Marketing (amzon.com)

Essay by peterpan801111University, Bachelor'sA+, July 2006

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EXECUTIVE SUMMARY

Amazon.com is the largest online retailer, selling various products and services from apparels, shoes, accessories, health care and baby care products, books, cameras, jewelry and watches, music, discs, DVDs, toys, electronics and home and garden products.

Started in 1995, it is now having a market value of $20.15 billion. From a modest garage business it now runs seven retail Web sites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.joyo.com, www.a9.com and www.alexa.com that enable search and navigation, and ww.imdb.com, a movie database Web site.

The strategic issues facing Amazon is a fast moving and unpredictable business model, stiff competition with BarnesandNoble.com, and managing viable growth.

It has to maintain its expansionistic price leadership strategy, its IT innovativeness, superior and widest selection of products, faster deliveries, against weaknesses of supplier dependency, too much dependency of online presence, its investors' inclination to pull out due to low Earnings per share and return on equity, and growing too fast too soon.

If its key strength in pricing, IT supremacy, customer focused marketing strategies, enhanced distribution facilities and world community image, is sufficiently maintained whilst cutting down costs and improving return on equity it can prosper to higher excellence.

It has also some problems in the area of high amortization amounts due to its expansion policy although it gained more customers.

For its marketing mix it offers deep discounted products online covering apparels to books and DVDs besides being an information broker. Product wise, it offers widest selections for customers via expansionistic pricing, seven retail websites for promotion and distribution through Seattle, Delaware and Memphis with huge inventories link.

For promotional mix, it advertises through links with the popular search engines and associate programs, promotions online, maintains public relations through information brokering, encouraging charity for disasters and direct marketing one-on-one online.

For target...