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QUESTION NO 1:

I choose “Amazon” the e-commerce website it is business to consumer website . Amazon, is


an American electronic commerce and cloud computing company with headquarters
in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and
market capitalization. Amazon.com started as an online bookstore, later diversifying
sell DVDs, Blurays, CDs, videodownloads/streaming, MP3 downloads/streaming, audiobook do
wnloads/streaming, software, video games, electronics, apparel, furniture, food, toys and
jewelry. The company also produces consumer electronics—notably, Amazon Kindle e-
readers, Fire tablets, and Fire TV—and is the world's largest provider of cloud
infrastructure services (IaaS). Amazon also sells certain low-end products like USB cables
under its in-house brand AmazonBasics. So asses it in terms of eight unique feature of e-
commerce they are as follow.

1. Ubiquity
2. Global reach
3. Universal standard
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology

I think amazon are good in ubiquity because its refer to available everywhere all the time and
its refer to feature market place and market space. Market place mean you visit the store
physical yes its headquarters in seattle, Washington you go their and check it. Marketspace
mean extend beyond boundaries and removal of geographic location yes amazon did this you
excess amazon from anywhere in the world. So amazon are good in ubiquity. Amazon are also
good in global reach it mean the total number of customer or user e-commerce can obtain it
measure the global reach so amazon have Iat least million customer visit their websites every
day. So its good for amazon revenue. Amazon are good in universal standard mean standard
that are share by each nation around the world. So it is easy for amazon to follow that standard
and they follow that and where good in it. And amazon are not good in information richness
refer to content and complexity of messages. Because traditional market and small retail store
are have strong richness. Because their provide face to face servies using visual cules. So
amazon I think are not good in information richness. Amazon are good in interactivity mean it
provide two way communication between merchant and customers. So yes amazon provide
that so its good in it.

So amazon are not good in information density mean the total amount and quality of
information available to all market participant. So as far as quality of information are concern
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it has bias opinion. So quality of information is not accurate. Amazon are good in
personalization and customization as far as l now because one time you purchase the product
from amazon then next time you visit the website they offer you or target the same ads that
product you buy previously. And as far as customization is concern amazon does not offer
physical customization in their websites and past purchase behavior. Amazon are also good in
social technology means social network like facebook, twitter, instragram etc. so have their on
pages in facebook,twitter to target their customer so thar good in it.

Suggestions:

Amazon are good in ubiquity ,global reach, universal standard , interactivity,


personalization/customization. But not good in information richness and information density.
So I would suggest that amazon should provide face to face services online in their websites so
that you can speak with consultant for the complexity of messages so it increase in their
revenue and benefit for this thing. As far as information density are concern you should provide
quality of information that are accurate and up to date to all market participants without bias
opnion. So I suggest amazon should offer physical customization in their websites and have to
create category where user set price and give product name so that the websites
automatically give result according to customer category it will benefit for amazon and increase
in its revenue.

QUESTION NO 2:

I choose amazon e-commerce company. The business model of amazon are as follow.

1. Shopping convenience (from home or office)

2. Decision-enabling information

3. Discounted pricing

4. Ease of purchase

5. A wide selection

6. Speed, and

7. Reliability of order fulfillment

AMAZON creates value for customers through a series of information services and logistical
processes. The revenue of amazon is us$ 107 billion (2015). And amazon used sales revenue
model.
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The market spaces it operate in Amazon started as an Internet-based book store. But
now, its business scope has increased a lot. Now it sells many things apart from books .
You can say it is an online retailer now. Apart from retailing, it services to other businesses.
So, in short, Amazon is a diversified business now.also sells e-book reader and tablets.
Moreover, it also provides back-end IT. The main competitor of Amazon and Amazon competes
with auction site eBay (EBAY); media game-changer Netflix (NFLX); Time Warner Cable (TWX);
Apple (AAPL), with iTunes; Google (GOOG) with its Play Store; and media producer Liberty
Interactive (QVCB). Amazon has several competitors in the electronics and general
merchandise segment, many of which are brick and mortar rivals including Best Buy, Family
Dollar, RadioShack, Staples, Target, Walmart, Sears, Big Lots, Delia and Systemacs. In the
electronics and general merchandise segment online competition includes Alibaba Group,
LightInTheBox Holding Co., Overstock.com, PCM, Vipshop Holdings, JD.com, Wayfair Inc. and
Zulily. In the other operating segment, Amazon competes with several of the world's largest
companies including CDW, PC Connection, Insight Enterprises, Google, Oracle;
salesforce.com, Accenture and Citrix Systems, among others. No single aspect of
Amazon.com’s business model is sufficient to create a competitive advantage. Locational shopping
convenience, ease of purchase, and wide selection are clearly not sources of sustainable competitive
advantage. Customers have long been able to order books from wide selections through catalogs or by
telephone. Furthermore, decision-enabling information is available at a plethora of online sites and most
public libraries. Finally, speed and reliability are clearly superior at a “real” bookstore, where one can
receive the product immediately (as long as it is in stock). Thus, it is the combination of some or all of
these characteristics that comprise Amazon.com’s competitive advantage. As a pure retailer, which does
not engage in the physical customization of the products it sells. The market strategy of amazon are as
follow
Segmentation, targeting, positioning in the Marketing strategy of Amazon:

E-commerce giants like Amazon uses demographic & psychographics segmentation to segment
the markets.Amazon’s segmentation is based on actual purchase behaviour: not what people
might have expressed interest in, but what they actually did. Amazon’smicro-level segmentation
targets each customer individually, allowing the company to convert visitors into long-term,
high-value customers. Customer segmentation often involves creating personas who will buy in
a certain way & certain products. Similarly Amazon targets the middle class & upper class people
who have got hands on experience in the basic technology but don’t have time or prefer
convenience over shopping from the physical outlets. Amazon has successfully positioned itself
as a Glocal (Go global Act local) e-commerce giant where one can buy anything & get it delivered
at any remote locations.

Marketing mix of Amazon:


Amazon is one of the world’s biggest online retailers, selling a vast array of goods such as books,
music, games, clothes and movies. As of 2013, Amazon employs 117, 300 members of staff, and
has a global net revenue of 74.45 billion US dollars. Since its conception in 1995, Amazon has
outgrown several competitors in its field, and has gone on to become a market leader, and has
around 240 million customer accounts worldwide. Amazon has used careful investment and
acquisition of other smaller companies to enable itself to stay ahead in its field, and continues to
expand its product range, whilst offering competitive prices to customers, and faster deliveries
to those who choose to sign up for its various account packages.
Product in the marketing mix of Amazon:
Amazon is an international ecommerce company, using connections to the internet from
various gadgets such as phones and tablets, to allow its customers to browse and purchase
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products immediately. These products are then delivered to the customer, using delivery service
companies. Amazon has built up a huge product base, and sells almost everything, including:
 Kindle
 Books
 DVDs
 Mobile phones/tablets
 Gaming consoles and games
 Clothes for men/women and children
 Jewellery
 Gardening equipment
Amazon initially started only with books and it is till date known as the highest book seller in the
world. This is why, Amazon also introduced Kindle. Kindly is an Ebook reader from Amazon and
it is the reason that the publishing market is having such a big revolution of converting hard
paper to digital ebooks because of he ease of reading by Kindle. Due to success of Kindle,
Amazon also introduced Kindly fire – its own tablet pc. Type in a search entry into a search
engine for a specific product, and the chances are that Amazon will stock what you need, and
will be on the search list. As they continue to grow, more and more products are added to their
inventory. Once established into books, AMazon quickly expanded to other products to maintain
its presence in the market. Where Ebay is know for techie products, Amazon is known for
knowledgeable products.

Place in the marketing mix of Amazon:

In the recent past, sites such as indiaplaza and allshcoolstuff were forced to close due to the lack
of trust when buying goods online. However, the brand image of Amazon enables it to have a far
and wide presence and the bottom line of the company is enough to enable massive R&D efforts
to secure the website. Amazon has customer service bases in many of the countries where it has
an online presence, with most bases being located in the different states of the USA. Amazon
employees are friendly and relaxed.

Promotion in the marketing mix of Amazon:

While Amazon has broadcast television commercials, these are mostly in the American market.
Amazon uses mainly web based advertising, and they make some use of billboard and smaller
methods of advertising. Amazon also uses advertising networks online so that whenever you
check something on amazon, you will see an ad for the same thing somewhere else on some
other website. Search engine marketing and getting the company’s name high up the search
engine’s results is also a smart promotional strategy by Amazon. The founder of Amazon had
this in mind when creating the company, deciding that it should start with an ‘a’.
In India, Amazon can be seen to rely on the best source of promotion there is – word of mouth.
People telling others about the site, or mentioning it in a positive way is a sure way to have a
new future customer. However, there are several print media ads to make their presence felt to
the people. However, much more is needed in the promotions department from Amazon in
India because the traffic of Amazon is being taken over fast by Flipkart.

Price in the marketing mix of Amazon:

Amazon is competitive with its prices, and has little ways of staying ahead of its market
contemporaries. For example, if you are looking to buy a book, Amazon offers you a new copy,
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or a used copy as well, complete with pricing and condition. Another initiative is to pay to have a
premium account, ensuring faster deliveries. Amazon can also keep their prices competitive due
to their use of staff. Minimum numbers – but well trained – ensure that consumers benefit from
the lack of overheads, and the result is shown in the prices online.
As more and more people can access broadband connections in India and get online, the
competition for the likes of Amazon.com will toughen. Amazon’s quiet entry into India has seen
some growth so far due to its brand image, and it will be looking to keep its prices as low as
possible to capture a slice of the growing market place. It faces tough competition from the likes
of eBay, flipkart and snapdeal.

Mission : “To be Earth’s most customer-centric company, where customers can find and
discover anything they might want to buy online, and endeavours to offer its customers the
lowest possible prices,”
Vision: To leverage technology and the expertise of our invaluable employees to provide
our customers with the best shopping experience on the internet”
Tagline : “#Aur Dikhao” in India. “From A to Z” globally.

Competitive advantage in the Marketing strategy of Amazon:

In order to differentiate itself, company acquired many IT & e-commerce start-ups like
pets.com, audible.com, Junglee.com, IMBD.com, Zappos.com, Woot etc. which helped them
in providing high value to their customers using existing technology of the acquired partners at
low cost. Amazon has also achieved economies of scale through extensive product offerings
which include electronics, toys and games, apparels, DIY and many more.
These offerings help Amazon to keep its prices low thereon passing on the benefits to the
consumers. Amazon’s robust customer centric approach to analyse the customer buying
behaviour based upon preferences has helped them to have competitive edge over their
competitors. More than 50% of the consumers are the repeat buyers at Amazon.com. Further
more, Amazon is one of the longest players to be present in the online sector and has a solid
hold in European countries and US. This bottom line is helping the company to expand in new
markets.
BCG Matrix in the Marketing strategy of Amazon:

On BCG matrix Amazon have certain businesses which are cash cows while others are stars &
question marks.
E-books, movies on demand & Amazon prime are practically cash cows giving the maximum
margins to Amazon. In fact, Amazon was a book store before it started electronics.
Kindle, VOD (Video on demand) & Amazon web services are question marks because with the
advent of technology these services have become obsolete & have low demand.

Distribution strategy in the Marketing strategy of Amazon:

Amazon realizes that the most important thing that customers want is the quick delivery of
products they order. This is where Amazon’s extensive distribution system has come into
play. Amazon now has more than 55 fulfilment centres exceeding 43 million square feet. This
does not include Amazon’s new “under-the-tent” strategy of using existing vendor warehouse
space for consumer-packaged goods to more quickly serve customers. Their aggressive strategy
of infiltrating warehouses and improving their distribution lines brings Amazon to new areas
and customers.
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Amazon had created a deep & structured network in order to make the product available at
remote locations that too free of cost delivery charges up to certain limit. Amazon has developed
an extensive global distribution network that continues to grow at frenzied rate.
Brand equity in the Marketing strategy of Amazon:

From being merely an e-book provider to emerging as the 2ndlargest e-commerce company in
the world, Amazon.com has steadily increased its spending on advertising and promotion to
make its brand stronger and have a higher brand equity. By April 2015, the brand of
Amazon.com was worth US$ 176 billion. “A brand for a company is like a reputation for a
person. You earn reputation by trying to do hard things. With more than 55% repeat buyers, the
numbers tells everything about the brand. It is among 13 world’s most valuable brand” (Forbes
list).
Competitive analysis in the Marketing strategy of Amazon:

Short listing the competitors of Amazon depends on what business sector of Amazon is being
considered. Apple would be the largest competitor when considering book or content related
delivery such as books, movies, magazines, and audiobooks. The itunes store will always be a
threat to the amazon store because of Apples devices like the ipad, iphone, and Macbook. When
considering web services Google would emerge as the largest competitor.
Customer analysis in the Marketing strategy of Amazon:

Amazon customers consist of upper & middle class social groups who have inclination towards
using E-commerce portals and are comfortable with online shopping. Majority of the customers
are professionalsor businessmen who are busy with their business/Job & find it convenient to
purchase anything online rather than visiting the physical outlet in order to save time & money.
Furthermore, the customers might also be the ones who are searching for deals. Due to this, the
portal is known to have specific days where they give massive discounts to their buyers.

Organisational Structure of Amazon:

organisational Structure of Amazon.com : Amazon.com, Inc. (NASDAQ: AMZN) is a


US-based multinational electronic commerce company. Headquartered in Seattle,
Washington, it is the largest online retailer in the United States, with nearly three
times the Internet sales revenue of the runner up, Staples, Inc., as of January
2010. Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it online in 1995.
The company was originally named Cadabra, Inc., but the name was changed when
it was discovered that people sometimes heard the name as "Cadaver". The name
Amazon.com was chosen because the Amazon River is one of the largest rivers in
the world, and so the name suggests large size, and also in part because it starts
with "A" and therefore would show up near the beginning of alphabetical lists.
Amazon.com started as an online bookstore, but soon diversified, selling DVDs,
CDs, MP3 downloads, computer software, video games, electronics, apparel,
furniture, food, and toys. Amazon has established separate websites in Canada, the
United Kingdom, Germany, France, Italy, Japan, and China. It also provides
international shipping to certain countries for some of its products.

President
Jeffrey Bezos
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Director
John Brown
Director
William Gordon
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Director
Thomas Ryder
Director
Tom Alberg
CFO
Thomas Szkutak
CTO
Werner Vogels
Communication
Patty Smith
2
Business Development
Jeffrey Blackburn
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eCommerce Platform
Brian Valentine
2
Legal
Michelle Wilson
International Retail
Diego Piacentini
North America Retail
Jeffrey Wilke
Seller Services
Sebastian Gunningham
Web Services
Andrew Jassy
CIO
Rick Dalzell
Digital Media
Steven Kessel
Operations
Marc Onetto
Control
Shelley Reynolds
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Business Development
Peter Cohen
Joyo Com
Wang Hanhua
Europe
Greg Greeley
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North American Fulfillment


Bert Wegner
Toys, Sports & Home Improvem...
John Witham
Books
Jeff Belle
Consumer Electronics Procure...
Frank Sadowski
Digital Media
Bill Carr
Kindle
Ian Freed
Europe Operations
Allan Lyall
North American Operations
Dave Clark

“Management Control”:

This revised principle of the scientific management is relevant and much related to
organizational structure, management, control and design. In the process of
management control Taylor and the neo-Taylor groups suggests that management
control is but a natural strategy in which management or employers’ responsibility
is to ensure that all the processes and production operations within the company
are stabilize and whatever problems that may arise are subject to the management
decisions. The management should see to it that everything inside the
organizational, in each divisions and departments are all in their proper order and
positioning. The process of decision-making as well as formulating guidelines and
rules within the organization should be the task observed by the management.

The control over the resources, production processes, and employees’ welfare are
under the supervision of the management. This set-up in an organizational
structure and design are patterned after the scientific management principle on
management control. This revised principle suggests of the same rules applied by
organizations in their own structures and design.

“Management Standards”:

This principle of scientific management speaks of a scientific way of selection,


orientation, and training processes of the employees. For Taylor, there must be a
set of rigid standards to follow in the process of selection, orientation and training
in the recruitment process. This second principle, aware of its rigidity in standard
procedures provides a strict screening of applicants that will produce highly
qualified employees. This management strategy posits a similar approach with the
new organizational structures and designs on the level of recruitment and training
process. For instance, in the Ritz-Carlton management, the selection and screening
process of applicants is rigid. There are screening procedures and interviews they
hold in order to satisfactorily select competent applicants and upon accepting
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deserving applicants, they undergo three weeks of training and orientation in order
to familiarize themselves with the history, philosophy, and nature of their work.
This process of recruitment is a new approach subscribed by any organizations;
however, this becomes similar to the scientific management approach or principle.

Management Cooperation:

In this principle, group formation, characteristics and effectiveness in an


organizational structure and behavior is similar to that of the scientific management
principle of cooperation. In order that a company may have good relations with its
employees and all the members of the organization, cooperation is need. The
collective effort of employees creates a better atmosphere and quality work within
the company. This in turn produces high quality of production not only of needs but
of knowledge.

AMAZON MANAGEMENT TEAM:

Executives:

Jeffrey P. Bezos : President, CEO and Chairman of the Board

Diego Piacentini :SVP, International Consumer Business

Sebastian J. Gunningham :SVP, Seller Services

Jeffrey A. Wilke :CEO Worldwide Consumer

Andrew R. Jassy :CEO Amazon Web Services

Shelley L. Reynolds :VP, Worldwide Controller and Principal Accounting Officer

Brian T. Olsavsky :SVP and CFO

Jeffrey M. Blackburn :SVP, Business Development

BROAD MEMEMBERS:

Wendell P. Weeks :Board Member

Thomas O. Ryder: Board Member

Jeffrey P. Bezos :President, CEO and Chairman of the Board

Jonathan J. Rubinstein: Board Member

William B. Gordon: Board Member


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REFERENCE:

https://en.wikipedia.org/wiki/Amazon.com#Amazon_sales_rank
http://businessmodeladev.blogspot.com/2015/05/amazon-business-model.html

https://in.answers.yahoo.com/question/index;_ylt=A0LEVijB7.tXEDoAUHUPxQt.;_ylu=X3oDMT
BybGY3bmpvBGNvbG8DYmYxBHBvcwMyBHZ0aWQDBHNlYwNzcg--?qid=2011101808

http://www.investopedia.com/ask/answers/120314/who-are-amazons-amzn-main-
competitors.asp

https://search.yahoo.com/yhs/search?hspart=Lkry&hsimp=yhs-
SF01&p=identify%20information%20of%20amazon%20company%20management%20team%2
0and%20organizational%20structure&type=YHS_SF_7400&param1=h4V77zECSIgvaawHmBS
QXKU8Ilje1EW6XMgWuvq1dEZ8vtiIr-
5JsltBlRc7C7Fvt_FYSk3OpuemDqUlbaxxbw3h_iAKz3Wage0Gg8Ru1nZ9aA7sG_Y4jEWEhGA
0vKmYLH0qDXLb9Jz6T727VI3_Fpy4p3x0GOM3ORSLG51GzCN7_b5Q-
8TK_AEhJC6Bfy2FdNmd-iNcA1pwiQ%2c%2c
https://search.yahoo.com/yhs/search?hspart=Lkry&hsimp=yhs-
newtab&ts=sy&type=YHS_IM_200&p=amazon+managment+team&param1=m_8eN
http://www.marketing91.com/marketing-strategy-of-amazon/

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