0% found this document useful (0 votes)
49 views23 pages

AMAZON S Digital Marketing

Amazon's digital marketing strategy focuses on three key concepts: [1] unlimited inventory through its vast online offerings, [2] boosting customer service, and [3] using technology like AWS to lower costs and increase choices. This strategy, along with innovative technologies and a large R&D budget, has helped Amazon grow into a tech giant and disrupt retail through digital innovations. Amazon also uses information systems to improve efficiency, decision making, collaboration, and competitive advantage.

Uploaded by

sir Bryan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
49 views23 pages

AMAZON S Digital Marketing

Amazon's digital marketing strategy focuses on three key concepts: [1] unlimited inventory through its vast online offerings, [2] boosting customer service, and [3] using technology like AWS to lower costs and increase choices. This strategy, along with innovative technologies and a large R&D budget, has helped Amazon grow into a tech giant and disrupt retail through digital innovations. Amazon also uses information systems to improve efficiency, decision making, collaboration, and competitive advantage.

Uploaded by

sir Bryan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

AMAZON’S DIGITAL MARKETING STRATEGY

Table of Contents
Introduction......................................................................................................................................3

Digital Strategies.............................................................................................................................4

Competitive benefit in Amazon's marketing approach....................................................................6

Information system for management...............................................................................................8


Introduction

According to Biswas et.al, (2021) Amazon, a pioneer in the online retail arena, is the world's

largest online reseller. Although he began as an online bookshop, his popularity led him to

diversify to sell anything that can be offered online. Furthermore, Amazon has grown globally

and currently operates worldwide by combining regional portals, global supply platforms and

logistics. The method in which Amazon exploited technology as a competitive advantage, taking

advantage of scale economies, as well as using synergies amongst its internal resources. External

drivers has spawned numerous rivals to imitate its business model and to enhance it.
Evaluation of Current Strategy

The basic business strategy of Amazon may be summarized as concentrated diversification.

Camargo et.al, (2021). This approach is centered on the use of technology to achieve

commercial success and on a cost management plan designed to provide its consumers with the

highest value at the lowest price in addition to wrapping their business in Amazon's online

shopping demands.

The fact that it's the world's largest online dealer and has constantly been the market leader in the

areas in which it operates showed how good this strategy worked. However, the cost

management can also follow the decreasing returns rule, whereby companies pursue this strategy,

when the 'low-hanging fruit' is picked, find themselves unable to continue growth or enhance

profitability.
As stated by (Chesta, 2021) the strategy of Amazon is motivated by its competitive advantages,

which include a focus on technology, upgrading the advantages of scale economies and making

use of the efficiencies of synergies between external drives and internal resources. Amazon also

employs Big Data Analytics as a tool for mapping the behavior of consumers. In fact, Big Data

has been so widely used by the corporation that it can now promote this as an alternative service.

Amazon's current approach also focuses on the convenience component whereby clients do not

travel to a physical library or even wait for their purchases to come after some time as they are

delivered on the same day in many nations. Focusing on non-retail product ranges like cloud-

based services, it also addresses the problem of distinction and its overreliance on cost

management.

Digital Strategies

 The foundation strategy of Amazon to transform our marketplace significantly on the

basis of the three concepts and outcomes of Jeff Bezos.


 Digital enable an unlimited inventory, or Amazon is sold on its site in the 10+ sector to a

total of 573 million goods.

 Digital customer service boosting, or Amazon 1 customer satisfaction rank for the

seventh straight year.

 High-margin, low-price digital permits O support for the Internet, AWS, Kiva robot

fulfillment, digital content and services by decreasing cost and boosting choices to

achieve economic scope and scale.

As per (Delfanti and Frey 2021). These concepts form the digital strategies of Amazon.com and

show the vision of Amazon.com at the meta level. In addition, the Strategy Triangle of

Amazon.com supports the business and organizational strategies of Amazon.com on the basis of

past material.

distinctive
type of
innovations
can be
complement
for existing
products
that can
contribute
others.
Similarly,
innovative
technologies
help
Amazon’s
growth
strategy by
designing
complement
arities
amongst to
its devices
and
services
that are
enabled by
technology
for
instance an
Amazon
Prime
customer
can prefer
Echo in
order to
shop from
Amazon.com
by
using Alexa
voice
assistant or
customers
can prefer
to pay
more for a
witty
delivery by
choosing
drone
shipment.
Sustainable growth in the engage in a variety depending on its ability to use innovation in its

routine. For existing products that can contribute to others, distinctive innovations can be

included. Innovative technology, for example, can help Echo to shop from Amazon.com with the

use of a spokesperson from Alexa or customer could prefer to pay larger for sensible deliveries

by choosing drone shipments, by designing complementarities among ones services and products

enabled by technology (Gerasimenko 2021). Amazon Prime's growth strategy Echo also is able

to help.

In earlier years, Amazon.com's $16.1B Research & Development and technology expenditure

has helped it rise up to the top of the tech giant liga. This proof also demonstrates how crucial

digital investment and initiatives are. Retail and supply chain as an industry is ideal for

disruption with technology (Gerasimenko 2021). And no business is larger than amazon.com in
terms of distributive innovation and technology. Amazon.com also shifts the way its customers

can be shopped and secured by using novel products and technology.

Application of Information system

The activities of managing the information requirements of a firm include the administration of

the information systems: people, hardware and software supporting decision-making, for

example text processing, tablets or picture-graphic applications to do various activities. IT

systems gather and preserve essential business data and provide information managers with the

analytical, management and decision-making requirements.

According to Jindal et.al, (2021) In general, companies have several kinds of information

systems, starting with transaction processing systems. Dynamic systems support management

systems allow users to examine data for forecasting, business trending and business strategy

modelling. Management support systems.

The integrated information system begins its system of transactions (TPS). The TPS collects raw

data from internal and external sources and processes this data for storage in a microcomputer-

similar but far bigger database. All vital firm information is really saved in a large database

which is the core information resource of the organization. As previously indicated, the database

administration system records the data and allows users to query the necessary information in the

database.

This is the type of information managers want their companies to handle. You need information

that indicates any trouble areas Klimas et.al, (2021). Problems are places where actual

performance has varied from the planned level and where remedial activities are needed in order

to return to progress.
Benefits

 Contributes to greater efficiency: Managers have the necessary knowledge in order to

identify the strengths and weaknesses of a firm.

 Improves decision quality: better access to information decreases uncertainty and enables

managers to make more logical judgments based on trustworthy facts.

 Promotes greater interdepartmental collaboration at work: In order to identify the areas of

difficulty and seek mutually pleasant solutions, managers, department leaders and

workers share the same information.

 Builds a platform to examine numerous scenarios and economic environments:

Management might evaluate many possibilities before making choices and commitments

to see possible consequences.

 Improves the productivity of employees: employees are more productive since they don't

need to spend time collecting the information management requires (Konina, 2021).

Without further employee input, a well-designed MIS will collect all the data.

 Strengthen the competitive advantage of a firm: running an efficient company via flaws

and areas of non-performance reduction and removal boosts the competitive advantage of

a firm over its rivals.

 Offers more data on customers: Management improves customer service and designs

more effective marketing and promotional efforts with more data on consumer demands.
 For each small business owner who wants to improve his company's performance, a

management information system is important. Without a competent MIS, management

does not make rational decisions based on a comprehensive study of data, but rather

through trial and error.

Competitive benefit in Amazon's marketing approach

Brands cannot succeed in this era of heated competition without a solid business plan and several

sources of sustained competitive advantage. Customer convenience is at the heart of Amazon's

business approach Konina, et.al, (2021). By being the client centered e-commerce brand, the

brand has achieved international success. Success in the 21st century needs ongoing emphasis on

the choices and requests of consumers and an answer to them first. Amazon is selling a wide

spectrum of things through its website with hundreds of millions in number.

This is how it satisfies a very wide spectrum of global client demands. Two important parts of his

company approach are accessibility and affordability. As a major e-commercial, the company

may bring pricing pressure on its suppliers and benefit its customers. In both divisions, including

electronic commerce and Amazon web services, technology is also a very essential aspect of his

company plan! AWS is the largest provider of cloud services. The company maintains a strong

focus on developing a competitive edge, by offering its consumers with a better level of ease.

He still invests in AI and digital technologies for an excellent shopping experience. His research

and development spending is one of the greatest in the technology business. Leite-Filho, et.al

(2021) However, this is vital in order to maintain its growth rate, because the competitive

marketing and technology have been active likewise. In order to attract people the brand employs

numerous canals. Its Amazon Prime debut was likewise quite efficient in attracting and
maintaining its consumers. Amazon's type of expansion was unlikely without having some

competitive advantages in the short term.

Amazon's most important competitive advantage sources are;

 Technology of innovation

 Broader range of products

 Service to customers

 Price (free shipping)

 popularity and loyalty to consumers

Information system for management

According to Milien et.al, (2021)The E-commerce companies aim to gain core expertise by

building and maintaining a unique approach of collecting client personal information and

purchase trends. It critically analyses how service-based Amazon organization uses information

systems management as an invigorating instrument for achieving competitive advantage through

effective information management and acquisition. It includes an evaluation of Amazon's best

practices across their value chain MIS

The activities highlight the uniqueness of the MIS through technology assessment. The process

and systems Amazon uses from the start of the website end user until payment and mode of

delivery is selected Ramadan,.et.al, (2021) The last part of the report includes recommendations
and recommendations for Amazon for the improvement of existing MIS systems. The

suggestions are based on the assessment of quality information and the extent to which proposed

strategies were executed.

Amazon has developed as an American E-commerce multinational and is a leading e-commerce

retailer, offering cloud services. The integration of customer relations and information

management into the overall strategy is guided by three technologies. Two. More than 1000

customers a day are at threat to keep and protect credit card and debit card information. Linux

was indeed a core strength behind the technology, and the company's IT facilities were created to

manage over millions of operations, and to cope with questions and issues over half the seller

volume Senyo et.al, (2021). In enterprise management, the company uses the Customer

Relationship Management Module to collect personalized information and customer state and the

market integrated with the firm's marketing and advertising efforts.

Amazon's sales strategy was very unique, representing its MIS. The company's activities have

changed the multilevel e-commerce strategy from a single sales strategy.

The business favored its first growth in consumer selling models and in businesses in a business

mode. The recent evolution in e-Commerce population has expanded the contacts between the

consumer and the company, which has forced Amazon to priorities and adapt to its IT in order to

promote and respect customer feedback (Siewe Wadeu and Ndjuta Bidzoh, 2021). The exclusion

of shops is an indication of progress in Amazon, as users may use Amazon as a platform to sell

or purchase things. Amazon's business model resembles information management systems.


Browsing, account management and shopping are the last stage. Elastic cloud computing was

another flourishing Amazon web service.

Conclusion

One click" is popular for Amazon, where buyers may buy everything and everything for sale

with a single click of their mouse on their website. In fact its business strategy "clicks" with its

clients in line with the rate Amazon is increasing. Nevertheless, Amazon needs the hour to

continue its growth rates and keep the momentum going.

Furthermore, the company's concerning element is that in many quarters over the past three

years, it has produced no profit. One probable explanation might be his over-focus on cost

management, such that its bottom line is affected in the "race to the bottom."

Finally, in the international markets in which Amazon adapts its global business model to its

local supply and logistics chains, Amazon has to implement a Global strategy. In fact, it would

establish a transnational network of economic value where everyone could acquire items at any

moment.

Finally, the future for Amazon appears bright, and if it keeps focusing on its core skills and

grows its global values chain at the same time, there is no reason why it cannot maintain its

leading market position.


References:

Biswas, B., Sanyal, M.K. and Mukherjee, T., 2021. Feedback Analysis for Digital Marketing in

India: Empirical Study on Amazon. in, Flipkart, and Snapdeal. International Journal of Online

Marketing (IJOM), 11(1), pp.78-88.

Camargo, J.D.S.A.A., Zamarchi, T.B.D.O., Balieiro, A.A.D.S., Pessoa, F.A.C. and Camargo,

L.M.A., 2021. Prevalence of obesity, high blood pressure, dyslipidemia and their associated

factors in children and adolescents in a municipality in the Brazilian Amazon region. Journal of

Human Growth and Development, 31(1), pp.37-46.

Chesta, R.E., 2021. A New Labor Unionism in Digital Taylorism? Explaining the First Cycle of

Worker Contention at Amazon Logistics. In Digital Supply Chains and the Human Factor (pp.

181-198). Springer, Cham.

Delfanti, A. and Frey, B., 2021. Humanly extended automation or the future of work seen

through Amazon patents. Science, Technology, & Human Values, 46(3), pp.655-682.
Gerasimenko, V., 2021. Digital Strategy Implementation in Marketing: New Performance and

Risks. In Digital Strategies in a Global Market (pp. 13-27). Palgrave Macmillan, Cham.

Haith, C., 2021. How to Run a City Like Amazon and Other Fables ed. by Mark Graham et

al. Utopian Studies, 32(1), pp.136-140.

Jindal, R.P., Gauri, D.K., Li, W. and Ma, Y., 2021. Omnichannel battle between Amazon and

Walmart: Is the focus on delivery the best strategy?. Journal of business research, 122, pp.270-

280.

Klimas, C.A., Wadt, L.H.D.O., Castilho, C.V.D., Lira-Guedes, A.C., da Costa, P. and da Fonseca,

F.L., 2021. Variation in Seed Harvest Potential of Carapa guianensis Aublet in the Brazilian

Amazon: A Multi-Year, Multi-Region Study of Determinants of Mast Seeding and Seed

Quantity. Forests, 12(6), p.683.

Konina, N., 2021. Introduction: At the Dawn of the Fourth Industrial Revolution—Problems and

Prospects. In Digital Strategies in a Global Market (pp. 1-12). Palgrave Macmillan, Cham.

Konina, N., Vladimirova, I. and Stonehouse, G., 2021. The Evolution of Conglomerates in the

Digital Era: Adapting Strategies to the Requirements of the Fourth Industrial Revolution.

In Digital Strategies in a Global Market (pp. 145-155). Palgrave Macmillan, Cham.

Leite-Filho, A.T., Soares-Filho, B.S., Davis, J.L., Abrahão, G.M. and Börner, J., 2021.

Deforestation reduces rainfall and agricultural revenues in the Brazilian Amazon. Nature

Communications, 12(1), pp.1-7.


Milien, E.J., da Silva Rocha, K., Brown, I.F. and Perz, S.G., 2021. Roads, deforestation and the

mitigating effect of the Chico Mendes extractive reserve in the southwestern Amazon. Trees,

Forests and People, 3, p.100056.

Ramadan, Z., F Farah, M. and El Essrawi, L., 2021. From Amazon. com to Amazon. love: How

Alexa is redefining companionship and interdependence for people with special

needs. Psychology & Marketing, 38(4), pp.596-609.

Reeves, M. and Chittaro, C., 2021. Getting physical: The rise of hybrid ecosystems. In Winning

the’20s (pp. 21-30). De Gruyter.

Senyo, P.K., Effah, J. and Osabutey, E.L., 2021. Digital platformisation as public sector

transformation strategy: A case of Ghana's paperless port. Technological Forecasting and Social

Change, 162, p.120387.

Siewe Wadeu, D.J. and Ndjuta Bidzoh, C., 2021. Strategic diversification through acquisition:

The move of Amazon to acquire Metro-Goldwyn-Mayer (MGM). Strategic diversification

through acquisition: The move of Amazon to acquire Metro-Goldwyn-Mayer (MGM)(May 27,

2021).

You might also like