Advanced Marketing Unit IV Case Study-Amazon
Columbia Southern University
1. Why has Amazon.com succeeded online when so many other companies have failed?
Having success in the retail business has not changed much. Success usually consists of convenience, low prices and having a big selection. Amazon knew the key elements early in its existence.
Amazon started with humble beginnings. They built the largest online listing of books ever and made sure that the listings were in search results and they allowed third party businesses to sell less liked titles through the Amazon Marketplace. Once they conquered the book industry online they started selling items in 15 other categories to include music. This gave the sort of selections that consumers wanted. When they needed to, Amazon bought brands such as Zappo’s that is also an online success.
Amazon’s special niche is its supply chain optimization. They store items at each of the 60 plus fulfillment centers so that orders can be low cost and logistically possible. They have plenty of storage and shipping capability for the sellers. Doing this enables the item to spend only 33 days on the shelves of Amazon as compared to 70 days on the shelves of Best Buy. This helps them be able to offer items at much lower prices. Prices with Amazon are lower than eBay, Target and Wal-Mart. Amazon is also able to offer lower prices by encouraging competition among the third party sellers and offering customers used items.
Amazon’s goal is to empower consumers. Each employee is required to work, at least two days, at the service desk and respond to customer questions for at least one time every two years. The company’s focal point is to continue to improve the customer experience, strengthen recommendations and search for the benefits that can occur from automation. Because of that Amazon can take the credit for establishing things like customer reviews and making computer navigation much easier....