B2C transactions are likely to use marketing such as advertising, direct and Internet selling to market their products and services. They may also use discounts and loyalty programs to attract prospect customers as well as retaining repeating customers. B2B’s have a different marketing strategy. As stated above, B2B’s have a longer buying process compared to B2C’s. Because of this, B2B marketers need to focus on building a relationship with its business prospects and taking into account the buyer's specific
v) Entry by rivals Although rivals can enter the market of Amazon, the company has already reached the biggest global marketplace and there are many visitors to its website. b) Value chain model analysis Value chain refers to the activities which create value and competitive advantage for a company. For Amazon, these activities are shown in the model below; Amazon value chain model by Dudovskiy, J. (2017) Activity Explanation In-bound logistics Amazon uses the Fulfillment by Amazon (FBA) and takes responsibility for customer service, logistics and returns. Operations Amazon
For example, the company evaluates competitors’ prices as basis for pricing AmazonBasics products. The advantage of this pricing strategy is that it makes selling prices more competitive, affordable and attractive to target consumers. On the other hand, the price discrimination strategy involves setting different prices for the same product. Amazon applies this pricing strategy through its different websites. For instance, the company’s prices for the same products are different between the United States and the United Kingdom, which has its own Amazon website (amazon.co.uk).
This situation in turn created a service differentiation for the company compared to its other competitors. First, the Amazon.com website has an attractive and customer-friendly interface. Fast and reliable delivery which allow the customers to receive their order within the same day in specific area has also been an incredible feature of the company. A no-nonsense returns policy is being implemented, too. To assist the customers in choosing their order, purchase suggestions based on their previous purchases and webpage viewing are given.
But promoting the website involves some cost and competition from established websites. 2. Threat of substitutes: Health being an essential part of life the demand for consumer products is elastic. Multiple websites positioned with narrow product differentiation. Websites are entering a category /trying to gain market share compete on pricing which increases products substitution.
through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Twitter, Inc. has to manage all these challenges and build effective barriers to safeguard its competitive edge. How Twitter, Inc. can tackle the Threats of New Entrants • By innovating new products and services. New products not only bring new customers to the fold but also give an old customer a reason to buy Twitter, Inc. ‘s products. • By building economies of scale so that it can lower the fixed cost per unit.
Amazon.com Amazon.com, Inc is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Some of the key strategies of this organisation is as follows: Cost leadership Amazon leverages economies of scale and economies of learning to make products available at cheaper price. Amazon’s huge bargaining power over its suppliers and it excellent distribution reduces its cost of operation which makes it possible for Amazon to reduce the price of products Differentiation Technologies such 1-click, Recommendations, Wish list differentiates amazon from rest of the competitors, these features make it easy for
Once they are separating, both of them will have a sharper concentration and superior flexibility to pursue prospect achievement in their relevant worldwide retailer and payment markets. eBay and PayPal able to create sustainable, long-term value for their stockholders and provide prodigious opportunities and experiences for their customer globally via setting the right strategy, structure and operational discipline. This is because eBay and PayPal can be more focus on their own resources and capabilities to generate their particular core competencies and lastly achieve their competitive advantage. Apart from that, separation of eBay and PayPal able to perform better as they can reorganize their market segmentation and targeting in order to place themselves in the right positioning. This can be proved by the improved financial performance of eBay and PayPal after the
Amazon is purely an online sales portal. Based on premium web rating organizations Amazon has a position ranging from 4 to 10 on a global ranking of premium websites. The presence of Amazon in the virtual world of internet is unquestionable. Big Data is a technology area which is highly talked about during the last several years. During the last 18 months, companies in the retail sector, manufacturing, construction, and technology areas have realized the extreme potential of Big Data and are trying to gain maximum advantage from it.
Leading brands have focused on building partnerships and alliances to reach each and every segment which has enabled these companies to offer more variety of products, better quality convenience and content. Alliances with leading portals search engines and websites helps in generating traffic and can provide brand a competitive edge over online customers because of its availability. 2.3.5 Importance of Online Brand Alliances Online brand alliances is relevant to the entrepreneurial firms who are unable to reach a wide variety of consumers and by utilizing this alliance they may overcome the problem of reaching economies and accessing markets. It helps the online retailing websites to get more popularity among B2B operating companies and helps in generating traffic through ppc (pay per click). While on the other hand it helps brick and mortar brands to reach the users worldwide and developing a two way relations with its customers.