case study of amazon

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Amazon Goes Global 2020

By: Jing Li, Yong Li

Amazon.com Inc.'s (Amazon's) global expansion from 1998 to 2020, started with investment in the United Kingdom and Germany and ended with investment in the United Arab Emirates (UAE). In 2019, as one…

• Length: 26 page(s)
• Publication Date: Oct 15, 2020
• Discipline: International Business
• Product #: W20834-PDF-ENG

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Amazon.com Inc.'s (Amazon's) global expansion from 1998 to 2020, started with investment in the United Kingdom and Germany and ended with investment in the United Arab Emirates (UAE). In 2019, as one of the world's largest e-commerce companies, Amazon had a 15.1 per cent share of the worldwide e-commerce market with operations in 16 countries, including both developed and emerging markets. However, the company was showing unbalanced performance across countries. For example, in 2019, Amazon was the market leader in the United Kingdom (23.3 per cent market share) and Germany (48.3 per cent market share), while it only held 0.2 per cent of the Chinese online retailing market, far behind the market leader who had a 42.7 per cent market share, and it held only 1 per cent market share in Brazil with the market leader having 23.2 per cent. Amazon faced critical challenges in developing its future international strategies. Should it continue its global expansion into new markets? What should the company do with less successful markets such as China and Brazil? Also, how should Amazon deal with the ramifications of an unexpected global pandemic event in its international strategy? This case is an updated version of Amazon Goes Global, former Ivey product 9B14M122.

Jing Li is affiliated with Simon Fraser University. Yong Li is affiliated with University of Nevada, Las Vegas.

Learning Objectives

The case is suitable for graduate-, executive-, and advanced-undergraduate-level courses dealing with international strategy and business policy. After working through the case and assignment questions, students will be able to understand international strategy issues such as internationalization motives, location choice, entry mode choice, and sequential entry decisions such as product sequencing; and analyze why some foreign subsidiaries perform better than others within the same multinational corporation.

Oct 15, 2020

Discipline:

International Business

Geographies:

China, India, Japan, Mexico

Industries:

Retail trade

Ivey Publishing

W20834-PDF-ENG

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The Leading Source of Insights On Business Model Strategy & Tech Business Models

Amazon Case Study – Tearing Down The Whole Business

Amazon runs a platform business model as a core model with several business units within . Some units, like Prime and the Advertising business, are highly tied to the e-commerce platform. For instance, Prime helps Amazon reward repeat customers, thus enhancing its platform business. Other units, like AWS , helped improve Amazon’s tech infrastructure.

Today Amazon is a tech giant who dominated the e-commerce business by offering a wide variety of products, at low cost, and with a delivery service propelled by its inventory management infrastructures, built over the years.

But, if Amazon is an extremely complex company, which can’t be easily labeled, how can we call its business model ?

Table of Contents

A platform business model at the core

Amazon business runs on top of a platform model (to understand what makes it a platform business read this ), built over the years, which takes advantage of network effects and flywheel effects .

At its core, Amazon has to keep attracting over and over billions of consumers across the globe on its platform and keep offering a broad variety of products.

As a two-sided platform , Amazon has also to keep its platform interesting to sellers, who are willing to showcase and sell their products directly on Amazon.

Indeed, over the years the company has experimented with many strategies, and among them, Amazon Prime and the seller services helped Amazon successfully transition toward a platform business.

While this platform business is the foundation of Amazon, what other key businesses exist today on top of that?

Amazon multi-layered business model

Let’s dive into the details of the different models used by Amazon for each of its segments and how some have a logic that ties them together.

For the sake of this analysis , we’ll look at four primary segments:

• Prime (media platform business)
• E-commerce : first-party, third-party, seller services (e-commerce/marketplace platform business)
• Advertising (media platform business)
• AWS (AI-ML platform business)

Those are all platforms business models, as they enjoy the network effects and scalability typical of a platform.

At the same time, they have different value propositions , customer segments, and resources to run successfully.

Prime media business in a nutshell

For instance, Prime is a media platform business running a subscription -based revenue generation, with recurring revenues.

Amazon Prime is a media and entertainment platform, yet its strategic business value goes way beyond that.

This platform targets content creators who have to be incentivized to feature their content on Amazon Prime.

While consumers are incentivized to join Amazon Prime to get movies, ebooks and free shipping on products that are fulfilled by Amazon .

Many see this program as an additional revenue stream that the company enjoys to enhance its revenues.

However, Amazon Prime is a program who has come up after many years of trial and errors by Amazon’s management to come up with ways to:

• reduce customers’ acquisition costs and facilitate repeat purchases : one of the major issues of building a digital platform (but also any other business) are customer acquisition costs and repeat purchases. A habitual Amazon customer buys many times a year. Therefore, shipping costs can easily eat up the convenience of buying on Amazon in the first place. How to prevent that? Cutting or removing those costs is the answer. While it’s hard to justify a membership program based solely on removing the cost of shipping. By offering a broad range of services (free ebooks, free movies and shows, and free shipping) all of a sudden you have an entertaining platform together with free shipping. Which makes the whole value proposition way more compelling.
• incentivize sellers to host their inventories with Amazon : so the company could guarantee fast delivery and lower prices, while also charging a service fee to those sellers. Also, by managing inventories of products from beginning to end. Those same sellers indeed can sell more as customers who have Amazon Prime might want to purchase as they won’t pay for shipping costs.
• make of Amazon a global consumer brand : digital platforms like Amazon have been extremely good at scaling up in a time when they had no resources compared to established brands. As Amazon scaled and consolidated its position in the market, it also started to invest more and more on its brand (in 2019 Amazon spent $11 billion in marketing ). In short, it moved from a solely practical value proposition (price and convenience) to culture-making by investing more and more on marketing and content to consolidate its global brand .

In short, the revenue stream generated by the model is the side effect of a program developed over the years to solve important issues of a business model that needed to keep providing more value to consumers as it scaled.

Advertising business in a nutshell

The advertising business is also a media business, which runs an attention-based revenue generation, which is performance-based (actions on the platforms like clicks, and impressions which get paid by advertisers).

To gain a bit of context, Amazon is among the largest players in the digital advertising business. This makes the platform more interesting to sellers who want to feature their products on top of Amazon listing or to leverage on Amazon transactional data to sell more.

Thus, the key player is the consumer and the ability of the platform to keep attracting billion of consumers across the world. The key customer is the seller willing to pay Amazon to get better placement and more visibility of its products.

E-commerce platform business in a nutshell

The e-commerce platform has within a first-party and third-party seller business.

The first-party comprises products with Amazon brand . Third-party products are those featured on Amazon but sold from outside stores.

Amazon also gives the option to those third-party sellers to manage their inventory directly within Amazon, from an additional fee on the products who are fulfilled directly by the company.

The e-commerce platform remains the foundation of the overall Amazon business and what makes Amazon among the most interesting companies in the world.

Amazon knows it well, and indeed, the whole Amazon flywheel starts from there. This is how a strategy for a complex platform can be simplified. As a platform, you might want to focus on a core stakeholder and transaction to make it scale.

It’s interesting to notice how the fact that Amazon was looking into a way to enable sellers to (thus transition toward a more scalable/ platform model) started with a random tinkering and turned into AWS.

AWS AI platform business in a nutshell

AWS is one of the Amazon massive experiment who turned into a successful business. Over the years, Amazon tested many ideas, also those ideas who were not just coming from customers’ requests , but by the vision of Amazon about what products could have passed the expectations of consumers.

AWS primarily sells computing, storage, database, and other services. Primarily a consumption-based service, Amazon AWS’s main stakeholders are developers, dev managers, ops managers, CIOs, chief digital officers, and chief information security officers.

Amazon AWS is also an AI-ML platform business whose success is the ability to attract developers to build ML tools in the cloud, which can be used by organizations and enterprises buying cloud services to scale their businesses with lower technological costs.

One example is Amazon SageMaker, a cloud machine-learning platform that makes it possible for developers to build those models, thus making the Amazon cloud services more attractive in the first place to enterprises buying cloud services.

Key takeaways from Amazon Case Study

Over the years Amazon has been able to build a complex multi-layered business model , based on several key partners , value propositions , infrastructures and revenue streams .

This is model is the fruit of a long-term vision , but not the result fo a pre-packaged design . Successful companies require tinkering and a lot of trial and error.

Many of those business units, over the years, might have grown as a side effect of figuring out a way to make Amazon a more scalable platform as it helped expand its product variety, convenience, thus align to its long-term vision in unpredictable ways:

Related business researches on Amazon

• Amazon Business Model
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• Amazon Mission Statement and Vision Statement In A Nutshell

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Case Study: Strategizing at Amazon When Globalization Comes Under Pressure

• First Online: 10 September 2019

Cite this chapter

• Jeremy Ghez 2  

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Amazon’s success depends on the access it enjoys to a single and global market. While this has been true for now, the firm’s CEO wonders whether he and others have taken globalization for granted. The case reviews the evidence and discusses the extent to which globalization could go into reverse mode. It then explores the options a firm like Amazon would have to hedge against this risk. The case has several implications for architects of change. In particular, it shows how important it is for them to consider what they are taking for granted and how much they depend on it. It also shows the importance for actors looking for impact of remaining nimble in a turbulent business environment.

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“The Steam Has Gone out of Globalisation,” The Economist , January 24, 2019, https://www.economist.com/leaders/2019/01/24/the-steam-has-gone-out-of-globalisation .

Martin Sandbu, “Three Reasons Why Globalisation Will Survive Protectionist Rebellions,” Financial Times , March 9, 2017, https://www.ft.com/content/1a4e31ce-0333-11e7-aa5b-6bb07f5c8e12 .

Martin Wolf, “Donald Trump Faces the Reality of World Trade,” Financial Times , November 22, 2016, https://www.ft.com/content/064d51b0-aff4-11e6-9c37-5787335499a0 .

See Wolf; Wen Wang, “Emerging Markets Are Set to Lead Globalisation,” Financial Times , April 10, 2017, https://www.ft.com/content/f60d77a4-1ded-11e7-b7d3-163f5a7f229c .

“Globalisation Has Faltered,” The Economist , January 24, 2019, https://www.economist.com/briefing/2019/01/24/globalisation-has-faltered?fsrc=scn/tw/te/rfd/pe .

Ralf Dreischmeier, Karalee Close, and Philippe Trichet, “The Digital Imperative,” The Boston Consulting Group (blog), March 2, 2015, https://www.bcg.com/publications/2015/digital-imperative.aspx .

Jeff Desjardins, “This Is What Happens in an Internet Minute in 2018,” World Economic Forum (blog), May 16, 2018, https://www.weforum.org/agenda/2018/05/what-happens-in-an-internet-minute-in-2018/ .

New York Times journalist Tom Friedman called this the Dell Theory of Conflict Prevention which he stated this way: “No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain.”

Niall Ferguson, The Ascent of Money: A Financial History of the World , 1 edition (New York London: Penguin Books, 2009).

Graham Allison, “The Thucydides Trap: Are the U.S. and China Headed for War?,” The Atlantic , September 24, 2015, http://www.theatlantic.com/international/archive/2015/09/united-states-china-war-thucydides-trap/406756/ .

“Why Is World Trade Growth Slowing?,” The Economist , October 12, 2016, http://www.economist.com/blogs/economist-explains/2016/10/economist-explains-5 .

Shawn Donnan, “Global Trade Slowdown Worse than Thought,” Financial Times , July 13, 2016, https://www.ft.com/content/97a10864-490b-11e6-8d68-72e9211e86ab .

World Trade Organization, “WTO Downgrades Outlook for Global Trade as Risks Accumulate,” September 27, 2018, https://www.wto.org/english/news_e/pres18_e/pr822_e.htm .

International Monetary Fund, “Global Trade: What’s Behind the Slowdown,” in World Economic Outlook , 2016, 63–87, http://www.imf.org/external/pubs/ft/weo/2016/02/ .

Greg Ip, “Can Globalization Be Salvaged?,” Wall Street Journal , November 2, 2016, sec. Economy, http://www.wsj.com/articles/can-globalization-be-salvaged-1478102789 .

See for instance Claire Jones, “G7 Signs off on Watered-down Free Trade Pledge,” Financial Times , May 13, 2017, https://www.ft.com/content/6cdbdba6-37c9-11e7-821a-6027b8a20f23; Claire Jones and Sam Fleming, “G20 Drops Vow to Resist All Forms of Protectionism,” Financial Times , March 18, 2017, https://www.ft.com/content/241cdf2a-0be9-11e7-a88c-50ba212dce4d .

Jinping Xi, “Speech to Davos” (January 17, 2017), https://www.weforum.org/agenda/2017/01/full-text-of-xi-jinping-keynote-at-the-world-economic-forum/ .

Allison, “The Thucydides Trap.”

“Globalisation Has Faltered.”

You can find a summary of the debate here: Lorenzo Bini Smaghi, “How Far Will the Pendulum Swing against Globalisation?,” Financial Times (blog), November 15, 2016, https://www.ft.com/content/0c777dda-bed4-326e-b130-2ab08079e5a9 .

Branko Milanovic, “Why the Global 1% and the Asian Middle Class Have Gained the Most from Globalization,” Harvard Business Review (blog), May 13, 2016, https://hbr.org/2016/05/why-the-global-1-and-the-asian-middle-class-have-gained-the-most-from-globalization .

Dani Rodrik, “There Is No Need to Fret about Deglobalisation,” Financial Times , October 4, 2016, https://www.ft.com/content/d9a28a08-895c-11e6-8cb7-e7ada1d123b1 .

Kim Hart, “Dave McClure’s Investment Strategy for the Trump Era,” Axios , March 16, 2017, https://www.axios.com/dave-mcclures-investment-strategy-for-the-trump-era-2316191240.html .

Gilles Sengès, “Carlos Diaz: «Le Mur de Trump, C’est La Silicon Valley Qui L’a Construit»,” L’Opinion , November 13, 2016, http://www.lopinion.fr/edition/international/carlos-diaz-mur-trump-c-est-silicon-valley-qui-l-a-construit-114167 .

“The Steam Has Gone out of Globalisation.”

Laura Stevens and Sarah Nassauer, “Amazon Fights Wal-Mart for Low-Income Shoppers,” Wall Street Journal , June 6, 2017, https://www.wsj.com/articles/amazon-fights-wal-mart-for-low-income-shoppers-1496732400 .

Louise Lucas, “Alibaba Kicks off Ambitious Plan for Frontier-Free Global Trade,” Financial Times , March 22, 2017, https://www.ft.com/content/590d815a-0ec6-11e7-a88c-50ba212dce4d .

Elizabeth Weise, “Alibaba Launches Program to Help 1 Million U.S. Businesses Sell to China,” USA Today , April 25, 2017, https://www.usatoday.com/story/tech/news/2017/04/25/alibaba-launches-program-help-1-million-us-businesses-sell-china/100827290/ .

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Ghez, J. (2019). Case Study: Strategizing at Amazon When Globalization Comes Under Pressure. In: Architects of Change. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-20684-0_8

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Amazon Five Forces Analysis (Porter Model)

Amazon dominates the online retail market through strategies that account for business challenges, such as the ones identified in this Five Forces analysis. Michael Porter’s Five Forces analysis model is a tool for the external analysis of business organizations. In the case of Amazon, external factors define the conditions of the information technology, consumer electronics, consumer goods, e-commerce and online services, and retail industry environments. Amazon remains the biggest player in the e-commerce market. To keep this industry position, the company regularly evaluates external factors in the online and brick-and-mortar business environments, such as through tools like the Five Forces analysis framework. The forces of competitors, like Apple , Google (Alphabet) , and Microsoft , as well as Walmart , and Home Depot , are addressed through strategic formulation that accounts for the influences of the Five Forces on Amazon’s competitiveness.

Amazon is an industry leader. However, external factors identified in this Five Forces analysis indicate risks affecting market share and business performance because of strong competition with large multinational retail and technology firms. Amazon’s generic competitive strategy and intensive growth strategies evolve as the market changes.

Summary: Five Forces Analysis of Amazon

Amazon competes with a variety of firms, including smaller online retail stores and large information technology firms. The global scope of the e-commerce business exposes the company to a diverse set of external forces. The following are the intensities of the external factors affecting Amazon, based on Porter’s Five Forces analysis model:

• Competitive rivalry or competition: strong force
• Bargaining power of buyers or customers: strong force
• Bargaining power of suppliers: moderate force
• Threat of substitutes or substitution: strong force
• Threat of new entrants or new entry: weak force

Amazon must address the major forces of competition, customers, and substitutes, based on this Five Forces analysis of the business. Competitive advantages and business strengths noted in the SWOT analysis of Amazon can mitigate and resolve issues resulting from such competitive forces. For example, the company can boost its brand image, which is among the strongest in the industry. Also, Amazon can address the external factors linked to the strong force or bargaining power of buyers by focusing on service quality. For instance, counterfeit reduction can improve customer experience in using the company’s online marketplace. Another recommendation based on this Five Forces analysis is for Amazon to counteract the threat of substitution by making its service more attractive. For example, the company can enhance the usability of its website to optimize user experience. These recommendations aim at increasing Amazon’s competitiveness and potential for long-term success in online and brick-and-mortar business environments.

Competitive Rivalry or Competition with Amazon (Strong Force)

Amazon’s competitors are strong and aggressive. This aspect of the Five Forces analysis model examines the effects of firms on each other. In the case of Amazon, the following external factors are responsible for the strong intensity of competition or competitive rivalry in the industry environment:

• High aggressiveness of firms (strong force)
• High availability of substitutes (strong force)
• Low switching costs (strong force)

E-commerce firms are aggressive, and they exert a strong competitive force against each other. For example, Amazon competes with Walmart, which has a significant and expanding e-commerce presence. Providers of online services, such as movie streaming and cloud computing, are also aggressive. Moreover, Amazon experiences the strong force of substitutes because of their high availability. For instance, Walmart’s physical or brick-and-mortar stores are substitutes to Amazon’s online retail service. Smaller brick-and-mortar retailers also compete with the company. Furthermore, low switching costs impose a strong force on the company. In the Five Forces analysis context, low switching costs correspond to low barriers for customers to transfer from one provider to another, or from one company to a substitute provider. Based on the external factors in this aspect of the Five Forces analysis of Amazon, competition is a strategic priority in ensuring the company’s long-term competence.

Bargaining Power of Amazon’s Customers/Buyers (Strong Force)

Amazon’s mission statement and vision statement highlight the company’s customer-centric approach to business. This aspect of Porter’s Five Forces analysis model determines the influence of customers on firms and the industry environment. The following external factors support the strong intensity of the bargaining power of customers in affecting Amazon:

• High quality of information (strong force)

Customers have access to high-quality information on online services, consumer electronics, and other products. In the Five Forces analysis model, this external factor affects Amazon in terms of the ability of customers to easily find alternatives to the company’s products. Also, the low switching costs make it easy for customers to transfer from Amazon to other firms, such as Walmart. Moreover, the high availability of substitutes empowers customers to shift from one company to another. For example, instead of purchasing on Amazon’s e-commerce website, a customer can easily go to one of Walmart’s stores. The external factors in this aspect of the Five Forces analysis show that Amazon must consider the strong bargaining power of buyers as a major factor in addressing business challenges.

Bargaining Power of Amazon’s Suppliers (Moderate Force)

Suppliers control the availability of supplies or materials Amazon needs for its operations, such as hardware components for servers and information systems. The influence of suppliers on the company’s industry environment is outlined in this aspect of the Five Forces analysis model. Amazon experiences the moderate intensity of the bargaining power of suppliers based on the following external factors:

• Small population of suppliers (strong force)
• Moderate forward integration (moderate force)
• Moderate size of suppliers (moderate force)

Their small population empowers suppliers to impose a strong force on Amazon’s e-commerce business. For example, changes in the prices of IT equipment from a small number of suppliers directly impact the company’s online retail operational costs. However, the moderate forward integration limits suppliers’ actual effect on Amazon. In the Five Forces analysis context, moderate (and limited) forward integration equates to a moderate degree of control that suppliers have in the sale of their products to Amazon. Moreover, the moderate size of most equipment manufacturers limits their influence on the company. Based on this aspect of the Five Forces analysis of Amazon, the external factors emphasize the moderate significance of suppliers as a strategic determinant in the information technology and online service business environment.

Threat of Substitutes or Substitution (Strong Force)

Amazon competes with substitutes for its goods and services. This aspect of Porter’s Five Forces analysis model identifies how substitutes affect the industry environment. In the case of Amazon, the following external factors support the strong intensity of the threat of substitution:

• Low cost of substitutes (strong force)

Amazon’s strategies address the strong force of substitutes, which threatens the e-commerce company’s performance. In this Five Forces analysis, the low switching costs show that customers can easily transfer from the company to substitute providers. For example, consumers can easily decide to buy at Walmart stores or other retail establishments instead of buying from Amazon. The high availability of substitutes and the low costs of their product offerings further increase the influence of substitutes on the company. Thus, the external factors in this aspect of the Five Forces analysis of Amazon show that substitution is among the priorities in the company’s strategies for long-term success.

Threat of New Entrants or New Entry (Weak Force)

New firms have the potential to reduce Amazon’s market share. The effects of new entrants are considered in this aspect of the Five Forces analysis model. Amazon experiences the weak intensity of the threat of new entry based on the following external factors:

• High cost of brand development (weak force)
• High economies of scale (weak force)

Amazon’s customers can easily transfer to new firms that provide e-commerce services. In the Five Forces analysis model, this factor empowers new firms to impose a strong force against the company. This condition is due to low switching costs, or the low negative effects of transferring from one provider to another. However, the high cost of brand development weakens the influence of new entrants on the performance of Amazon. For example, it would take years and billions of dollars to create a strong brand that directly competes with the Amazon brand. In addition, the company benefits from high economies of scale that make its e-commerce business strong. As such, new entrants need to achieve similarly high economies of scale to compete against the company. Based on the external factors in this aspect of the Five Forces analysis, new entrants are a minor strategic issue in Amazon’s performance.

• Amazon.com, Inc. – Form 10-K .
• Amazon.com, Inc. – What We Do .
• Amazon.com, Inc. – Who We are .
• Sforcina, K. (2023). Digitalizing Sustainability: The Five Forces of Digital Transformation . Taylor & Francis.
• U.S. Department of Commerce – International Trade Administration – Retail Trade Industry .
• U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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Case Study: Should a Direct-to-Consumer Company Start Selling on Amazon?

• Thales S. Teixeira

An e-bike maker weighs the trade-offs.

Sitting in his office, Mark Ellinas frowned at his computer screen. It was filled with row after row of electric bikes, from expensive models to cheap knockoffs that seemed held together by spit and a prayer. Though they varied in style and price, the bikes did have one thing in common: where they were being sold. The website he was looking at, flush with options, was Amazon.

• TT Thales  S. Teixeira  is the co-founder of Decoupling.co, a digital disruption and transformation consulting firm. He is the author of  Unlocking the Customer Value Chain: How Decoupling Drives Consumer Disruption  and a panel judge in CNBC’s Disruptor 50 annual startup competition. Previously he was a professor at Harvard Business School for ten years and now teaches at the University of California.

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Table of Contents

The 4ps of amazon's marketing strategy, amazon marketing channel types, amazon's digital marketing strategy, become a digital marketer in 2022, amazon marketing strategy 2024: a case study.

Amazon is the largest online store in the world based on sales and market value. This online business has changed how people all over the world do business. Jeff Bezos started the company in Washington, USA on July 05, 1994. He was the CEO of the company till July 2021. Andy Jassy took over as the President and CEO of Amazon on July 05 2021. 

The first success for Amazon came along very quickly. It began as an online bookstore and kept adding to what it could do. In 1997, the company went public and is now on the NASDAQ in the US. Without help from the press, the company could sell books in 45 countries in less than two months. Amazon is now in more than 200 countries, and its website sells almost everything. Its subsidiaries include Audible, Twitch, IMDb, and Amazon Web Services.

Become a Certified Digital Marketer Today

Amazon looks at the " marketing mix " of a company or brand, which comprises the 4Ps - 

Here is a comprehensive explanation of each factor's function.

Amazon used only to sell books online, but now it sells millions of different products in many categories. Shoes, jewelry, clothes, toys, home and kitchen appliances, electronics, books, the great outdoors, sports, car accessories, and works of art are some of the most popular products. Amazon sells goods from small businesses and shops but promotes its brand , Amazon Basics.

A company can price its products in several different ways. Here are some to remember: 

• Cost-plus pricing 
• Value pricing 
• Competitor pricing 
• Price discrimination

Amazon often uses a pricing strategy called "competitive pricing," in which it looks at the prices of its competitors and bases its prices on those. It helps keep costs low and gives customers a lot of choices.

Amazon also uses the following methods to set prices:

• Promotional pricing
• Behavioral pricing

Amazon can change its products daily because of how it runs its business. This is its best feature, making it hard for other companies to compete with Amazon.

Amazon's online store has grown over the past few years in many parts of the world. Millions of products are now more accessible to customers worldwide to get. Even if you live in a remote part of the world, you can get packages quickly from Amazon. Part of the company's success comes from the fact that it ships fast and has fulfillment hubs.

4. Promotion

When it comes to marketing, Amazon knows how important communication is. It uses a lot of different kinds of advertising to reach people who might buy or use its products. Amazon has a lot of sales and discounts, which is a great way to build its brand. It has regular ads on websites, newspapers, TV, billboards, and social media , among other places. There are also affiliate sites that work with Amazon.

Also Read - What are the 7 Ps of Marketing? Read this article and find out! 

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PPC advertising on Amazon can be put into three groups:

1. Headline Search Ads

If you want to get your brand out there, it's best to use headline search ads. Amazon now has two ways to promote brands, especially during the holiday season:

• Headline Search Ads
• Amazon Stores

Title and Amazon Stores Together, Search Ads can help people know more about your brand and the products you sell. It also builds trust with customers and makes sure that your products are shown in the right way.

By combining Headline Search Ads, Amazon Stores, and Sponsored Products into a single Pay-Per-Click (PPC) marketing campaign, you can easily reach many shoppers in less time.

2. Product Display Ads

Another type of effective PPC ad is a "Product Display Ad," which is placed next to the product or in the "similar items" section on the product page. This kind of ad is only meant to be self-service. It is linked to the ASINs of the products, which gives sellers many options for focusing on different types of customers based on how they act.

3. Sponsored Product Ads

One of the best ways to get more people to see and buy your product is to pay for an advertisement. Sponsored product ads appear on the top when you search for something on Amazon.

Amazon's digital marketing strategy is comprehensive, and they reach the customers through digital marketing. Today, everyone uses social media. Amazon advertises its products on social media, taking advantage of those who use those sites and sending them to their product pages to help them sell more. It has teamed up with several big and small influencers in the country to reach its audience more effectively. It uses Twitter, Instagram, YouTube, Pinterest, and Facebook.

Amazon on Facebook

There are 10 million people who follow Amazon India on Facebook . It primarily uses Facebook to share company news and advertising. It uses strong advertising to get the word out about its Sale Days. It also stays up-to-date by publishing posts on different topics.

Amazon on Instagram

Interviews with artists from different backgrounds and key advertising are the main parts of Amazon's Instagram marketing plan. It has more than 2.8 million Instagram followers. The company's strategies for Instagram and Facebook are very similar, except that it doesn't post updates about company news on either platform. Both platforms have posts from the company that are very similar. 

Amazon on Twitter

Amazon India has a different plan for getting new customers through Twitter. It stays in touch with its followers, using a wide range of content, holding contests to get new customers, and following and creating trends. It is one of the biggest in its field, with two million Twitter followers. Twitter content makes it sound less like advertising and more like personal recommendations. 

Amazon on YouTube

The best thing about Amazon's YouTube ads is that they immediately grab people's attention. Amazon makes sure that its ads are always interesting and valuable. Most of the time, it does this by trying to make the customer feel special. 

Amazon on Pinterest

More than a million people follow Amazon on Pinterest. They use Pinterest to promote their products based on a wide range of themes to grab people's attention.

The way Amazon uses digital marketing is unparalleled. To stay competitive, they should keep making more exciting content and putting it out in the best way possible. Amazon Marketing Strategy gets updated periodically to stay ahead of the curve. Competing in the retail industry is complex, and Amazon's marketing strategy has helped the company stay ahead of the competition.

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FINPAC Bible Cover, Small Size Church Study Book Carrying Bag, Bible Protective Case with Handle and Zippered Pocket for Mother Lady Women Men (Black)

Purchase options and add-ons, about this item.

• High Quality: It's well made by the water-resistant polyester canvas and durable metal zipper. Soft and lightweight. This bible case can protect your bible or iPad from scuffing.
• Bible Cover Dimension: 10.2 x 7.5 x 2.5 inches. Perfect for standard or smaller size Bible with a max size of 9.5 x 6.5 x 2.2 inches. And it has a front pocket and multiple inner organizing pockets. Make you more organized! (Bible Cover Only).
• Multi-functional: This cute bible cover bag can be used as a purse style handbag, tote bag, makeup bag, book case/cover.
• Available in a variety of bright and fun colors. Easy to clean, wipeable and hand washable.
• Gift Ideas: This bible bag makes wonderful gifts for your family and friends on Christmas and Halloween. (There will be the inevitable dimension error of each product, please measure Bible Size carefully before buying.)

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Product description.

FINPAC Bible Carrying Case

This bible bag makes it a wonderful gift for your family and friends on Christmas and Halloween.

Smooth Zippers

Premium SBS zippers provide smooth zipper pulls and will be used for many years.

Measure Your Bible

Bible Cover Dimension: 10.2" x 7.5 x 2.5''. It's perfect for bible within the size of 9.5'' x 6.5'' x 2.2'', please measure Bible Size carefully before buying.

Easy Carry-on

This bible cover comes with a reinforced handle for easy carrying.

Plenty of Room

A front pocket and multiple inner organizing pockets. Make you more organized!

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Customers are satisfied with the quality of the handbag. They mention that it looks professional, is sturdy, and is pleased with the material, stitching, and feel of the cover.

" EXCELLENT QUALITY , CUTE COLOR, LOTS OF POCKETS!! PLEASE BUY!! THE SIZE FIT MY BIBLE JUST SNUGLY" Read more

" Very sturdy & the material feels great! A lot of storage for pens & highlighters and anything else you can think of!" Read more

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Customers are satisfied with the appearance of the handbag. For example, they mention it looks professional, has a nice cover, and is of excellent quality. Some appreciate the cute color and the many pockets.

"EXCELLENT QUALITY, CUTE COLOR , LOTS OF POCKETS!! PLEASE BUY!! THE SIZE FIT MY BIBLE JUST SNUGLY" Read more

"Perfect size for what I needed. Good quality. Looks professional . I'm very happy with purchase." Read more

" Great Bible carrying case !..." Read more

" Nice Cover ..." Read more

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Customer Stories / Energy / United States

Carrier Uses Amazon Bedrock to Help Customers Achieve Their Sustainability Goals

As a global leader in intelligent climate and energy solutions, Carrier Global Corporation (Carrier) strives to advance sustainable, efficient building environments and help customers reduce their carbon footprints. One of its products, Abound Net Zero Management, is designed to optimize energy efficiency and sustainability in buildings. Carrier wanted to scale this product for a global audience, especially in regard to managing and interpreting diverse utility data across different regions and languages.

Carrier’s Solution

On Amazon Web Services (AWS), Carrier harnessed generative artificial intelligence (AI) to scale and enhance the functionality of Abound Net Zero Management. Crucial to this mission are Amazon Bedrock , a fully managed service that makes it simple to build and scale generative AI applications with foundation models, and Amazon Textract , a machine learning service that automatically extracts text, handwriting, layout elements, and data from scanned documents.

Using generative AI built on Amazon Bedrock, Abound Net Zero Management can easily ingest utility data and combine it with historical trends and predictive analytics to provide insights that help customers manage their portfolio’s energy consumption and reduce their carbon emissions. With the new solution, customers can upload their utility bills in their local languages, which the solution analyzes to populate data that is used to generate actionable energy-saving insights.

“The solution that we created uses Amazon Textract to upload customer’s utility bills and extract all the textual information from those,” says Lexie Webel, Product AI lead at Carrier. “We took that textual information and passed it into a large language model offered by Amazon Bedrock to be able to intelligently process that data and grab those data points for us.”  

Benefits of Using AWS

On AWS, Carrier can deploy Abound Net Zero Management at scale while keeping customer data secure. Thanks to AWS AI services and to the scalability of the cloud, the company can extend this service to a global audience while maintaining consistent performance. “The good part about this is we only had to do a few clicks and a few lines of code, and we made it available for our entire customer base, both in the United States and globally,” says Webel.

This solution is still in the pilot phase, but once commercially available, it will enable customers to actively reduce their carbon footprints and offer insights into energy usage that lead to more sustainable choices. Additionally, customers will benefit from a streamlined, user-friendly experience, which makes it simpler to interact with Carrier’s products, track emissions, and optimize usage.

“Now that we can extract [customers’] data from their bills they can actually see all of the different analytics and insights that Abound Net Zero Management provides, ultimately helping them reach their sustainability goals, which ties back into Carrier’s main mission of helping to create a safer, healthier, and more sustainable world,” says Webel.

We only had to do a few clicks and a few lines of code, and we were able to make it available for our entire customer base.”

Lexie Webel Product AI Lead, Carrier Global Corporation

AWS Services Used

Amazon Simple Storage Service (Amazon S3) is an object storage service offering industry-leading scalability, data availability, security, and performance.

Learn more »

Amazon SageMaker

Amazon SageMaker is built on Amazon’s two decades of experience developing real-world ML applications, including product recommendations, personalization, intelligent shopping, robotics, and voice-assisted devices. Learn more »

Amazon Bedrock

Amazon Bedrock is a fully managed service that offers a choice of high-performing foundation models (FMs) from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon via a single API, along with a broad set of capabilities you need to build generative AI applications with security, privacy, and responsible AI. Learn more »

Amazon Textract

Amazon Textract is a machine learning (ML) service that automatically extracts text, handwriting, layout elements, and data from scanned documents.

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