Q1. Description of the product/service and a brief history of the firm.
The internet market was becoming quite popular in the 1990s. Jeff Bezos started Amazon in 1995 to exploit the numerous opportunities present on this platform. The venture was originally established as an online bookshop. Jeff's objective was to receive orders and supply books in different markets across the United States. Within a year of operations, Amazon experienced significant growth. Its revenues increased from $15.7 million in 1996 to $148 million in 1997. This amount further increased to $610 million in 1998. Due to the rapid success of the company, Jeff Bezos was named as the Times Magazine Person of the Year in 1999. The success also motivated Bezos to diversify and explore other markets. By partnering with different stakeholders he managed to make Amazon an all-round shopping website that was popular across the globe (Hall, 2018). The company also offered an endless list of products to its customers. In order to survive in any market, organizations should develop innovative ideas that can allow them to attract more clients, as well as boost their popularity. Due to this fact, Amazon introduced a new subscription plan referred to as Amazon Prime. In 2005, the paid membership fee was $79. However, the company added more benefits and services to the membership plan and thus, increased the subscription fee to $119.
Q2. Describe and discuss the original 4 P’s of marketing (product, place, promotion, and price).
Due to its position as the world’s largest e-commerce firm, Amazon Prime has managed to add numerous products to its subscription service, Amazon Prime. Some of the benefits that Amazon offers to its customers include unlimited video streaming of documentaries, movies, and TV shows, free delivery of items, as well as music streaming. As stated before, Amazon Prime’s yearly subscription is $119. However, it has a special discount plan of $59 for students. Today, Amazon Prime mainly promotes itself through third-party vendors, as well as on the internet platform. Today, the internet is one of the favorite places to conduct business transactions, as well as market products. The company's primary website also helps in advertising the benefits offered in its subscription plan (Ferguson, 2017). Some of the advertising tactics that the company uses include direct marketing, public relations, and sales promotions. Another critical and effective promotion strategy for the company is word of mouth. This is mainly achieved through customer satisfaction. Amazon Prime is quite popular among its customers. Therefore, they are quite likely to convince their friends to subscribe to Amazon Prime.
The new 4 Ps (people, processes, programs, and performance) relating to the product
Amazon has established itself as a customer-centric organization. It focuses on satisfying the needs of its buyers, sellers, as well as consumers. Amazon’s vision is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices” (Amazon, 2019). Amazon has managed to create a vast customer base by satisfying its customer's needs. Some of the values of Amazon Prime are discipline, creativity, and good structure. This subscription service allows Amazon to keep up with market trends. The company has also managed to pay close attention to the interests, hobbies, and other desires of their customers. The firm has then focused on making these dreams a reality. This strategy has also allowed Amazon to grow from an online bookstore to an international e-commerce firm where customers can purchase anything including music, games, and movies. Innovation and creativity have also helped Amazon to keep up with the changes and remain relevant in the marketplace.
Q3. Explain the organization’s mission. Provide its mission statement or create one if necessary
Amazon Prime mainly specializes in video and music streaming services. Amazon’s vision is “to be Earth’s most customer-centric company, where customers can find and discover anything at Amazon.com” (Frue, 2019). The firm's primary aim is to satisfy its customers' needs by ensuring that its products are accessible in different areas across the globe. Amazon's goal is to improve access to different products and services.
Q4. SWOT (strengths, weaknesses, opportunities, threats) analysis for the organization
Amazon's first strength arises from its low prices. The company has managed to deliver products and services to clients at a low cost. This success has, in turn, boosted the company's growth. Secondly, Amazon is highly diversified. The firm deals with a wide range of products and services. This has been made possible by its strategic alliances with key partners. The diverse strategy has allowed the company to continue making profits despite certain fluctuations. Thirdly, Amazon has a strong brand name. It is quite easy for the company to introduce new products/services due to its popularity and dominance in the marketplace. Amazon’s customers are also quite loyal to its products. This has helped in improving the company’s competitive advantage. The fifth strength arises from the huge size of the firm. It is quite easy for Amazon to undertake different projects due to its size and financial strength. Lastly, Amazon has embraced a highly innovative and creative culture. This has enabled the firm to develop unique products that can satisfy the changing needs of the customers.
One of the company's weaknesses is patent infringement. This has issue has influenced the firm's goodwill negatively. Amazon has also found itself in a wave of bad acquisitions. Investing in areas with significant risks have pulled down the company's profits. Depending too much on the online platform is also a huge weakness for Amazon. This is because Amazon Prime is losing a lot of good opportunities due to poor advertising and marketing. According to Hassan, Sistani, & Raju (2014), Amazon’s dependenc
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