MARKETING MANAGEMENT INTERNAL

THE SUCCESS STORY OF AMAZON

Simrah Ahmed- 19010126176

Siddhant Khandelwal- 19010126181

Aasawari Deshmukh- 19010126184

Aaryan Mehta- 19010126187

Division B

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 TABLE OF CONTENTS

INTRODUCTION…………………………………………………………………………3

AMAZON SUCCESS STORY……………………………………………………………4

WHAT SHAPED AMAZON……………………………………………………………...4

ANALYSIS OF AMAZON’S MAKETING MIX (4Ps)…………………………………5

HOW IS AMAZON SUCCESSFUL………………………………….…………………..6

CONCLUSION…………………………………………………………………………….8

BIBLIOGRAPHY………………………………………………………………………….9

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 Introduction

The first name of the company was Cadabra which had started in 1994 and founded by Jeff
Bezos. It became an online company in 1995 named as amazon.com. Starting from a small
online store, Amazon is the largest online retail company in the world. The name of the company
is being compared to the Amazon river which is one of the most famous rivers in the world.
Amazon has been a role model for several other online stores in the world and is the third largest
information technology company by revenue.

During its early day Amazon was not appreciated among people but today it is the most valued
online store to buy goods. The reason for their success was that they gave the customer the
topmost priority and were successful in predicting the future methods. Jeff Bezos, the founder,
had a totally different mind-set which was innovative causing Amazons success.

Amazon has started providing many different services like Cloud-based storage, streaming of
movies and songs and computing services. It is preferred by a large number of people in today’s
world. It has started selling household necessities like groceries and many more goods required
daily.

The reason for Jeff Bezos’s success was that he broke down the market expenses and was mainly
interested in satisfying the customer. In order to open the option of free shipping for the
customers they broke down the advertising expenses. Free shipping and low prices attracted a lot
of customers and were unable to ignore. But the most important reason for their success is their
relationship with their customers.

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Amazon Success Story
From selling exclusive goods, books and music CDs to basic necessities like groceries and
fashion Amazon is the largest E-Commerce leader in the world. Starting an online store in an
early age has made it possible for the company to provide the customers with timely deliveries.
Amazon has been successful in adding new features to its website and mobile app, has increased
customer loyalty and has produced better products at cheaper prices that the other online
companies

The beginning of an era of Amazon

Jeff Bezos, the founder came out with Cadabra in 1994, turning it into an online store named
amazon.com in July 1995. Planning on selling none other than books customers emailed the
company suggesting that they would like to receive Music CDs and Movies DVDs in the same
manner. This led to the expansion of the company and now it sells over 30 product categories
including booyks, Music CDs, Fashion, Hardware and Tools and many more. As per the
statistics of 2017 the company has had 5,66,400 emmployees working under which increased
from 17,000 in 2007. Since 2004 with $6.90 billion sales Amazon has marked its name as the
third largest online business by revenue of $177.87billion in 2017.

What Shaped Amazon?

Because its focus is on the consumer’s demands and perspective and no longer on building itself
against the competitor. Amazon success story is mainly driven using the ideas and innovation.
Jeff Bezos welcomes unconventional ideas and concepts and then relate them with new
technologies. He thinks that ideas stroke up growth. Against everyone’s will when in 2007,
Amazon launched itself into electronics device: Kindle E-Reader, it proved to be a confidence-
boosting game changer. And then on, Amazon brought in Echo and Alexa speaker devices with
more than 30,000 skills to bring solutions to people’s problems.

Because its focus is on the consumer’s demands and perspective and not on building itself
against the competitor. Amazon success mantra is mainly driven by ideas and innovation. Jeff
Bezos always welcomes unconventional ideas and concepts and then relates them with new the
technologies.

Jeff Bezos thinks that ideas stroke up growth. Against everyone’s will when in 2007, Amazon
launched itself into electronics device: Kindle E-Reader, it proved to be a confidence-boosting
game changer. And later on, Amazon purchased in Echo and Alexa speaker devices with more
than 30,000 skills to bring verbal solutions to people’s problems.

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Amazon focuses on delighting its millions of customers with free shipping, cheaper prices,
varied range of products and timely delivery and of course, great customer support.

Following are some of the points that made Amazon stand out “

1. Ideas & Innovation

2. Risk-Taking and Clear Thinking: Constant experiments taking the risk of everyone’s
disapproval is what led Amazon to what it is today. It works on the thinking that an idea
must consist of three requirements:
 Scalability
 Significant returns
 Originality .

The E-commerce company takes risks, experiments constantly and has thought that never kills a
potential idea. Amazon innovates the ways of innovation and thinking. In his memo, Jeff Bezos
makes sure to induce clarity in the thinking and then he with his senior team holds a discussion
with the prepared questions, counters, etc. on the advantages of the idea.

Analysis of Amazon.com’s Marketing Mix (4Ps)

Amazon.com Inc. uses its marketing mix as a effective approach to attract customers to its e-
commerce website. A company’s marketing mix or 4Ps (Product, Place, Promotion and Price) is
the mixture of strategies and tactics used to implement a marketing plan. In this regard, Amazon
reaches out to its target online market through its marketing mix, which specializes on the place
and price components as major selling points. As the biggest e-commerce organization globaly,
Amazon continually faces increasing competition, which can reduce the company’s market share
and global growth potential. To overcome this issue, the company must ensure that its marketing
mix is up-to-date relative to market trends. Through a suitable marketing mix, the company
enables organizational resilience whilst supporting innovation for long-term competitiveness of
its online retail business. Amazon’s marketing mix (4Ps) is designed to take advantage of the
online nature of the company’s e-commerce operations. The components of this marketing mix
enable competitiveness and facilitates international growth while Amazon.com Inc. innovates its
services.

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How is Amazon successful?
Amazon has caters its customers with such services that people want to buy from Amazon. It has
mitigated the advertisement expenditure by providing customers with free shipping services and
no e-commerce website development company could compete with that in today’s date.

An excellent user experience and design makes the customer find what they need more
conveniently. Because of a smart UX design, more options pop up before the check out in the
Amazon mobile app or website. Those options include Similar products, products with higher
ratings, products that are bought together. These options increase the sales. A hassle-free
payment model in the e-commerce application development makes the customer come back to it
again.

Amazon provides a long description of the products ranging from where it is manufactured,
which company sells it, what the ratings and user reviews are. Whenever a customer searches for
a product, the search engine displays the relevant options available on Amazon or country-wise
Amazon websites. This feature attracts the potential customer. Thus, increased traffic to the
website. The Amazon marketing team surely puts great amount of emphasis on the SEO which
enables the customer to directly reach the Amazon website and get what they want.

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Governmental Regulation and Legal Uncertainties.
Currently Amazon.com faces common business laws and regulations or regulations regarding
access to online commerce in addition to taxation laws. For instance, expanding company's
services distribution center network might result in additional sales and other tax obligations.
Regulatory authorities may implement particular regulations and laws governing the online
commerce or Internet. These regulations may cover pricing, copyrights, taxation, user privacy,
content, distribution and features as well as quality of services and products. Changes in buyer
protection laws furthermore may enforce additional burdens on enterprises conducting business
online. These regulations or laws might impede the growing of the Internet or other online
services. This could, in turn, reduce the request for Amazon's services and products in
addition to increase Amazon's cost of doing business. Additionally, it is not clear how
existing laws governing issues for instance sales and other taxes, property ownership, libel
and personal privacy apply to the Internet and online commerce. Disapproving resolution of
these issues may harm Amazon's business

Possible Weaknesses:
With the unpredictable future e-retail and the growth of competitors with similar market
approach, Amazon’s future may be at a threat. Although Barnes & Noble seems to be behind
Amazon in terms of sales and profits, time will tell how long they will remain behind.

Available opportunities:
Amazon may continue to raise more markets in other countries worldwide to remain
positioned on the E-commerce market that the company has enjoyed so much.

Threats:
E-commerce predictably changes every given time. There is a predictable threat a competitor to
equal to Amazon will emerge crushing every bit Amazon has built over the years

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 CONCLUSION

With a clear mindset of ‘win it’ and open arms for ideas, the E-Commerce Website Amazon
finds its success in the loyal base of its customers and an intent to keep innovating and
experimenting. Amazon Success Story talks about the E-Commerce organization's capacity to
keep up a relationship with its clients and propelling the items fitting the individuals' needs.
Amazon is the head of development and he is the first in making things easier for their clients.
They likewise give a choice to list of things to get and individuals can purchase items by
observing evaluations and remarks given by the old customers. It also suggest products which we
are interested to buy. Their suggestion is based on the products and services we have bought. It
also provides an opportunity to new entrepreneur to sell their products using this platform. The
way it treats their customers from the heart, this is the secret of unbelievable success it has
experienced. Amazon perfectly understood the needs of their customer and show’s how to do
business in the best way possible.

Amazon has become a house-hold name in both books and music industries. Its position among
small competitors is way ahead. The company’s ability cannot be doubted in both books and
music selling for years to come. Amazon has successfully expanded and hugely profitable due
to the provision of the best E-commerce ever, the knowledge of its customers and the
longevity of the relationships with its customers. And these 3 aspects will undoubtedly keep
Amazon afloat and it shall a dominant retailer regardless of the threats from its competitors.
For the smaller firms, the road may be rough and unpleasant to keep up with Amazon. To
remain on the market, they will have to re-invent themselves by providing E-retail equal to
the competitive market. Without it, success for them remains on the horizon. They will also
need to identify their customers and be able to keep them as long as possible to enable
consistence

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 BIBLIOGRAPHY

 Goldhaber, F.I. (2009)"The Politics of Amazon", The Willamette Writer, p6-10.

[Online]. Available at: http://www.peekyou.com/_huitom.
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Gets Serious", May20. [Online], Available at:
http://www.nytimes.com/2001/05/20/business/listen-up-it-s-time-for-a-profit-a-front-
row-seat-as-amazon-gets-serious.html?pagewanted=all&src=pm
 Hof, R.D. (2002) "How Amazon Cleared the Profitability Hurdle", Information
Technology, February 4, Available at:
http://www.businessweek.com/magazine/content/02_05/b3768079.htm
 Hof, R.D. (2001) Q & A with Amazon's Jeff Bezos, March26. Available at:
http://www.businessweek.com/magazine/content/01_13/b3725027.htm
 Hutchison, T. (2008) Web Marketing for the Music Business, Oxford, Elsevier.
 Kotler, P., Wong, V., Saunders, J. and Armstrong, G. (2008) Principles of
Marketing, 5th European Edn, Harlow, Pearson.
 Krishnamurthy, S. (2002) Amazon.com- A Business History1 To Appear in-“E-
Commerce Management: Text and Case”, Sep 27, [online]. Available at:
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