Amazon analysis

Essay by sunshine94College, UndergraduateB+, April 2014

download word file, 6 pages 0.0

Amazon

Organization project

STP analysis

Market segmentation:

Demographical segmentation - according to the world statistics people that reads the most books are:

Gender: Female 53%, Male 42%

Age: 18-19 (40%), 30-49 (47%), 50-64(51%), 65+ (47%)

People that use computerized technologies mostly are people under age of 60, and most people that use internet in their life`s are people under age of 50.

Psychographics segmentation - people for whom buying e-books is more practical are people with an active lifestyle. E-books are for people who enjoy reading and don't pay attention if they are reading from physical or digital material. People who are paying attention on money spending prefer e-books as those are cheaper (instead of paying 25$ for a hard copy but 10$ for a digital copy).

Behavioral segmentation - if we look from a behavioral perspective typical customers for Amazon are who prefers online shopping. In this case customers who are less brand value interested.

Targeting

According to the market segmentation facts we can say that the main target groups are males and females on the age segment from 18-49 years of age. The reasons why these target groups are simple: mainly because of the usage of technologies, lifestyle (easy and fast) and the social class (cheaper/affordability).

Positioning

Amazon can present their books as the price leaders as e-books are much cheaper. We can consider that Amazon is the market share leader as its most known online shopping system.

http://www.cleancutmedia.com/books/does-anyone-read-books-anymore-be-surprised

http://www.npr.org/programs/specials/poll/technology/

http://www.utsandiego.com/news/2013/Sep/04/favorite-online-retailers-2013-stores-magazine/

SWOT analysis

Strengths:

Number 1 online shopping system;

Market share leader;

Price leaders;

Shipping world while;

Weaknesses:

Low brand value;

Lack of literature in case of the "boycott" ;

Low market share according to elderly people;

Opportunities:

Using Amazon Inc. as publishers so writers would reach a bigger selling range;

Gain trust not only as...