Amazon Marketing Audit

Perkins

1 year ago

Amazon Marketing Audit

Competitors:

1. Alibaba Group: Based in China, Alibaba is one of the most significant competitors in e-commerce. They offer a broad array of products similar to Amazon but focus more heavily on B2B transactions.

2. eBay: eBay is a US-based e-commerce platform that operates on a model of consumer-to-consumer and business-to-consumer sales. It is known for its auctions, allowing customers to sell goods to one another.

3. Walmart: Though traditionally a brick-and-mortar retailer, Walmart has made a significant push into online retailing and delivery services, particularly in the US market.

4. Google and Microsoft: Regarding cloud services, Google Cloud and Microsoft’s Azure are significant competitors to Amazon Web Services (AWS).

5. Netflix and Disney+: These companies compete with Amazon Prime Video in the streaming content market.

Their Competitive Advantage & Intelligence (CI)

1. Alibaba Group: Alibaba’s main advantage lies in its domestic solid presence in China, a large and rapidly growing market. It also benefits from favorable government policies.

2. eBay: eBay’s advantage lies in its unique auction-style selling model. Its more liberal policy regarding second-hand goods gives it a niche market that Amazon doesn’t cater to as thoroughly.

3. Walmart: Walmart has an extensive physical retail presence complements its online business, allowing for flexible buying options like Buy Online Pickup Store (BOPIS). It also has a well-established supply chain and logistics network.

4. Google and Microsoft: Their diverse software and hardware product portfolio complements their cloud services. They have strong relationships with enterprise customers, making it easier to bundle and cross-sell services.

5. Netflix and Disney+: They possess an extensive collection of original content, which gives them an edge over Amazon Prime Video.

Competitor Capabilities & Strategies

Our competitors primarily focus on their core competencies to stay competitive. For example, Alibaba focuses on B2C and B2B markets, eBay specializes in consumer auctions, Walmart leverages its massive retail network, and Google and Microsoft capitalize on their software and enterprise connections.

Prediction of Response Patterns & Future Actions

Given the intense competition in all our service areas, we can predict that our competitors will continue investing heavily in technology, customer service, and developing exclusive content/products to attract and retain customers.

Developing a Competitive Advantage for Amazon

1. Economies of Scale: Amazon already enjoys significant economies of scale due to its large sales volume. We should continue leveraging this by negotiating better terms with suppliers, investing in automation to reduce costs, and optimizing logistics.

2. Economies of Scope: With a diverse array of services (e-commerce, streaming, cloud services), Amazon can offer bundled services to customers. For example, combining Prime Video, Amazon Music, and fast shipping into one package.

3. Economies of Speed: Investing in faster delivery networks and improving the efficiency of AWS can offer customers faster shipping and better cloud services, adding to Amazon’s appeal.

4. Local Advantages: Amazon should focus on understanding local customer preferences to offer tailored product offerings and services, which can increase customer loyalty.

5. Global Services: Amazon should continue to expand its international presence, especially in emerging markets. Offering localized content and partnering with local suppliers can drive this expansion.

6. Human Resources: Investing in talent is crucial for innovation and customer service. Amazon should focus on employee development, creating a better work environment, and attracting top talent.

How Competitors Will React to Future Actions of the Company

Our competitors are likely to react strategically and swiftly to our actions. Depending on our move, their reactions could range from price adjustments, enhancing service offerings, and boosting marketing efforts to investing in new technologies or partnerships. We must anticipate these responses and factor them into our strategic planning. For example:

1. Price Adjustments: If we lower or offer a significant discount, competitors like Walmart and Alibaba might follow suit to remain competitive.

2. Enhancing Service Offerings: If we introduce a new service or feature, such as a new video-on-demand series on Prime or a unique product category, competitors like Netflix and eBay may strive to introduce comparable or superior offerings.

3. Boosting Marketing Efforts: If we launch a new advertising campaign, competitors will likely respond with their marketing efforts to maintain market share.

4. Technological Advancements: If we invest in new technologies to improve our services – for instance, drone delivery or advanced AI for AWS – competitors like Google and Microsoft will likely accelerate their tech development to keep up.

How Amazon Develops Competitive Advantage

1. Economies of Scale: With its vast global reach and high sales volume, Amazon can negotiate better terms with suppliers, streamline operations, and distribute fixed costs over many units, leading to lower per-unit costs.

2. Economies of Scope: Amazon’s wide variety of services (from e-commerce to cloud computing to digital streaming) allows it to share resources across its network, reducing costs and increasing efficiency.

3. Economies of Speed: Amazon’s emphasis on quick and reliable delivery and fast cloud services gives it a significant advantage. By continually investing in its logistics network and tech infrastructure, Amazon can provide superior service to customers, enhancing loyalty and boosting sales.

4. Local Advantages: Amazon leverages its understanding of local markets to offer tailored product assortments and cater to local tastes, thereby gaining a competitive edge in diverse markets worldwide.

5. Global Services: Amazon’s presence in various international markets enables it to benefit from global synergies and serve a broad customer base.

6. Human Resources: Amazon’s talented workforce drives its competitive advantage. By recruiting top talent, investing in employee development, and fostering a culture of innovation, Amazon continues to stay ahead of the curve.

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Question

You are the marketing manager of a global company of your choice. Please choose from this link.

Business has been down worldwide, and the chief marketing officer has tasked you with doing a complete internal marketing audit of your chosen company to introduce in the next board of directors meeting.

Amazon Marketing Audit

The initial research you will need for the audit must start with Chapters 2 and 3 of your textbook.

For the next 5 weeks, you will create a marketing plan that will begin in Unit 1, continue through all units, and culminate in Unit 5. Your discussion and project will be connected each week, so you must promptly complete your discussion and participation.

For the complete internal marketing audit, you will need to categorize the following key issues:

Competitors
Their competitive advantage
Their competitor intelligence (CI)
Focus on competitor capabilities
Competitor strategies
Prediction of response patterns
How competitors will react to future actions of the company

Examine how your company develops competitive advantage through the following:

Economies of scale
Economies of scope
Economies of speed
Local advantages
Global services
Human resources

Deliverable Requirements

Your complete internal marketing audit must be at least 5 pages. Make sure you use APA formatting while using Chapters 2 and 3 of your textbook as the first source and four other outside sources, for a total of five sources.

Submitting your assignment in APA format means, at a minimum, you will need the following:

Title page: Remember the running head. The title should be in all capitals.
Length: 5 pages minimum
Body: This begins on the page following the title page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

Company Choices.

Alibaba (China) Technology Co., Ltd.
$869.28M | China

Alphabet Inc.
$282,836M | United States

Amazon.com, Inc.
$513,983M | United States

Apple Inc.
$394,328M | United States

BP P.L.C.
$241,392M | United Kingdom

Bechtel Group, Inc.
$5,074.13M | United States

Benefytt Technologies, Inc.
$381.81M | United States

Berkshire Hathaway Inc.
$302,089M | United States

EXOR N.V.
$141,346.87M | Netherlands

Exxon Mobil Corporation
$413,680M | United States

General Motors Company
$156,735M | United States