Marketing Strategy and Structure of Amazon †MyAssignmenthelp.com

Question: Discuss about the Marketing Strategy and Structure of Amazon. Answer: Organizational structure of Amazon The organizational structure of Amazon has to be classified in a hierarchical way. It has the team of SeniorManagement which would include two Chief Executive Officers; there are three senior vice presidents and one controller who would be responsible for the other vital aspects of the business which would report straightaway to the Chief Executive Officer (Amazon.in, 2017; Bidwell, 2012) There would be seven segments such as information technology, legal operations and human resources who would report to the CEO of Amazon. Amazon would remain flexible to its adaption to the frequent changes to the external environment. Amazon this online retail store is also looking forward to make greater innovation in the field of e commerce and in future also it is also looking for an innovation in the industry of global logistics. (Kantor Streitfeld, 2015). External environment of Amazon: PESTLE analysis Political factors: PESTLE analysis in terms of political factors focuses on the political stabled base of the other developing countries, Governments aid to the e-commerce and the initiation of efforts for the development of the e-commerce. Amazon would benefit from the political stability. This condition further enhances the expansion of the company to make its business diverse (Ignat Maha, 2012). However, on the other hand, the entire government support for facilitating the e-commerce is also an opportunity which is looking forward to diversify its market segments with a greater amount of support from the government. The support of the government is needed in order to expand the company and bring improvements in the regulations of law which would allow the business to flourish more (Ignat Maha, 2012; Koumparoulis, 2013). Economic factors: The situation of Amazon depends upon the situation of the economies which concerns about its retail business carried out in online mode. The effects of the economy trends and its further changes on the macro environments report are taken into consideration of this analysis. These are the following external factors which are considered to be important in this particular company (Ignat Maha, 2012; Koumparoulis, 2013). First, the economic stability is needed to be taken into account of most of the developed countries markets. Second, to take into consideration, the economic recession of Europe this is considered to be a threat. It is the economic stability which would increase the success for the Amazon Company in these markets. Amazon might face boost in its growth in the other developing countries. The Chinese market is considered to be one of the biggest growing markets and in future it is hoped that would increase its growth in future (Ignat Maha, 2012; Koumparoulis, 2013). Social Factors: Social factors would determine the performance of Amazon as the leading retailer online. Therefore, this model can better identify the changes in the socio cultural trends on the firms macro environment (Ignat Maha, 2012).The increasing disparity in wealth and the increasing of gap between the richer and poorer countries, threats the conditions of the business in context of stagnation in the levels of income or the macro environment of retail business carried out in online. Nevertheless, the increasing of the rates of consumerism in the markets of the developing countries enhance the growth of Amazon and Amazon as a result can look forward to expand its market in these kinds of locations which would result in the online buying attitude as more people in the world have access in the internet (Ignat Maha, 2012; Koumparoulis, 2013). Technological factors: The advancement in technology leaves an impact on the company Amazon which would take into consideration the centrality of the technology in its online business (Ignat Maha, 2012). The PESTLE analysis in terms of external factors would take into consideration the increasing efficiency in the field of IT and enhancement of the cybercrime. If Amazon keeps on continuing to invest in the technology of information, it can save its business from the new competitors in the industry of e commerce (Ignat Maha, 2012; Koumparoulis, 2013). Environmental factors: Amazon is mainly an online business store, its operation are subjected to the natural environments conditions. The external factors of Amazon focus on the rising interest in the environmental programs and also focusing on the lifestyles of low carbon popularity (Ignat Maha, 2012). Legal Factors The following legal factors are important in terms of enhancing the regulation of product, easing the regulations of both import and export and increasing the regulations of the protection of the environment (Ignat Maha, 2012; Koumparoulis, 2013). For example in future Amazon can increase its operation through the Corporate Social Responsibilities to get in touch with the suppliers based on overseas. Internal Environment: SWOT analysis Strengths: Amazon being an online retail store, it can achieve its strength from leveraging the Information Technology and also looks forward to make its e commerce swift to put its company in the first line (Pandya, 2012). Amazon uses efficient distribution systems and the logistics to fulfill the customers need which in turn giving the company to gain its competitive advantages (Pandya, 2012;). Weaknesses: Amazon must limit its offers on free shipping as the company can lost its margins and would fail to make its cost optimize. Amazon is an online retailer as its aim is to expand plans in the markets of emerging economy can come as challenges (Pandya, 2012). Opportunities: Amazon might bring improvements of the companys margin by introducing its online based payment system by utilizing its own gateway of payment (Pandya, 2012; Belanger, Van Crossler, 2012). Amazon can utilize the opportunity to sell products under its own brand instead of selling products made by its partners. Threats: The online shopping is posed to be one of the biggest threats which might get exposed to hacking and also leaving the data of consumer exposed (Pandya, 2012). Risks for Amazon The risks involved are that Amazon might face a tough competition from the other retailers who might acts as threats if Amazon follows a behemoth strategy. The Business needs to focus on the marketing conditions in the context of pursuing the global strategy. Another risk that is involved in terms of the success of the company is that the online shopping is subjected to more risks and threats because the company leaves its the data of the customers exposed. Thus, Amazon needs to move to the site of allay consumers which would give security to the online privacy. The Amazon needs to take care of the pricing strategies; the greater amount of focus on the strategy of leadership based on cost might bring troubles to the company as it might enrage the other competitors to make them think that Amazon might get hold over their business. Business practices to encourage better performances Good Team: To achieve a better business performances, the need of a good team are needed who can take care of the selling financing collecting debts and many more. If the team members are paid for their work, they would be satisfied (Mckenzie Woodruff, 2016; Vrontis Thrassou, 2013). Assessing product: Products are needed to be assessed properly in terms of quality and design (Mckenzie Woodruff, 2016; Vrontis Thrassou, 2013). Gathering knowledge about competitors: It is important to know the market position and come up with strategies to make a systematic route to the market (Mckenzie Woodruff, 2016; Vrontis Thrassou, 2013). If one has a comprehensive knowledge about their competitors, the strategies can be made accordingly. Paperwork and trade: The goods must be carefully packaged, branded and send them to the customers and the terms of trade are needed to be clear regarding carriages, packages and the reservation (Mckenzie Woodruff, 2016; Vrontis Thrassou, 2013) Planning: Planning is important to frame out project work on a regular basis and this should be made on the information available to them (Mckenzie Woodruff, 2016). Works of Amazon In the website of Amazon one can find clothing, jewelry, computers and other accessories which can be bought. Amazon also focuses on the attempts in order to customize the experiences of the buyers. There are some techniques that Amazon follows and that are tracking the customers (Varia Matthew, 2012). Customer tracking is a very effective way to attract the customers. There are also other features such as multi leveled e-commerce. Amazon is one of the best sites to sell the merchandises on the web and due to its flourishing experiences; it has also come up with moir innovative strategies in its business (Varia Matthew, 2012). Knowledge Management and E commerce The companies which are e commerce are being supported by themanagement of the knowledge based system for the growth, acquisition of customers and retaining them in order to manage the costs which are variable in nature (Holsapple, 2013). On having the tools of better knowledge management, the companies based on online business, can enhance their business strategy such as Amazon, it is a platform for the new products. The company is also involved to make their customers engaged in order to validate their products only it is incorporated in the catalogs of online (Holsapple, 2013). The controlling of the acquisition of the customers is also one of the top concerns for the companies which are e-commerce. Amazon being one of such companies also satisfied on seeing the returning of the customers to their sites and the business also witnessed many new customers more than 40% (Holsapple, 2013; Galliers Leidner, 2014 ). The company is also focusing to avoid squandering higher discounts on the demands of the customers who are also looking forward to but again. Instead the bigger offer can be used to lure the new customers who want larger discounts. In this case, Amazon must start working with the Retention Science in order to restructure the marketing campaign of the email. The Retention Science managed the discounts from 0 to 6% (Holsapple, 2013). References Amazon.in. (2017).Online Shopping: Shop Online for Mobiles, Books, Watches, Shoes and More - Amazon.in.Amazon.in. Retrieved 11 August 2017, from https://www.amazon.in/ Belanger, F., Van Slyke, C., Crossler, R. E. (2012).Information systems for business: an experiential approach. John Wiley Sons. Bidwell, M. J. (2012). 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