Amazon goal is to lower their prices than Walmart. Walmart feels threaten by Amazons by wanting to improve their sales, inventory, and the store website. Best Buy competes with Amazon by changing the store appearances. Personally, I have gone to Best Buy and see something that I wanted was too expensive. So, Amazon would have the product at a cheaper price.
Amazon charges a commission based on a formula involving the sale price of the item, a shipping credit, a referral fee of 6-25% of the sale price, a variable closing fee and a $0.99 fixed closing fee. Although gross margins on such transactions are generally lower than that if Amazon sold the item directly, this strategy creates a one-stop shopping destination with a consistent experience for the customer. It has also helped Amazon considerably increase its selection of available products. Strategic Alliances: Another advantage Amazon.com has over its competitors is the strategic alliance and affiliate partners. The strategic alliances Amazon.com have allowed it to diversify from its original business model of selling books to accommodate a diverse range of product.
Product flops decreased amazon revenue and the initiation of the kindle fire was not successful as expected. Opportunities in the SWOT analysis of Amazon. Global expansion, Amazon has no market in Asia and Africa not because it lacks customers, but because it has not widened its networks in these parts of the globe. There is a greater advantage for Amazon to acquire market in these areas as their economies are growing, the market is not saturated and there are less competition Acquisitions, by acquiring E-commerce companies it can decrease the competition level and also can use the specialized capacity of the other company ("Amazon Case Study Analysis", 2016). Establishing physical stores out of the United States, this will increase the safety for deliveries when goods do not reach the required customer, but also improve customer relationship as they will be physically engaging with the
Making happy customers and retaining them is the biggest challenge for any company. Enhanced technology is helping organizations in managing their customers in the long run. Retail giant Amazon is one such organization which has used Information systems extensively in making its customers happy and loyal. To handle huge customer database, systems have to be reliable and fast. Below are some Information systems Amazon uses: SAS (Smart Analysis Search) Amazon built a system which can track fraud customers by analyzing behavioral pattern.
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 strategy is advantageous because it enables the company to adjust its prices based on national market conditions, perceived value of products, and consumer preferences and expectations. In relation, Amazon.com Inc. uses the value-based pricing strategy, which involves price levels based on product value, considering consumers’ perception of value. Thus, the company’s marketing mix reflects flexibility in adjusting to current market
The opinion piece published by the Los Angeles Times, “Amazon.com Is a 21st Century Deal with the Devil,” by Amy Koss states her central argument that Amazon is destroying jobs, malls, and stores in the outside world. I strongly disagree with the statement that Amazon is destroying jobs and stores because I believe Amazon brings convenience by allowing people to sell things they might not need that others do. According to Koss,” I also think that it is at the convenience of consumers who have a difficult time going outside because of a medical issue or if they’re just lazy because of the fact that they can order something and have it delivered to them in less than a few days with an even cheaper price tag. Online shopping on Amazon allows others to earn jobs as well because they might work from home and work for Amazon or they might deliver items to the consumer. Some people may even start their own online selling business on Amazon.
In an article named “Amazon is Creating 100,000 U.S. Jobs, but at What Cost?” it states that many of the jobs will be “low-paying jobs at fulfillment centers….” There are many things that will possibly be hidden until you are able to start your job. With a job like Amazon, workers are eligible to gain workers benefits. But you are not able to pertained until you have taken part in their company for two years. There are many places that have similar jobs to Amazon, but pay more to their workers. An example being Stater Brothers.
Market Development is a crucial aspect in Amazon’s competitive strategy. The use of its existing products for capitalizing on new market areas through its core competencies such as faster delivery time, new channels and distribution methods have facilitated greater market expansion for Amazon. Amazon Fresh offers same-day delivery service on grocery food items and toiletries while Amazon Prime provides a free two-day delivery service on purchases and access to a library of streaming movies and music where customers pay an annual subscription fee of $99 US/£79 Britain for the service. Amazon Prime members also have access to free deliveries on Sundays as well. Amazon recently partnered with Britain Fashion retailer AllSaints to offer Prime members free next-day shipping, where Amazon charges the company for every time their customer clicks through Amazon.com resulting in additional revenue.
Walmart’s main target segment in competing with cost is with Amazon. Online sales are booming, and Walmart plans to increase their e-commerce initiatives. Walmart plans to turn the majority of their shoppers into online shoppers by offering unique features that are not available for Amazon shoppers. Walmart would first need to improve their website to make the website easier to shop and user-friendly. The most useful feature that Walmart can offer their customers is the capability of offering in-store returns and pickups.