As a matter of course, individuals purchase what they need on website alone. In any case, with regards to Amazon.com, their relationship advertising group has made it much simpler for clients to share their experience with friends and families alike. After clients make a purchase, they are given the choice to conveniently share their buy on social networking channel of their own choice, or send it by email. This not only works as a mode of free publicizing for them, yet the feedback they gather from clients after they make their purchases permits them to enhance their service
For example, if all the employees of Amazon of always trying to find the mistakes that their peers are doing to report them to their superior and were working together instead, they could put all this unnecessary energy in a focus group to find innovative ideas and to help each others. This type of positive climate could help people staying in the company and not leaving after few months, because the stress encounter at work is too high. The article cited that Amazon had the second-highest turnover among the Fortune 500 companies, with a median tenure of one year, which is really low.  The espoused values of the Amazon’s culture are “work hard, have fun and create history”, but the enacted values just seemed to be hard work and success. The Amazon culture can be described as an outcome orientation organization with managers asking for results without excuses.
The fact that no one has seen anything like Amazon before makes people worried; this produces people into believing that the five- hundred and sixty billion dollar company has control of the economy, thus forming a monopoly. However, as long as the prices do not go up, consumers do not suffer, and competition challenges Amazon, then the company does not have a monopoly. The first reason that proves Amazon does not have a monopoly: the prices. Amazon does control the majority of e-commerce. However, Amazon prices stay low, enhancing the business of Amazon, which explains the dominance in online shopping.
Internal Environment Amazon has loyal customers because it already established itself as one of the pioneering companies in the industry of e-commerce. It is the first mover in the industry and has established many old customers who keep on coming back. Its loyal customers convey the high level of trustworthiness of the company that is obvious to the new customers. The company is also competitive because of its continuous innovation and by utilizing the current technology and observing the latest industries trends. Amazon’s management seems to understand that by staying innovative will somehow guarantee the success of the company.
Amazon also divides its consumers on the basis of their personalities, namely tolerant, resolved and enterprising. There is also a division on the basis of users of a product; such as first timers, regulars and ex users. Another important basis is social class of its consumers: lower class, middle as well as high class. (Dudovskiy,
This includes sales margin, fees for fulfillment and value computing fees. This includes relationship each segment expects this includes customized profits and suggestions, self service application program interface and e-readers. REVENUE MODELS Purchasers can purchase goods or merchandise directly through third party by using Amazon .com for this it charges a commission rate .transaction fees and closing fees other than that it also generates revenue through affiliate revenue model in which website owners picks the product from Amazon and earn referral fees on the merchandize the fees is about 4 percent to 10 percent of the product price. The revenue model with respect to America is as follows: MARKET SEGMENTATION Amazon is the company which uses the demographic, psychographics information for predicting the future purchase intention of customers .it target its individual personally in order to built long term relationship with that of customers .other than that it target middle and upper class people who do not have time and prefer convenient sources of shopping Psychographics information includes: • Interest • Lifestyle • Socio economic
Amazon.com is a multination consumer electronics as well as clouding computing company that founded by Jeffery P. Bezos in 1994. And they based in Seattle, Washington. It started out as an online bookstore and subsequently, it has an offer diversity of products such as electronics, food, clothing and furthermore products. It has become the largest internet company in the United States and currently, has 230,800 employees working under Amazon.com In addition, Amazon.com is ranked 44th in Fortune Global 500 and featured in World 's Most Admired Companies as well as achieved a third ranking
But for Amazon.com, it applied "knowing the area of competitors' weaknesses and strengths by throwing some contest" on its business management. For public company, there is a fundamental requirement to follow which needs to update its latest annual report that contained a lot of information and financial statements to the public. So, Amazon.com able to obtain easily competitors' information such as the revenue gained for comparison of assessment between us to know the next step what should have do against their weaknesses and strengths. This is able to help Amazon.com company to come up better strategy to counter their weakness and improve their strength. For examples, Amazon used Multi-level sales strategy to survive against those competitors after assessed their weaknesses which means started off by focusing three relationships that are Business-to-Consumer relationships between itself and its customers; Customer-to-Business as it realized the value of customer reviews as one of the product summary; and the last one is Business-to-Business relationships between itself and its
Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company.Amazon primarily derives its competitive advantage from leveraging IT (Information Technology) and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors.One of the key strengths of Amazon is that it enjoys top of the mind recall from consumers globally and this recognition has helped it enter new markets, which were hitherto out of bounds for many e-Commerce companies.Using superior logistics and distribution systems, the company has been able to actualize better customer fulfillment and this has resulted in Amazon deriving
Amazon is extremely market-oriented. For instance, Amazon was positioned by its leader as global customer-centric company where virtually anything that people are looking for can be successfully found and ordered. The most attractive sides of Amazon‘s business strategy are low prices, vast selection, and more importantly convenience for their customers. Therefore, with these strong qualities, the company continues to grow as a world-class web commerce giant. Also, among Amazon’s advantages is its infrastructure.