :

ANIS SUHAILI BINTI AYOB

(2023191779)
(KBA0021A)

PREPARED FOR :

MS. NUR DIANA BINTI HASSAN

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 TABLE OF CONTENT

1.0 INTRODUCTION 3-6

2.0 CONTENT 7
2.1 STRATEGIS 7 - 10
2.2 IDENTIFY LESS SUCCESFUL 11 - 12
3.0 RECOMMENDATIONS 13 - 14
4.0 CONCLUSION 15
5.0 REFERENCES 16

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1.0 INTRODUCTION

LAZADA

Lazada is a leading e-commerce platform that operates primarily in Southeast Asia.

Launched in 2012, Lazada has quickly become one of the most popular online shopping
destinations in the region. It offers a wide range of products in categories including
electronics, fashion, beauty, home and living, and more.
Lazada aims to provide a seamless and convenient online shopping experience to its
customers. It focuses on localizing its services and offerings to cater to the specific needs
and preferences of Southeast Asian consumers. With operations in countries like
Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, Lazada
understands the diverse market dynamics and strives to offer a tailored experience in
each country.
One of the key features of Lazada is its marketplace model, which allows third-party
sellers to list and sell their products on the platform. This gives customers access to a
wide variety of products from both local and international brands and sellers. Lazada also
offers buyer protection and secure payment methods to ensure a safe and reliable
shopping experience.
Lazada frequently runs promotions, flash sales, and special events like the Lazada
Birthday Sale and 11.11 Sale (also known as Singles' Day) to offer attractive discounts
and deals to its customers. It also has the LazMall, which is a dedicated platform for
authentic branded products.
In recent years, Lazada has continued to expand and innovate its services. It has built a
strong logistics network to ensure fast and reliable delivery, and it offers multiple payment
options including cash on delivery, online banking, credit/debit cards, and e-wallets.

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Overall, Lazada's focus on localization, wide product selection, competitive pricing, and
customer-centric approach have contributed to its popularity and success in the
Southeast Asian e-commerce market

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AMAZON

Amazon is the largest and most well-known online marketplace and retailer in the world.
Founded by Jeff Bezos in 1994, the company began as an online bookstore before
expanding to offer a vast range of products, including electronics, clothing, home goods,
books, and much more.
What sets Amazon apart is its customer-centric approach and its commitment to providing
a seamless online shopping experience. The company's mission is to be the "Earth's most
customer-centric company," driven by innovation, technology, and a relentless focus on
customer satisfaction.
Amazon offers global services, with operations in numerous countries, making it
accessible to customers around the world. Its platform allows third-party sellers to list and
sell their products alongside Amazon's own inventory, creating a vast and diverse
marketplace. Customers can choose from millions of products, compare prices, read
customer reviews, and make well-informed purchasing decisions.
The company's logistics infrastructure is highly advanced, enabling fast and reliable
delivery options. Its Prime membership program, available in select countries, provides
subscribers with benefits such as free shipping, access to streaming services like Amazon
Prime Video, exclusive deals, and more.
Amazon has also been at the forefront of technological innovation. This includes the
development of smart devices such as the Amazon Echo powered by the intelligent voice
assistant Alexa, as well as advancements in areas like artificial intelligence, cloud
computing (through Amazon Web Services), and robotics.
With its extensive product selection, competitive pricing, fast delivery, and commitment
to customer satisfaction, Amazon has become a dominant force in the e-commerce

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industry, revolutionizing the way people shop online and setting high standards for other
retailers to follow

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2.0 CONTENT

2.1 STRATEGIES

LAZADA STRATEGIES

Lazada has employed several strategies that have contributed to its growth and success
in the Southeast Asian e-commerce market:

Localized Approach
Lazada recognizes the diverse cultural, linguistic, and logistical nuances across
Southeast Asian countries. It tailors its platform and content to cater to the specific needs
and preferences of each market. This localized approach helps Lazada connect with local
customers and build trust within the region.
LazMall and Authorized Brands
Lazada has developed LazMall, a platform dedicated to selling authorized brand
products. LazMall offers customers the assurance of purchasing genuine products from
trusted brands, fostering trust and quality assurance. This strategy helps differentiate
Lazada as a reliable and authentic shopping platform.
Social Engagement and Influencer Marketing
Lazada actively engages customers through social media platforms and influencer
marketing. It organizes live streaming events, collaborates with local influencers and

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celebrities, and encourages user-generated content. This strategy creates a sense of
community, enhances brand visibility, and drives customer engagement.

Local Seller Support

Lazada supports local small and medium-sized businesses by providing them with a
platform to reach a wider customer base. Lazada offers resources, assistance in setting
up online stores, and access to its logistics infrastructure, helping local sellers overcome
barriers to entry and thrive in the e-commerce ecosystem.
Enhanced Payment and Delivery Options
Lazada continually enhances its payment and delivery options to provide convenience to
customers in Southeast Asia. It offers multiple payment methods, including partnerships
with local payment providers. Lazada also collaborates with logistics partners to improve
delivery efficiency, mitigating challenges unique to the region.
Continuous Technological Innovation
Lazada focuses on adopting and developing technology to improve the overall customer
experience. This includes optimizing its website and app for seamless browsing and
purchasing, utilizing data analytics to personalize recommendations, and embracing
emerging technologies to enhance operations and logistics.
Cross-border Trade
As a regional e-commerce player, Lazada has leveraged its presence in different
Southeast Asian markets to facilitate cross-border trade. This strategy enables sellers to
expand their reach beyond their local markets and access a larger customer base,
promoting regional economic growth.

Through its localized approach, emphasis on LazMall, social engagement strategies,

support for local sellers, optimized payment and delivery options, technological
innovation, and cross-border trade initiatives, Lazada has positioned itself as a leading e-
commerce platform in Southeast Asia. These strategies cater to the unique
characteristics of the region, addressing the specific needs and preferences of customers
and sellers.

AMAZON STRATEGIES
Amazon has employed several key strategies that have contributed to its success in the
e-commerce industry:

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Customer Obsession
Amazon places a strong emphasis on prioritizing customer needs and satisfaction. Its
commitment to providing a seamless customer experience is evident in its customer-
centric policies, quick and reliable shipping options, hassle-free returns, and personalized
recommendations based on customer preferences.
Wide Product Selection
Amazon offers an extensive range of products across various categories, maintaining one
of the largest product catalogs in the industry. This expansive selection caters to diverse
customer preferences and ensures that customers can find almost any product they are
looking for on the platform.
Competitive Pricing
Amazon strives to offer competitive prices to its customers. The platform leverages its
size and economies of scale to negotiate favorable pricing with suppliers, ensuring that
products are priced attractively for customers. In addition, the algorithmic pricing system
dynamically adjusts prices based on market demand and competitor pricing, helping to
remain competitive.
Prime Membership Program
The Prime membership program is a cornerstone of Amazon's strategy. By offering
benefits such as free, fast shipping, access to exclusive deals, and streaming services
like Prime Video, Amazon has fostered customer loyalty and retention while driving
additional revenue through subscription fees.
Data-driven Personalization
Amazon leverages data analytics and machine learning algorithms to personalize the
shopping experience for its customers. Its recommendation system analyzes customer
behavior, purchase history, and browsing patterns to provide personalized product
recommendations, improving customer satisfaction and driving additional sales.
Fulfillment by Amazon (FBA)
FBA enables third-party sellers to store their inventory in Amazon's warehouses,
leveraging Amazon's robust fulfillment network. This allows sellers to benefit from
Amazon's efficient storage, packaging, and shipping processes, ensuring fast and reliable
delivery for customers.
Continuous Innovation

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Amazon has a strong focus on innovation and continuously strives to develop new
technologies and services. This includes advancements in areas such as cloud
computing (AWS), voice-enabled smart devices (Amazon Echo), and content streaming
(Prime Video), which have diversified its revenue streams and expanded its reach into
various industries.
Market Expansion and Global Reach
Amazon has expanded its operations globally, entering multiple markets and adapting its
business model to different regions. This global presence enables Amazon to tap into
diverse customer bases and leverage its expertise in e-commerce on a global scale.

By focusing on customer satisfaction, wide product selection, competitive pricing,

personalized experiences, and continuous innovation, Amazon has positioned itself as a
leader in the e-commerce industry. Its strategies have helped drive customer loyalty,
increase market share, and expand into new industries, contributing to its ongoing
success

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2.2 Identify the less successful

Lazada can be considered less successful than Amazon for several reasons:

Market Reach and Global Presence

While Amazon operates globally and has a strong presence in multiple countries, Lazada
primarily focuses on the Southeast Asian market. Amazon has a much larger customer
base and operates in more diverse markets, giving it a significant advantage in terms of
scale and reach.
Brand Recognition and Trust
Amazon is a globally recognized brand that has built a strong reputation for customer
service, reliability, and a wide range of product offerings. Lazada, although successful in
Southeast Asia, may not have the same level of brand recognition and trust on a global
scale. This can impact customer confidence and adoption of the platform.
Resource Allocation and Investment
As the world's largest e-commerce company, Amazon has vast resources and invests
heavily in research, development, and innovation. They constantly introduce new services
and technologies to enhance customer experience and stay ahead of the competition.
The level of investment and innovation by Amazon may outpace that of Lazada,
influencing their relative success.
Competitive Landscape

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Amazon operates in highly competitive markets and has established a dominant position
in many of them. Lazada faces strong competition from local and global players in the
Southeast Asian market, which may make it more challenging for Lazada to achieve the
same level of success as Amazon.
Revenue and Market Share
Amazon's revenue and market share significantly surpass that of Lazada. Amazon's
diverse revenue streams, including e-commerce, AWS, and advertising, contribute to its
financial success. Lazada, while successful in its target market, may not generate the
same level of revenue and market share as Amazon.

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3.0 RECOMMENDATION

To improve and learn from other successful e-commerce platforms, Lazada can consider
the following strategies:

Customer Experience
Benchmarking successful platforms like Amazon can help Lazada identify best practices
in delivering an exceptional customer experience. This can include improving website and
app design, streamlining the purchasing process, optimizing product recommendations,
fast and reliable delivery, and efficient customer service.
Seller Support
Learning from platforms like Amazon, Lazada can enhance its support for sellers. This
can involve providing comprehensive training programs, seller analytics, and tools to
optimize product listings, pricing strategies, and inventory management. By fostering a
strong seller ecosystem, Lazada can ensure a diverse and trustworthy selection of
products for customers.
Technology Investment
Lazada can benchmark technology investments of leading e-commerce platforms to
enhance its own infrastructure. This includes optimizing server capacity, streamlining data
management, leveraging artificial intelligence and machine learning for personalized

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recommendations, and continuously improving the platform's performance and user
interface.

Fulfillment and Logistics

Analyzing the fulfillment and logistics operations of successful platforms can provide
valuable insights for Lazada. This may involve expanding and optimizing its fulfillment
network, exploring partnerships with logistics providers to improve delivery efficiency, and
implementing advanced tracking and delivery management systems.
Innovation and Diversification
Learning from the diversification strategies of platforms like Amazon, Lazada can explore
innovative initiatives to expand its service offerings. This could involve entering new
industries, such as offering digital services, expanding into emerging markets like fintech
or grocery delivery, or developing unique partnerships to drive customer engagement and
loyalty.
Data-driven Insights
Benchmarking data-driven strategies of successful platforms can help Lazada harness
the power of data to enhance decision-making and personalize the customer experience.
This includes leveraging data analytics to identify customer preferences and trends,
optimize marketing campaigns, and improve inventory management and demand
forecasting.
Continuous Improvement
To benchmark effectively, Lazada should foster a culture of continuous improvement.
This includes regularly assessing key performance metrics, soliciting customer feedback,
and regularly monitoring industry trends and innovations. Embracing a mindset of
continuous learning and improvement will help Lazada stay ahead in a rapidly evolving
e-commerce landscape.

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CONCLUSION

In conclusion, both Lazada and Amazon are significant players in the e-commerce
industry, but Amazon has achieved greater success on a global scale. Amazon's
extensive market reach, brand recognition, resource allocation, and competitive
advantage contribute to its dominant position in the industry. Lazada, on the other hand,
has established itself as a leading e-commerce platform in Southeast Asia, but its success
is more localized.

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REFERENCES

Website :
1. Amazon Essay - Company Background and History - Free Essay Example |
EduZaurus Lasada (Lazada) Detailed Benefits and Features Review | Pinoy Centric
2. https://www.fullonecommerce.com/the-advantages-and-disadvantages-of-selling-on-
amazon.html
3. https://bulbandkey.com/blog/business/how-inbound-marketing-can-benefit-your-
business/
4. https://shedbuildermag.com/how-do-you-identify-your-sheds/

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