Week 1: Amazon.com, Inc. and Internet Marketing
Amazon.com Inc, is one of the largest globally known online retailers which have decided to endeavor the traditional offline retail industry by launching its first Amazon Go store in Seattle, where it offers a technology based shopping experiences to it’s prime subscribers to make purchases without interacting with people aka the cashiers.
Amazon planned to achieve higher profits through both online and offline retail button sure if it would be able to replicate its competitive advantages contributed to its online success in the offline retail markets. By going into a traditional offline market company would put itself in a risky position due to its lack of experience in traditional retailing comparative to it’s biggest competitor Walmart. However, being number one globally in online segment, Amazon should increase its profitability by providing its consumers the most customer centered approach for grocery shopping by offering it through online stream rather than traditional offline brick and mortar style stores. It can create potential increase in revenue.
In order to add value networks, the company should determine its target markets and create the supply chain that responds to its target markets by using demand chain planning strategy. Online retailers like Amazon has zero level on consumer marketing channel and industrial marketing channel. That means the company produces the product such as kindle, and directly delivers the product to consumers without going through retailers. However, the company also allows other retailers sell their products via the website,which serves as a retailer, and sell some of the Amazon’s products through retail stores. At this point, the company has one level on consumer marketing channel and industrial marketing channel. In addition, the company needs to rely on distribution agencies such as UPS, FedEx, etc to deliver products to consumers. Therefore, the company will need to keep a good relationship with retailers, customers, and distribution agencies and focus on information technology and software to strengthen its management.
Being the first move in checkout free convenience store Amazon Go can maintain its competitive advantage as it has got a time lead and thereby it can use this time lead to attract more customers and even retain them. Amazon plays on Customer Loyalty, thereby, if it is able to efficiently utilize this time lead in strategically innovating and managing the current scenarios to provide enhanced customer shopping experience by continuously working on feed back, then it will aid to generate a greater customer equity and become a leading player even in the offline market.Amazon can avoid failures such as the diaper brand it introduces in 2014 and make elements more successful is by doing a beta testing on Amazon Elements, i.e. giving products of Amazon elements as free samples and requesting feed back from customers and improving the product. Once, the product is completely updated according to the customer demands, they can really perfect it.
To reach my demographic, I have shared this blog with colleagues, friends and family and have asked them to spread the word to fellow retail professionals and those who are interested in learning about retail marketing and how particular companies are successful within this field! I have emailed my blog to these people as well as used my social media through Instagram, Snapchat, Twitter and Facebook to market my blog as well!
Amazon planned to achieve higher profits through both online and offline retail button sure if it would be able to replicate its competitive advantages contributed to its online success in the offline retail markets. By going into a traditional offline market company would put itself in a risky position due to its lack of experience in traditional retailing comparative to it’s biggest competitor Walmart. However, being number one globally in online segment, Amazon should increase its profitability by providing its consumers the most customer centered approach for grocery shopping by offering it through online stream rather than traditional offline brick and mortar style stores. It can create potential increase in revenue.
In order to add value networks, the company should determine its target markets and create the supply chain that responds to its target markets by using demand chain planning strategy. Online retailers like Amazon has zero level on consumer marketing channel and industrial marketing channel. That means the company produces the product such as kindle, and directly delivers the product to consumers without going through retailers. However, the company also allows other retailers sell their products via the website,which serves as a retailer, and sell some of the Amazon’s products through retail stores. At this point, the company has one level on consumer marketing channel and industrial marketing channel. In addition, the company needs to rely on distribution agencies such as UPS, FedEx, etc to deliver products to consumers. Therefore, the company will need to keep a good relationship with retailers, customers, and distribution agencies and focus on information technology and software to strengthen its management.
Being the first move in checkout free convenience store Amazon Go can maintain its competitive advantage as it has got a time lead and thereby it can use this time lead to attract more customers and even retain them. Amazon plays on Customer Loyalty, thereby, if it is able to efficiently utilize this time lead in strategically innovating and managing the current scenarios to provide enhanced customer shopping experience by continuously working on feed back, then it will aid to generate a greater customer equity and become a leading player even in the offline market.Amazon can avoid failures such as the diaper brand it introduces in 2014 and make elements more successful is by doing a beta testing on Amazon Elements, i.e. giving products of Amazon elements as free samples and requesting feed back from customers and improving the product. Once, the product is completely updated according to the customer demands, they can really perfect it.
To reach my demographic, I have shared this blog with colleagues, friends and family and have asked them to spread the word to fellow retail professionals and those who are interested in learning about retail marketing and how particular companies are successful within this field! I have emailed my blog to these people as well as used my social media through Instagram, Snapchat, Twitter and Facebook to market my blog as well!
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