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.
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