What You Can Learn From The Evolution of Amazon


Starting as an online bookstore, Amazon.com has diversified its product lines to include movies, books, DVDs, video games, electronics, computer software, and much more. With an effective marketing plan in place, the company could leverage the use of e-commerce, and certain information technologies, to improve on the efficiency and effectiveness of their business model in an effort to remain the largest online retailer in America.

Please note that Amazon.com is extremely effective in using marketing mix to create new opportunities for the firm. The company’s creative use of e-business and e-commerce continues to create new products and services that address the needs of businesses and consumers. Through the business-to-business (B2B) and the business-to-consumers (B2C) model, Amazon.com can cater to the needs of both parties.

Here is a listing of some of the products and services offered by Amazon.com for consumers and businesses:

1. Amazon.com’s B2B model

Data storage and backup services for other firms (Amazon SimpleDB, S3)
Additional processing capabilities for other organizations (Amazon Elastic Compute Cloud EC2)
Assists businesses with building an e-commerce website (Webstore by Amazon)
Advertising services on Amazon.com for other organizations
2. Amazon.com’s B2C model

Sells books, movies, electronics, games, toys, software programs, and other consumer-based products online to global consumers daily.
Customers can pay for products and services online with PayPal and other online credit card merchants with ease and convenience, for a small monetary fee.
Personalized preferences based on previous purchases or searches (YourAmazon).
Providing additional details on all products and services to assists with convenience for the online shopping experience for all global customers.
In addition to creating new products and services for target markets, Amazon.com is also effective at using their channel of distribution to deliver these goods to consumers and businesses worldwide. For instance, Amazon.com has offices and distribution centers in the United States, Canada, China, France, Germany, Italy, Japan, and even the United Kingdom. Further, the Internet has also enabled the firm to place their products and services at the right target markets with ease.

In fact, Amazon.com realized that the company could maximize on the use of the same channel of distributions to help other businesses. Therefore, Amazon.com has expanded its business model to let other retailers use its logistics and distribution services, along with giving independent software developers opportunities to buy processing power on its IT infrastructure so that they don’t have to buy their own. By taking advantage of certain trends in the marketplace, Amazon.com continues expand, and assist businesses in achieving organizational goals. This is a very effective marketing strategy for the firm because the company could generate additional revenues from other businesses by allowing these entities to exchanges goods and services using the same resources that Amazon.com has acquired over the years.

With a variety of products and services available for businesses and consumers, Amazon.com continues to remain competitive because of dynamic pricing. Dynamic pricing is basically adjusting prices continually to meet the characteristics and needs of individual customers and situations. Rather than incorporating a fixed price policy, the firm realizes that the cost for the products and services offered by the firm must change periodically because of competitors. For example, Barnes and Noble introduced deep discounts of 30% on hard-covers and 20% on paperbacks, same as that of Amazon.com, to pose a direct threat to online sales. Responding to this, Amazon.com introduced price cuts of up to 40% on future best sellers and on selected titles. With this in mind, the pricing for goods and services at Amazon.com remains competitive because of the competition and threats facing the firm. Threats from reputable companies such as Barnes and Noble, eBay, and Walmart, all looking to acquire some of Amazon.com’s market share comprar muñecos funko pop baratos en Argentina.

Amazon.com has also developed several effective marketing strategies and tactics that aid in promoting products and services to customers. For instance, the firm can mine their databases to gauge a specific shopper’s desires, measure his or her means, instantaneously tailor products to fit that shopper’s behavior, and price products accordingly. The company would send e-mails to global customers with recommendations and promotions on certain products and services because Amazon.com is aware of the customer preferences based on past purchases. Customers have found this service to be very useful and do not mind the e-mails because of the accuracy of the promotions that are aligned with past purchases.

In addition, Amazon.com continues to be innovative in their marketing strategies and tactics. Rather than relying solely on the Internet for promoting products, Amazon.com is also capitalizing on acquisitions and partnerships with several key businesses around the globe. Here is a listing of some of the new opportunities Amazon.com has recently pursued after careful market analysis:

Joint venture with British retailer Marks and Spencer to sell its products and services online.
Collaboration with British Library to sell antique books to address the needs of the public sector.
Acquisition of China’s largest online retailer, Joyo.com, to retail books, movies, toys, and music, at discounted prices.
Amazon.com continues to excel at promoting products and services. Rather than placing expensive ads to promote the goods and services, the firm relies strictly on strong partnerships, online ploys, and relentless declaration of quality to market itself. The strategic marketing mix employed by Amazon.com continues to be effective and profitable. The products, place, price, and promotions that are associated with Amazon.com’s marketing plan has become an industry standard for online retailing.

Hopefully this post has provided you with additional information to succeed in your business endeavors similar to Amazon.com. As Thomas Edison wisely stated, “good fortune is what happens when opportunity meets with planning.” Through the firm’s effective marketing mix, Amazon.com continues to have good fortune because of the consistent introduction of products and services that would assist businesses and customers worldwide.

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