Amazon Strategic Marketing Plan
Company Description
Amazon is a global e-commerce site that was founded by Jeff Bezos in 1994. The American website began by selling books and later expanded into a multibillion-dollar entity. The website allows sellers to list their items for sale. The company’s wide client base has been achieved due to the strategic mission and vision statements. The company employs at least 650,000 individuals (Amazon.com, Inc., 2021).
Mission Statement
We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.
Vision Statement
To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.
Product line
Amazon has a varied product line that includes a wide range of products. The company’s Amazon.com website allows clients to purchase household goods, clothing, art, and auto supplies. These are delivered to the client’s chosen destination. Amazon Prime provides clients with premium services through membership. The customers can have their goods delivered within a day, can access prime videos, prime reading, gaming, photos, uncharged two-hour delivery of groceries, and exclusive savings. Amazon Music offers clients access to unlimited music through Android-supported devices, personal computers, Mac, Alexa, and Echo-enabled gadgets. Amazon Go provides ready-made meals, which do not require waiting in line or checking out. Amazon Go Grocery offers clients a chance to access food items easily and quickly. Amazon Fresh provides clients with low-price grocery options that also include same-day delivery. Prime members can also pick the groceries on the same day. Amazon Books allows clients to access books on digital platforms such as Kindle. There are hard copy books that clients can also purchase. The Whole Foods Market allows customerso purchase fresh groceries at a physical location (Amazon.com, Inc., 2021). Amazon’s product lines entail variety to suit the needs of various clients.
Company information
Amazon has been recognized as the second-best employer on Forbes. This recognition has resulted from the company’s respectable and fair treatment of its staff members. The management recognizes that the employees are critical to its service delivery. Through diversity, inclusion, and equity, Amazon is able to provide a safe and opportunity-filled work environment. The company’s values include customer obsession, ownership, invention, simplification, learning, curiosity, developing the best staff, thinking big, earning trust, being frugal, calculating risks, disagreeing, committing, and delivering results as well as a deep connection to all tasks. These values guide managers and employees in their actions and decisions, leading to positive effects. Interestingly, Amazon’s slogan reads, ‘Work hard, have fun.’
Environmental Analysis
Amazon is an online business whose operations are still influenced by the macro and micro aspects of the natural surroundings. Aspects such as waste management and consumption of energy affect the company’s corporate social responsibility policies. The main aim is to ensure that the company’s environmental impact is enhanced positively. The need for increased sustainability has necessitated environmental policies that have a positive impact. Thus, Amazon has an opportunity to create a positive public image and reputation through improved branding.
Competitive Forces
A number of competitors who seek to entice customers through various means recently face Amazon. Shopify provides SMEs with services to ensure their websites remain operational. Its stock valuation is at least $70 billion. In 2019, the company invested $450 million in the 6 River Systems, which is a system that can automate the warehouse. The use of robots and artificial intelligence is expected to lure clients from Amazon, offering competitive solutions for product delivery. FedEx, which Amazon has bannedmong its third-party retailers, has chosen to set up order fulfillment systems, which will present competitive challenges to Amazon (Kestenbaum, 2020).
Economic Forces
Amazon’s profitability depends on the economies of rates it operates in. the country’s economic stability is critical as it affects clients’ disposable income. When clients have more disposable income, they can purchase more items. In the case of suppliers, their source of goods matters. Their cost of goods affects the profit margins directly. Despite lacking physical locations where suppliers deliver their goods for sale, listing items on the website allows fair competition among sellers. The improving economies of developing nations provide appropriate opportunities to increase sales. Thus, providing a variety of goods with different prices and acceptable quality is critical for meeting clients’ needs.
Political Forces
Amazon’s operations are subject to political influence. Political stability is critical to the success of Amazon in various locations. This provides an opportunity for expansion and diversification. The entry into brick and mortar business model in the USA is complementary to the initial e-commerce model. From a marketing perspective, the company’s ability to expand increases the accessibility of its goods and services to customers widening its client base. In addition, political stability in other nations allows Amazon’s marketing efforts to pay off, as it is able to deliver purchased goods with little to no trouble.
Legal, Regulatory, and Ethical Issues
Despite being an online company, Amazon’s operations must observe legal reservations. One of the legal aspects includes constant regulation of products to ensure the safety of consumers. For instance, the FDA requirements on specific products clearly distinguish acceptable from unacceptable items. Thus, Amazon has an opportunity to weed off counterfeit goods from its online inventory continuously. In an effort to protect the environment, the ban on plastic bags requires the company to comply (Sadq, Sabir, & Saeed, 2018). The compliance spreads through millions of sellers in different locations, maximizing the regulation’s effects. Compliance also shows Amazon’s ethical stand and confirms its integrity to clients.
Technological Forces
Amazon can be affected by current advancements in technology due to its reliance on online platforms. The risk of becoming obsolete forces the company to innovate and develop new technological assets continuously. The company’s consistent investment in technology can provide a competitive advantage and protect the entity from new entrants. Other priorities include reducing operational costs and improving the online retail model. Unfortunately, the constant cybercrime threat poses a danger to both the client and the entity. It jeopardizes the company’s ability to carry out business ethically and the clients’ transactions. This demands continuous innovations to ensure the safety of both parties.
Social Forces
Social tendencies affect Amazon’s business activities immensely. The increased dependence on gadgets to conduct shopping through online platforms places Amazon at the center of attention. The increased consumerism accompanies the intensifying online buying habits (Kestenbaum, 2020). These provide an opportunity for global expansion to reach out to new clients in untapped markets.
Current Target Markets
Amazon’s current market is segmented geographically, demographically, behaviorally, and in psychographic terms. The current market extends to more than 100 nations. Amazon reaches clients in both urban and rural parts of these nations. The clients comprise both males and females and are over 14 years old. The clients are mainly students and professionals in different sectors. Their personalities are categorized as ambitious, determined, and easygoing. They could be regular or first-time users of the website. They seek competitive prices for various products and convenience while purchasing online. The company seeks to sell to people from all social classes and have varied lifestyles (Dudovskiy, 2020).
Current Marketing Tactics
Amazon offers the widest range of products to its clients through third-party sellers. Creating a friendly interface ensures that the clients can shop and checkout products successfully and easily. Affiliate marketing is common to Amazon as it penetrates social platforms through blogs, vlogs, recommendations, and sponsors (Sadq, Sabir, & Saeed, 2018). These techniques ensure that the clients learn about amazon and use it while purchasing online.
SWOT Analysis
| Strengths
Ø Recognized e-commerce leader Ø Strong brand presence in the ecommerce sector Ø Strategic expansion through acquisitions |
Opportunities
Ø Secure emerging markets in developing nations Ø Expand online operations to match consumerism and online shopping Ø Investing in physical stores |
| Weaknesses
Ø The increasing number of competitors may threaten the future of the business model Ø Inability to eliminate counterfeit products from China Ø Low margins Ø Cases of tax evasion and increasing debt (Sadq, Sabir, & Saeed, 2018). |
Threats
Ø Cybercrime threats that jeopardize the safety and security of clients Ø Competition from upcoming entrants such as Shopify Ø Increased counterfeit goods that threaten Amazon’s integrity and commitment to quality |
Marketing Objectives
Amazon is a globally recognized entity. Its current threats can be converted into weaknesses and threats into opportunities. The company can seek to appease the clients in developing nations during the marketing process. The improving economies provide more disposable income, which can lead to more sales. Thus, providing variably priced products to these new markets is likely to ensure that purchases increase. The company can also ensure that it requires its third-party sellers to provide legitimate products that ensure quality. To improve the margins, the company should invest in physical stores. These will increase the costs of operation initially. However, the reduction of payouts to third-party sellers will ensure that Amazon has more profits. Finally, the company should collaborate with companies that produce various items to ensure product legitimacy and retention of clients’ trust. This way, it can carry out dropshipping, reducing the commitment of its resources.
References
Amazon.com, Inc. (2021). Amazon Store. Retrieved 2021, from Amazon: https://www.aboutamazon.com/what-we-do/amazon-store
Dudovskiy, J. (2020). Amazon Segmentation, Targeting, and Positioning: Widest Range of Target Customer Segment.
Kestenbaum, R. (2020, February). Amazon Could Be Vulnerable To Competition, And This Is How. Forbes.
Sadq, Z. M., Sabir, H. N., & Saeed, V. S. (2018). Analyzing the Amazon Success Strategies. Journal of Process Management –New Technologies, International, 6(4), 65-69.
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Question 
Strategic Marketing Plan
Part A: Environmental Analysis and SWOT Analysis
(Due in Wk 2)
Amazon Strategic Marketing Plan
Company Description
Describe the company you are designing the plan for. Include:
- Mission Statement
- Vision Statement
- Product line description
- Company information, such as the size of the company
Environmental Analysis
Analyze the forces that affect the company and marketing efforts.
Competitive Forces
Analyze the company’s key competitors. You may choose to use a BCG Matrix or attribute checklist to compare your company against its competitors. Describe any strategic moves the competition has recently made. Estimate your market share. Identify key competitive advantages against your competitors.
Economic Forces
Analyze the economic environment in the areas affecting your business. Consider differences within your industry and the economic impact on suppliers.
Political Forces
Analyze relevant political forces. Examples may include an election year or a law to drastically reduce or eliminate plastic waste in your county.
Legal, Regulatory, and Ethical Issues
Analyze the legal, regulatory, and ethical issues that may affect your business. Considerations may include local laws such as a ban on the use of plastic bags, the ability to post billboards, or a possible increased regulation on direct mail.
Technological Forces
Analyze whether your company will be affected by emerging technologies or trends in hardware and software industries
Social Forces
Analyze social trends and how they may affect your business. Considerations may include if your business will be affected by demographic trends, a growing dependence on computers, or whether interest in your product might be affected by growing preferences in the way things are done or changing social values.
Current Target Markets
Define the company’s current target markets. Describe the demographic, geographic, psychographic, and product usage of these targets.
Review Current Marketing
Review the company’s current marketing tactics. Consider how people find out about the product, how they get information about the product or service, what might be involved in the buying process, and what money is available for marketing. If your company is a start-up, describe your competitors’ current marketing.
SWOT Analysis
Assess your company’s strengths, weaknesses, threats, opportunities, and then evaluate how to address these in your marketing plan.
Strengths
Assess your company’s competitive advantage. Consider core competencies, assets, location, practices, etc. that are distinct in the way the organization meets the needs of its customers.
Weaknesses
Assess what limits the company may have in its current marketing strategy. Consider if there is a company weakness that needs to be addressed through Public Relations or Marketing.
Opportunities
Assess the opportunities you see based on trends or environmental conditions.
Threats
Assess the threats or limitations that may interfere with the company’s ability to meet its objectives or interfere with marketing plans.
Strengths to Opportunities & Converting Weaknesses and Threats
Convert weaknesses and threats to strengths, then strengths to opportunities in the marketing plan. Consider the implications for addressing supplier relationships, implementing new technologies, or changing the product line or addressing new markets.
Marketing Objectives
Establish marketing objectives based on the results from the SWOT analysis. Marketing objectives must align with corporate objectives, modified by the company’s resources. Objectives should include a date for the completion of the objective and the way in which success will be measured. For example: The company will expand its marketing efforts to include a new market segment of 21- to 29-year-olds. This will entail the development of a customized product by June 2020 that will address the specific psychographic and technological needs of this age group. This strategy is expected to attain a 20% growth in overall sales by January 2020. Customer loyalty (willingness to recommend the product) will increase by 30%.